How much do you owe in Student Loans and how can you minimize it?
College is not cheap. In fact, the cost just seems to keep going up and up. Very few people can actually pay for the entire cost of college out of pocket. Students look to financial aide, grants, scholarships, and loans to pay for college. Student loans are one of the most common ways to pay for college and most college students graduate with student loan debt.
How much do you owe in student loans? Your first choice in student loans should always be the government. They offer the Stafford Loan and others often with a better interest rate then if you looked for money in other places. Also, if you are in more financial need, you can get a subsidized Stafford Loan. This means that the government will pay the interest on your loan until six months after you graduate.
Once your government loans have run dry, you will need to look for other loans. Your parents could get a loan, you could go to a private student loan service, take out a second mortgage, or use a credit card. I recommend that you don't take out a second mortgage unless you absolutely have to and I highly encourage you to NEVER use a credit card to pay for college.
If you still can't manage to pay for college, consider going to a cheaper school. Cheaper doesn't necessarily mean worse. State schools are cheaper because they also get money from the government, but they are no less quality.
How can you minimize your loans? The best way to have less loans to pay back is to not take them out in the first place. Unless you are a genius and must go to an Ivy League school, there's no reason why going to a state school wouldn't be smarter for you.
You can save even more money if you go to a community college for two years first and then transfer to a state school. State schools are cheap, but community colleges (which are state schools too, but they are only two years as opposed to four) are often have the price.
You can also save a lot of money by commuting to school. You might find that living in residence halls or dorms isn't all they are cracked up to be anyway. Commuting can save you a lot, especially if you live close by and don't have to pay much gas.
Finally, if you want to help pay for college, get a job. Get a part time job while you are in school and a full time job over the summer to help take a big chunk out of your tuition.
How much do you owe in student loans? Your first choice in student loans should always be the government. They offer the Stafford Loan and others often with a better interest rate then if you looked for money in other places. Also, if you are in more financial need, you can get a subsidized Stafford Loan. This means that the government will pay the interest on your loan until six months after you graduate.
Once your government loans have run dry, you will need to look for other loans. Your parents could get a loan, you could go to a private student loan service, take out a second mortgage, or use a credit card. I recommend that you don't take out a second mortgage unless you absolutely have to and I highly encourage you to NEVER use a credit card to pay for college.
If you still can't manage to pay for college, consider going to a cheaper school. Cheaper doesn't necessarily mean worse. State schools are cheaper because they also get money from the government, but they are no less quality.
How can you minimize your loans? The best way to have less loans to pay back is to not take them out in the first place. Unless you are a genius and must go to an Ivy League school, there's no reason why going to a state school wouldn't be smarter for you.
You can save even more money if you go to a community college for two years first and then transfer to a state school. State schools are cheap, but community colleges (which are state schools too, but they are only two years as opposed to four) are often have the price.
You can also save a lot of money by commuting to school. You might find that living in residence halls or dorms isn't all they are cracked up to be anyway. Commuting can save you a lot, especially if you live close by and don't have to pay much gas.
Finally, if you want to help pay for college, get a job. Get a part time job while you are in school and a full time job over the summer to help take a big chunk out of your tuition.
About the Author:
Looking to find some of the best college loans? Avoid expensive college loan repayment and try to pay as much for school as possible without loans.
posted by Credit Counseling at
10:36 AM
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