Although most people believe that higher education can bring you opportunities, confidence and hope, there are some pitfalls as well in the universe of higher education. Apart from deciding what school you wish to attend and which degree you want to pursue, you also need to consider the financial aspect as well. At present, the US has over $1 trillion in student debt and the fact remains that it can severely affect your career, your savings and your future.
With rising costs of education in most universities and college, it has now become imperative that you avoid student debt or at least keep it to a minimum. Here we are going to look at a few ways to minimise your student debt and yet earn the degree you want. Read on…
Consider the effects of debt
The first basic thing you need to do is talk about the negative effects of a student loan and how it can affect your earnings. In all probabilities, you will complete your graduation from your preferred institution with a heavy burden of debt. However, if you plan to avoid that then look around for other options. Research online about other colleges that offer the same programmes and fit your requirements. However, make your final decision depending on the tuition fees charged by the colleges. Be confident about choosing an institute that will help you minimize your debt load.
Apply for scholarships
It is important that you apply for as many grants and scholarships as you can. There are many websites which can help you with this. You must ensure that you ask the right questions regarding the financial assistance offered by your college and your particular academic department. You must also look for other scholarships or grants which they may offer or know about. You can secure a generous amount for your higher education by applying early on.
Getting a part-time job or an on-campus job can help you to earn some additional cash while you earn a degree. It can directly help in reducing the financial burden of your degree. Although studying in college can be very hectic, but if you manage take these additional obligations it can help you cut costs.
Save early for college degree
This one is primarily for the parents. If you want to send your kids to college, then it can be a great idea to start saving some amount in a monthly basis on the state sponsored plans. These savings plans also offer excellent tax benefits as well. However, if you do not spend the amount on higher education, you might need to pay a penalty of 10 per cent on your earnings. In this case, you may opt for saving in a retirement account that offers adequate flexibility.
Avoid private student loans
Let’s face it…private student loans are undoubtedly bad for you. The have variable interest rates which can rise significantly more than federal student loan rates. Moreover, the deferment and repayment rules are not much lenient, unlike federal loans.
The truth remains that costs are increasing and college can be really expensive. However, you can choose to avoid getting crippling student loans by following the tips mentioned above. Hope you have found these helpful.
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