School Debt is the topic in everybody’s mind currently, including the media overhype about student loan debt being the next trillion dollar bubble to pop. I will give you my two cents on this topic and it should help you decipher how to avoid being a victim to the student debt crisis. I think everybody that has dreams of getting a degree should do it with the expectation that taking out loans is not smart money management.
Why do I say this with a straight face and serious demeanor? Because recent college graduates cannot get a sufficient paying job straight out of college to cover loans and all the expenses of life. If you are lucky to land something immediately after your educational stint, then it will serve you best to not have the burden of student loans because in the early years of employment your wages will be lower than somebody with a few years of work experience. See below for the basics about how to avoid educational debt:
The Basics of Financial Management- School Debt (Advice):
Work part time to pay down tuition costs
Set up a payment plan with finance office so it can be paid on a weekly basis
Before taking loans transfer to a more affordable comparable school
Use loans as a final and last resort to avoid getting released from the college
Do not take fluff classes; concentrate on those courses for your major (Less overall Tuition)
Take free college credit courses in High school
Work at the college or university (Free or Reduced Tuition)
Go to an in-state public School
Work for companies who provide Tuition Reimbursement Programs
Use a % of income to pay down any student loans while still in school deferment stage
If you do all of these while attending university I foresee you in the future having much less student debt. I know you guys can do this because I did it during my bachelor’s studies. I graduated with only one semester of student debt. I paid it off in less than 12 months after I graduated. It will be a challenge to work and study at the same time but believe me it can be done. The work ethic you display will determine if you graduate free from years and years of possible bondage to student loan debt. Decide now before it is too late!
I hope you can see that attending school does not have to be a heavy burden on your future.
Comment if you have any more ideas to help others with avoiding student loan debt?
Rich Uncle EL
Image courtesy of sheelamohan / FreeDigitalPhotos.net
I completely agree with this post and think it should be the new norm for today's students. I am another example of someone who was able to get through school with no debt because I worked and took advantage of many of the tips you just outlined. I worked full-time all the way through my Masters degree while taking advantage of the tuition benefits of my employer. It can be done if a little effort and thought is given.
Most of the students are not so lucky to get debt free when they are out of the college. Your advices are really good to be in less debt during college days. Only thing here is you need to put in the effort and start working to lessen the burden of debt by following these basics.
I strongly agree with you Rita. Yes most of the students were not lucky to get debt free in a way that their parents have low income. But we cannot blame them if they really wanted to study in the university because they also wanted to reach their goals in life.Thank you for this blog, it give the students some tips and advices on what to do to get debt free.
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