12 Ways to Avoid Student Loan Debt
Student loan debt often becomes a heavy burden for most college students after they graduate. Listed below are 12 strategies and tools that if put to use properly can help avoid student loan debt. Let me know what you think, and if you have additional items that should be added to this list please let me know.
1 PLAN FOR COLLEGE
They recommend that you plan for the college years, and how you will pay the tuition years before you apply to any college. Once a student starts high school, they should become proactive and think about their future and plan their college journey. Search on Google to learn what action is necessary to avoid getting into student loan debt.
2 DO YOUR BEST IN HIGH SCHOOL
While in high school the higher a student’s GPA (grade point average) the easier it will be acclimate to a successful college lifestyle. It is also smart to get a start on ACT and SAT’s so that the student gets the highest score they can. The test can be taken several times to improve one’s score, and with practice it will give the student the opportunity to challenge themselves to achieve the highest grade possible.
3 GET A PART-TIME JOB
As a high school student one can start by getting a part-time job, or if they have specific skills they are good at, if interested and willing to do what it takes can do something online to generate income. Starting an online business and offering services and skills one is good at can be a life changer. Today there are many opportunities available online that individuals can take advantage of with a small amount of capital. Do the research and decide what’s best for you. Success is not guaranteed, and there is work involved but the potential and benefits are limitless.
Here are just a few opportunities that are worth looking into are:
4 EARN COLLEGE CREDIT IN HIGH SCHOOL
Today many high schools allow students to take college courses while they are in high school, and the question is “should high school students take college classes?” Contact your local Community College or talk to a guidance counselor while in high school and get their professional advice. Taking college courses in high school can save time that one must spend in college and can also save on tuition. Just keep in mind that by taking college courses in high school might add some pressure on students, and that additional stress might take away from the enjoyment of the high school experience. Every student is different, and this is a personal decision they need to make.
5 FAFSA (Free Application for Federal Student Aid)
FAFSA should be a priority for every student that is considering to attend college. The FAFSA should be filled out before a student applies to any colleges. By doing this ahead of time they will find out what one school has to offer versus another. They will also find out if they qualify for any federal student grant, or work-study program. A short time after a student fills out the FAFSA; they will get an SAR (Student Aid Report) that will tell them exactly what they qualify for. They will not get an exact dollar amount because that will depend on which schools they are applying to since they are all different.
The sooner one files, the sooner the schools can tell them what they can offer and what packages the student qualifies for. If a student waits too long, they might miss the boat and funding might not be available in the schools they applied to.
FAFSA is not a onetime deal and should be filed every year to get the best opportunity to receive the best financial package.
6 SCHOLORSHIPS
Grade point average is important, but one should search Google sooner than later for the availability of grants and scholarships. It is recommended that students visit with their guidance counselors in high school and financial aid officer at the colleges they are interested in applying to. It would be ideal to attend an Ivy League school, but family finances might be tight, and debt is difficult to overcome so a student might have to reconsider where they go to school. Making a sound financial decision is important during this process. Overextending oneself financially can have negative repercussions down the road.
Attending a Community College for the first year or two can save a substantial amount of money and also gives students time to figure out exactly what direction they want to go in with their studies.
This is what my son and I are planning to do. Everyone’s situation is different and open communication between the student and parent is helpful. To save on tuition it is also recommended that students attend a college in their home state, because by doing that the cost of tuition can be substantially less than if they are an out-of-state student. When a student attends a college or university out of state, their tuition differs from in-state students. This decision depends on what the student is studying and what career direction they are choosing.
7 AVOID STUDENT LOANS
The federal student loan program limits how much one can borrow each year, and that can be between $5,000 and $12,000 annually. There are different repayment plans available, and it makes sense for students to keep their debt load as low as possible.
There are many private loan programs available, but it is highly recommended that you avoid those because students can get in way over their head in debt, and those loans are not flexible when the time comes to pay it back.
8 TAKE A SEMESTER OFF
If a student is having financial difficulties, they can always take a semester off to earn some extra money. That is a better choice, than to get into student loan debt. Keep in mind that having some work experience is also a learning experience and also a benefit. Customer relations and customer service is a good thing to learn, before entering a business career. Learning how to deal with people and get some work experience under one’s belt can go a long way, plus students can learn things they don’t teach in school. That is called life.
9 BUDGETS
Have a budget and stay on top of what you are spending versus what you are earning. Students should know what their monthly and annual expenses are. It is important that they have knowledge of what their reality is. Many students and parents don’t know what their student loan payments will be when they graduate, and they also don’t know what the interest rate is on their loan. Do not be one of those people. Situational awareness is a priority not only for student loans, but for all debt. Make it a priority to learn as much as you can about how families can tackle student loan debt?
10 CREDIT CARDS
Avoid credit cards at all cost. Banks are constantly advertising to college students and make it easy for them to get a credit card. What they don’t advertise as much, which they should is that those credit cards come with high interest rates and it’s easy to get carried away and spend more than what one earns. This is a problem that most Americans experience. Add those credit card bills to a student loan and it will take many years to get out from under that debt. So, remember, “Credit Cards are a NO NO.”
11 WHILE IN COLLEGE
Always be looking for a way to reduce your expenses. If you must get a meal plan in college get the least expensive one, don’t overextend yourself. If you are hungry, you can stock up with certain items from a supermarket that can save you a substantial amount of money. Another smart decision is to buy used textbooks instead of new ones, or check them out from the library. Textbooks can be very expensive and many used books are available for substantially less on Amazon. Also, don’t spend too much money on new clothes once school starts, and always remember that budgeting is a very important skill and an asset for one’s finances.
12 There is one last thing I want to mention and keep this in mind as you complete your college career. Senior Citizens Owe Billions in Student Loan Debt, and the Student Loan Crises Spans Generations. You do not want to belong in that category.
Whatever you do, I wish you the best of luck and remember to avoid debt. You can do this!
Goulash