Putting yourself in debt for your education seems like one of the few instances when it is okay to be in debt. However, a debt is still a debt and it still gets you to waste your money on interest. It also keeps you from growing your finances like you should if you did not have the credit obligation. All in all, you can say that finding a way to keep yourself from debt is still a good way to go.
Some people are okay with the idea of getting student loans because it will help them earn more when they enter the corporate world. But once they are out there, they are faced with the difficult task of paying off student loans. Others just opt for a modest life and skip college altogether just to avoid these debts.
Well that does not have to happen to you. Education is still vital for your financial success but that does not mean you can allow it to ruin your life.
Options to go to school without using student loans
There are various options that you can avail that could be a great alternative to getting student loans. Here are some of our suggestions.
Student Grants. The great thing about a grant is you don’t have to pay it back. There are companies who actually offer this assistance to the children of their employees while other business owners just select from a talented bunch who are in dire need of financial help. Sometimes, you are required to work for the company when you graduate. All in all, that is not really a bad deal because you get the assurance of work after college – which comes totally free. There are also federal and state grants that you can apply to. If you are qualified, this will really help take care of your college finances and you don’t have to apply for a student loan. You can check out the website of StudentAid.ed.gov for more leads to where you can get these grants.
Scholarships. If grants are more inclined towards those with a financial need, a scholarship provides financial assistance to those who can be merited with it. This is one reason why your parents were nagging you to do well in school. Your hard work will pay off by helping you qualify for scholarship grants. Universities and colleges also offer this so check out with the school that you wish to attend. They have student financial assistance programs and it pays to research about them.
Work study programs. There are school who give work study opportunities to qualified students too. Most of the work will be on campus so it shouldn’t be hard to keep up with your classes. It will be like exchanging your time and effort for your classes. In some instances, it will not cover the whole amount of your tuition but it can certainly help keep your financial needs minimal.
Educational benefits from work. If you are one of those who wish to go back to school while continuing their work, you can ask your employer if they can grant you this benefit. The federal tax law states that you are entitled to receive a little more than $5,000 annually from your employer. This money is something that you do not have to report to the IRS as an income so it will not be taxed. There is a restriction though. The education you will get will have to be something that you can use in your field of work. But if it is a different career, you may not be given the grant.
Of course, saving up for college is something that some kids have had to deal with growing up. These are only a few of your options. You just need to be really resourceful about it. The chances of it being very tiring is high but the extra work you have to do right now is a worthy sacrifice for the prosperous and debt free life that you will enjoy when you graduate. Check out FinAid.org to know other options about getting an education without putting yourself through so much debt.
Tips to help lower your student debt while in school
In case you do have to put yourself in student debt or you already have, there are ways for you to help alleviate your credit situation. Here are some of the things that we suggest you do while you are still in college:
Use a budget plan. A budget will help keep your expenses from being too excessive. You don’t want to waste your money and keep your funds concentrated on the essential expenses in college. The budget plan will keep the debt from growing.
Put yourself to work. Getting a part time job while studying will help you save up on your expenses. This can even be a good way for you to keep your loan low. Instead of relying on your credit cards, you can pay for things in cash and keep yourself from accumulating any more debt outside of your student loan.
Do not incur credit card debt. Since we have mentioned credit cards, you have to keep yourself from this type of debt. Best not to put this on your plate when you graduate as it will be another waste of money.
Pay your principal before it incurs interest. If you pay your student debt slowly while you are in school, you are actually paying off the principal. The interest will only start coming in 6 months after you graduate. That is another reason to get a job while in school.
Research on possible debt relief programs to help with debt. It pays to be prepared and you may want to think about how you can best pay down your debts especially when the interest starts to kick in. You can use debt consolidation loan. Find out how you can prepare for this like keeping your credit score up so you can get a low interest loan to help with your debt.