In 2015, on average around $35,000 were in student loan debt1, and till 2018, the student loan debt has risen up to $1.48 trillion.
Considering the statistical results, it seems inevitable to graduate without debt. However, there are many ways to graduate with little debt. It is an art of money management and perfect budgeting skills that can save you from getting in a seven or eight digits debt.
Learn the tricks of when, how and how much to borrow money? How to repay the loans as soon as possible? Is it the college that’s challenging you to take loans or is it your true need? Click here to know how student can graduate with little or no debt.
1. Choose a Low-Cost College:
You can choose between in-state colleges, community colleges, and public sector colleges. Compare their fee structure and make a rough estimate of how much you may owe even after graduation. Look for grants, scholarships, fellowships, and other funding options offered by all colleges. In-state public colleges are less costly options and community colleges offer the least possible cost for your education. Opt for a college that has an annual fee of $10,000 or lesser.
2. Smart Ways to Skip Freshman Year:
A smart student hack is to save money during high school. Many students opt for AP (Advanced Placement) tests to skip the freshman year and earn college credit to begin field-related studies. Another option to save heavy tuition costs is to study at a community college for the first two years and study the basic courses of your choice. Afterward, you can apply for a transfer to a college from where you want to get the degree.
3. Work Part-Time:
You can opt for part-time jobs to earn to repay the loans as soon as possible. Deferring the repayment of loans is the biggest mistake students make as the interest rate keeps piling up and, therefore, it becomes hard to get out of the loan trap. It is estimated that students who work during college studies earn better grades. However, don’t take a full-time job as it will badly affect your grades.
4. Work as a Teacher or Research Assistant at College:
A lot of students prefer to work at their university as a teacher or research assistant. If you would like to choose a teaching career in the future, the job of teacher assistant will add to your credibility. If you love doing research in your field and may pursue a career in it, you have the option to work as a research assistant and earn a part-time salary.
5. Refinance and Consolidate:
A smart way to handle high-interest rates on all your student loans is to refinance them. Consolidate all your loans if you are getting low-interest rates. You can also refinance your previous loans to replace them with new ones based on the benefits you can reap due to the new loan.
6. Graduate in 4 Years:
The reports of the Department of Education reveal that only 40% of the students are able to graduate within 4 years. Most of the students take up to 6 or 7 years to graduate. This factor plays a huge role in getting you in debt as you have to pay an extra fee for 2 to 3 more years of study. Try to earn your degree fast and start working in the field to get the burden of debt off of your shoulders.
