Student debt has been rising and the average undergraduate doesn’t feel confident they will pay off their loans before middle age.
Lots of factors contribute to the increased debt a student faces. Some of these include:
Higher tuition costs
Increased time requirements to obtain a degree (5 year program vs 4 year)
Fewer students work while taking classes
More competition after graduation
Higher cost of living precludes early repayment of loans
And it is projected to rise. The Congressional Budget Office each year projects the total amount of new federal student loans the office believes they will issue with this year projected to be nearly $1.5 trillion.
Andrew Coates, candidate for University Regent in Southern Nevada, states, “One way that colleges can help students keep their debt under control is by locking-in tuition rates. This means that tuition will not be increased while a student pursues their degree. By locking-in tuition, students will know exactly how much they will pay each year in college, which will help them budget accordingly.”
ANDREW COATES, CANDIDATE FOR UNIVERSITY REGENT, SOUTHERN NEVADA
So how can students curb their debt?
Choose an affordable college
According to US News data, the average cost of tuition and fees for the 2018–2019 school year was $35,676 at private colleges, $9,716 for state residents at public colleges and $21,629 for out-of-state students at state school, with many universities easily exceeding these numbers. So students may want to consider getting early credits completed at community colleges and then finishing their degree at a university. Additionally, many will need to decide if its worth picking an out-of-state college for a degree that provides the same job market edge as an in-state school.
Research available loans, grants and scholarships
Many students don’t apply for grants, loans and scholarships because of time constraints, misconceptions such as they don’t fit a demographic, or “will be credit history required?”, and lack of optimism that they will even qualify.
Mark Kantrowitz, publisher and vice president of saveforcollege.com states, “More than 2 million students did not get a Federal Pell Grant even though they were eligible because they did not file the FAFSA.” FAFSA (link attached) is a free application for federal student aid assisting students who want to apply for a loan, grant or work study.
Scholarships are ideal in that they do not need to be paid back. Many can be found at scholarships.com.
Learn to budget
Many students get a culture shock living on their own when they spend as if Mom or Dad is still footing the bill. If eating out nightly, shopping online, or using excess data does not fit into the amount your trying to live on each month, budget expenses early on and stick to it.
Avoid the credit card trap
When we try to build our credit as a young adult, we may apply for a credit card that advertises to college students with no monthly fee and “rewards.” However, the interest rates can be up to 25%. If you do use the credit card don’t borrow more than you can pay off each month, always shooting for a zero balance.
Keep your living costs down
Rent, transportation, utilities, meals, entertainment, internet and phone service, add up and can be more costly than tuition. Share expenses with roommates or family members to lessen your loan debt.
Cook and prepare meals for the coming days, use school Wi-Fi, carpool to class, purchase less beer, and use the university gym to save money.
But most importantly, don’t stress about the debt. Your efforts should be concentrated on your schooling and getting a degree is one of the best ways to combat your debt later in life.