How To Ace College Debt-Free

Personal finance

CFPB, nearly a million new student loans were originated in July 2018 alone with a total value of $16 billion, a 48% increase over the year before. That’s roughly $17,500 per loan on average.
  • For those repaying their debt, the average amount outstanding is $20,000-$25,000.
  • Some people are using credit cards, home equity lines of credit or other types of loans to finance education
  • A greater percentage of people who are financing education at a private for-profit institution are behind in repaying their student loans.
  • Meanwhile, colleges keep raising their prices. While many are increasing financial aid, it’s not enough to offset the mammoth price tags.

    “While it is somewhat understandable for universities to increase costs in line with inflation, especially when you consider the number of wages and resources needed to keep a university running,” notes James Garvey, CEO of Self.inc, “the price hikes we have found in some States are double (if not triple) the rate of inflation; posing the question of where is this money going?”

    What does Garvey suggest? Here are some basic tips:

    • Work through school
    • Take a gap year to work full time and save for school
    • Get scholarships or grants
    • Go to school part-time to work more
    • Live with family or friends instead of getting an apartment or living in a dorm to save on housing costs
    • See if you qualify for a work-study program
    • Build your credit so you can qualify for student loans with better interest rates to make debt potentially easier to pay off
    • Do your core classes/start college at a community college, which costs much less than a traditional 4-year school. Then finish your degree at a community college.
    • Take AP classes in high school so you can take the tests, get college credit and save money on those courses
    • Become a Resident Advisor to save money on housing

    Of course, don’t forget 529 College Savings Plans (parents). The earlier you start, the better.

    ” readability=”34.475920679887″>

    I’m devoted to the idea of a debt-free degree. In my humble opinion, one of the worst things to graduate with is a stack of loans. It’s a real albatross.

    In recent years, though, a startling number of Americans have plunged into debt. The situation is getting out of control, as $1.6 trillion has been racked up:

    • While those 18-29 years of age take on debt for education at the highest rate, the percentage of people taking on college debt has increased for all age groups for all types of degrees, according to the Federal Reserve.
    • According to the CFPB, nearly a million new student loans were originated in July 2018 alone with a total value of $16 billion, a 48% increase over the year before. That’s roughly $17,500 per loan on average.
    • For those repaying their debt, the average amount outstanding is $20,000-$25,000.
    • Some people are using credit cards, home equity lines of credit or other types of loans to finance education
    • A greater percentage of people who are financing education at a private for-profit institution are behind in repaying their student loans.

    Meanwhile, colleges keep raising their prices. While many are increasing financial aid, it’s not enough to offset the mammoth price tags.

    “While it is somewhat understandable for universities to increase costs in line with inflation, especially when you consider the number of wages and resources needed to keep a university running,” notes James Garvey, CEO of Self.inc, “the price hikes we have found in some States are double (if not triple) the rate of inflation; posing the question of where is this money going?”

    What does Garvey suggest? Here are some basic tips:

    • Work through school
    • Take a gap year to work full time and save for school
    • Get scholarships or grants
    • Go to school part-time to work more
    • Live with family or friends instead of getting an apartment or living in a dorm to save on housing costs
    • See if you qualify for a work-study program
    • Build your credit so you can qualify for student loans with better interest rates to make debt potentially easier to pay off
    • Do your core classes/start college at a community college, which costs much less than a traditional 4-year school. Then finish your degree at a community college.
    • Take AP classes in high school so you can take the tests, get college credit and save money on those courses
    • Become a Resident Advisor to save money on housing

    Of course, don’t forget 529 College Savings Plans (parents). The earlier you start, the better.

    Products You May Like

    Articles You May Like

    Samsung’s $1,400 smartphones: What’s up with the new sky-high pricing?
    Gerber looks for its next ‘spokesbaby.’ Here’s how to enter your child in the national contest
    5 tax tricks that could save you thousands
    Chicago-Area Construction Association Names Starchitect-Designed Condo Tower Residential Project Of The Year
    Is The Stock Market Going Up Too Fast? Are Stocks Overvalued?

    Leave a Reply

    Your email address will not be published. Required fields are marked *