How to Manage College Debt
Did you know that students at public four-year colleges are graduating with an average student loan debt of over $17,000 and credit card debt of over $3,000?
Dealing with over $20,000 in debt can drastically affect how a student can live after graduation. They may find that the starting salary in a new career is not enough to pay expenses when they add in student loan and credit card payments.
Here are some tips on how to avoid excessive college debt:
- Set up a budget, even before going to college.
Consider tuition, housing , book and fees, transportation, food clothing, entertainment and miscellaneous expenses. Once a budget is set up, stick to it!
- Don’t borrow more in student loans than needed.
Use the money only for educational purposes. If there is extra loan money, return it.
- Get a part-time job when in college.
This will help to make extra money and have less time to spend it. Work-Study is a good option if for those eligible.
- Use the meal plan.
When you add up that daily bagel and coffee from the student union, lunch at a fast food joint and dinner at a restaurant with friends, you’ll find you’re spending over $4,000 each school year with nothing to show for it.
- Don’t get a credit card
If a student has one, use it only for emergencies and pay off the balance each month.
- Apply for financial aid each year.
It’s called the Renewal FASFA.
- Apply for scholarships after the freshman year.
They’re not as plentiful, but they are out there. Check with the financial aid office.
Source: Nebraska Careers and Education. If you would like a copy, contact the Dixon County Extension Office at 402-584-2234 for the 2003-2004 edition. It contains occupational information as well as information on managing finances, completing applications and more.
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