Understanding College Financing
The first step to avoiding excessive student loan debt is to understand college financing. There are three ways to pay for college; by federal grants and loans (for low-income students), by a cash payment-plan while attending, or by private loans or grants and scholarships. Of course, the two most ideal options are paying in cash while attending or having grants cover most or all of the attendance costs. These are the only two ways to avoid student loan debt. While this sounds incredibly difficult, it doesn’t have to be. Learn how you may be able to avoid the burden of student loan debt.
Tips for Avoiding Student Debt
- Apply for as many scholarships as possible. – Scholarships are like private grants and they do not have to be repaid. Several organizations and companies give out scholarships every year. Websites such as fastweb.com can help you find scholarship opportunities that are right for you. If you can’t write scholarship essays, don’t worry. Students who maintain good grades throughout high school are often automatically eligible for scholarships. If your grades were less than perfect and you’re not an A+ essay writer, you may be able to qualify for scholarships that cater to underserved groups such as African Americans, women, Hispanics, and others.
- Go to a state college. – State colleges often have much lower costs than other colleges. They can offer these competitive rates because they are partially funded by the state and/or federal government. Most state colleges offer popular and sought after degree programs and have courses that are meant to meet your needs and fit your schedule. State college can cost as little as 1/4th the cost of private colleges and can offer you better programs because they are required to meet certain educational regulations that private institutions are exempt from.
- Think of your career path before you attend college. Ask yourself if a four-year college is truly necessary for your career. For example, in some states RN nurses only need to attend community college to obtain an associate’s degree in nursing. Certain skilled trades such as web design, carpentry, welding, construction, and even IT maintenance also don’t require 4-year degrees. If your career path is a skilled trade, consider going to community college or trade school instead.
- Work a good job where you’ll receive tips. – Some jobs such as waitresses/waiters in high-end restaurants, pizza delivery drivers, bartenders and others can make a significant amount of income working part-time. How? Through earning good tips. Tips are a simple, tax free way to earn money that you can put towards college. Many college students are able to finance their education by working at jobs that earn them decent tips.
Of course, there are several factors to consider before paying for college out-of-pocket. Talk to your parents, a financial advisor, or a student counselor before making a final decision about college financing as it is an important step that will affect the rest of your life. Many colleges allow potential students to speak with advisors in the financial aid office to learn about what financing options will work best for them.
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