Finance Friday: Avoid Excessive Student Loan Debt
With the cost of higher education sky-rocketing, it may seem that student loan debt is unavoidable for someone wanting a college education. With a little planning and effort though, you can minimize the amount of debt you need to take on.
First, be realistic about your future earning potential in your chosen career field. Do some research to help you project what you might expect to earn during your first year after graduation. Then, keep your total student loan amount equal to or less than that projected first-year salary.
Before you take on loans, secure as much assistance as possible through grants and scholarships . Do not limit yourself to only the scholarships available through your chosen college. There are lots of independent scholarships out there available to all types of students. This is money you don’t need to pay back, so it is well worth your time to apply for any that looks like it might be a match for you.
When it comes to student loans , be sure you explore all your options to look for the terms that best meet your needs. Some loans are more flexible than others in the repayments options.
Finally, borrow only what you need to cover your tuition and expenses. At the same time, look for ways to minimize those expenses – like renting textbooks instead of buying them, cutting back on dining out, or living at home.
With a little planning, you’ll be able to graduate without the burden of excessive student loans.