Avoiding Student Loan Debt

5 Tips For Avoiding Student Loan Debt

As much as college provides an opportunity for enjoying experiences, making new friends and having fun, there is also the issue of student loan debt that everyone is talking about. As a college student, there is a high chance that you will receive some sort of student loan to fund your tuition. Once you graduate, this debt can sometimes be overwhelming. The good news is that there are various tips for avoiding student loan debt or making the situation less stressful and bearable.

These include:

Work As You Study

Even though it might take longer to finish your degree, working as you study can eliminate all your student loans. By the time you graduate, you might not be owing anyone even a single dollar.

A part-time or a full-time job can help you earn substantial amounts of money which you can use to meet your college expenses while using some of it to clear your loan. If you can’t find a full-time job, you can also consider side jobs such as writing, blogging or creating handcrafted items and then selling them to your colleagues.

Explore Your Funding Options

A cheap college is not always the best option. As much as some colleges may require lesser upfront costs they may not have as many scholarships or funding opportunities compared to those that are more expensive.

Therefore when searching for a college, you need to conduct a thorough assessment of its funding options and then compare these with the tuition fees. You don’t want to be in a college where you are spending all your money on tuition.

Consult college representatives to determine the funding options available and then decide accordingly.

Be Careful of Your Expenses

Most college students find themselves deep in debt because of unnecessary expenses. At the end of the day all these expenses require money and you may be forced to borrow money to sustain such a lifestyle.

Shopping extravaganzas, eating out and social gatherings can lead to a huge negative impact on your budget. Don’t be tempted to spend money the way you want just because you can swipe your credit card or borrow more money.

Instead, create a budget and stick by it. Always look for ways of eating and staying cheap, since accommodation will consume a huge portion of your money.

Stay Home

As noted above, accommodation expenses can easily spiral out of control especially if you are not careful. If possible, it’s advisable to choose a college near your home. Living at home instead of on campus is guaranteed to save you thousands of dollars in travel and housing expenses.

You don’t have to live in or near campus to socialize with fellow students. You can still get the same opportunity even when you are staying at home. Since you will have no rent or utility bills to pay, you will only have to borrow a small amount. This should be enough to cover your campus expenses.

By the time you graduate you will only have a small loan or even none at all.

Final Thoughts On Avoiding Student Loan Debt

College is a time to have fun and enjoy. However, don’t get carried away. You may find yourself with student loans running into thousands of dollars by the time you graduate.

Most of the options listed above will require you to make some sacrifices if you’re keen on avoiding student loan debt. At the end of the day, diligence and pro-activity remain your best weapons if you want to avoid student loan debt.