How to minimize College Loans
You probably have heard many horrifying experiences with friends and family members who have had college loans that take them 10-20 years to fully pay off. By that time the interest rate has grown so large that it is multiple times the principle amount. This is a horrible burden especially for eager undergraduate students who are ready to start their lives off. In this slowing economy, finding a job is not that easy as well. So you are stuck with a hefty college loan with an uncertainty of not being able to find a job. As the interest rate start to build up, you will slowly fall into a deeper hole and force to watch as your credit score slowly decrease.
Don’t be afraid! There are a number of ways in which you can avoid having too much college debt.
Look for work study positions
Many colleges offer work study positions especially to students who come from loan income families. Work study jobs are jobs specifically offered to students who are struggling to pay for college. Though students are only allowed to work up to 20 hours a week, it is a great way for students to study at school and start paying off the debt. Another great benefit to these positions is that the school employers will work around your schedule. This will allow you to go to class and work during your free time. This is a great opportunity to start paying off your debt before the interest rates even begin (most interest rates start the moment you graduate from college).
Negotiate for more Scholarship
At first you may not get the scholarship that you hoped for. However the school finance department is typically open to negotiation. Many students write letters of appeal to the finance department in hopes of receiving more money from the school. In a number of cases, the college of university will increase the scholarship given to less fortunate students. Most Universities will not reject a student if they see high potential in students just because they cannot afford the school.
Transfer from a Community College
Transferring to a university from a community college will almost always save you thousands of dollars a year. Many universities are also very open and accepting to students who are transferring. Community colleges are subsidized by the government and are much cheaper than private and even state schools. The education provided by community colleges is typically high quality and the teachers are very reputable. Statistics show that nearly four out of every ten students started at a community college before transferring to a larger institution. This is a great alternative to attending a four year institution and having a huge amount of debt after graduation. Just be sure to see which credits are transferable before taking the classes at a community college.
Don’t take out unnecessary loans
College students always want to have fun with their friends. Some college students will take out additional money cash now loan. Little do they know, these loans often come with very high interest rates and short terms. Before you know it, the loan will be due. Many times students will think it is fun and games before they realize the loan, on top of their college loan, is getting them into trouble.
These are just a few of the many ways in which you can reduce your debt and start building a strong and healthy credit score. Remember late payments are very harmful and can stay on your credit card for many years.