A college student today graduates with an average of $24,301 in student loan debt, according to the Federal Reserve Bank of New York. While many students believe that loans are worth the investment in their future, a growing number of borrowers are defaulting on their student loan debt.
Explore financial aid options: Research and apply for all financial aid opportunities, even if you think you may not qualify. You can apply for federal student loans by completing the Free Application for Federal Student Aid.
Compare financial aid packages: As you receive acceptance packages from colleges and universities, pay close attention to the financial aid programs offered by each school to determine which offers the best option to finance your college education.
Start early. From the moment your child is born, start putting away a little bit each month toward education. Use a state-run 529 plan or an IRA Coverdell account to save for college education tax-free.
Apply to colleges you can afford: Carefully weigh the costs and benefits of an expensive school to a less costly institution. Students who graduate with little or no debt may have more freedom to take career risks.
Consider the job prospects for your major: Before declaring a major, research post-college career prospects. For example, if you need to take out $50,000 in student loans to obtain a degree that results in a job that typically pays about $35,000 per year, you may want to rethink your major.
Research scholarships: Continuously apply for scholarships throughout your college years to defray expenses. Keep your eyes open for opportunities.
Understand your loans: Some have higher interest rates. Some offer different terms to defer payment while a student is pursuing another degree. Some allow you to start paying the interest immediately, while you're still in college, to lower the loan's overall cost. Before considering student loans from a private lender, seek information and apply for federal student loans such as Stafford, Perkins and PLUS loans. Also talk to your college to see if it offers an institutional student loan program.
stltoday.com
Explore financial aid options: Research and apply for all financial aid opportunities, even if you think you may not qualify. You can apply for federal student loans by completing the Free Application for Federal Student Aid.
Compare financial aid packages: As you receive acceptance packages from colleges and universities, pay close attention to the financial aid programs offered by each school to determine which offers the best option to finance your college education.
Start early. From the moment your child is born, start putting away a little bit each month toward education. Use a state-run 529 plan or an IRA Coverdell account to save for college education tax-free.
Apply to colleges you can afford: Carefully weigh the costs and benefits of an expensive school to a less costly institution. Students who graduate with little or no debt may have more freedom to take career risks.
Consider the job prospects for your major: Before declaring a major, research post-college career prospects. For example, if you need to take out $50,000 in student loans to obtain a degree that results in a job that typically pays about $35,000 per year, you may want to rethink your major.
Research scholarships: Continuously apply for scholarships throughout your college years to defray expenses. Keep your eyes open for opportunities.
Understand your loans: Some have higher interest rates. Some offer different terms to defer payment while a student is pursuing another degree. Some allow you to start paying the interest immediately, while you're still in college, to lower the loan's overall cost. Before considering student loans from a private lender, seek information and apply for federal student loans such as Stafford, Perkins and PLUS loans. Also talk to your college to see if it offers an institutional student loan program.
stltoday.com