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| Photo Credit |
(This
article is an adaptation of my guest post on StudentAdvisor.com, and is further
elaborated upon in Barrister on a Budget: Investing in Law School…without Breaking the Bank.)
Are you worried about graduating, about
finding a job, about repaying your debt?
Welcome to 2013. Finances are in
the forefront of every student’s mind and should be. Tuition expenses are steadily rising,
government interest rates waver between each administration, and the job market
continues on shaky ground. Rest assured,
you can decrease the burden of debt before you even graduate – yes,
before! If you can work hard, keep
organized, and implement some (or all) of these tips, then you can definitely make
your student loan debt much more manageable upon graduation.
1.
Avoid borrowing
loans altogether. Scour the internet, local and state
organizations, your parents’ employers, and corporations, anything you can do
to find scholarships. Then apply for all of the ones you qualify for. Joining the military is also an option that
many don’t consider. The military can
offer partial and sometimes full tuition assistance among other benefits. And, as some employers give preference to the
military, can be the difference in acquiring a job or not in this market.
2.
Graduate early. Take the full credit load every semester if
the tuition is a flat rate (every school is different, so check the
policies). Also, use your summers wisely
and do an internship that will give you course credit (and maybe some spending
money) as well as experience and references!
3.
Pay attention to
your loan agreements. Apply for subsidized loans and other
need-based loans that will usually cover part or all of the interest payments
while you are in school. Shop around for the lowest interest rates. Keep your
documents organized, and be aware of your repayment schedule to avoid late fees.
Know your options to make repayment
manageable to avoid fees and default.
4.
Negotiate
tuition fees. Schools have some fees that are
negotiable. Fees that are automatically
put into your tuition bill, such as gym membership and athletic tickets, can
sometimes be opted out of and removed from the bill. Check with your financial aid office and
discuss these options.
5.
Get a job. If you can handle working while in school
(make sure you are able to maintain a high GPA to open up employment options
upon graduation), then get a job…maybe two.
Colleges offer Resident Advisors (RA) and work study programs that are
flexible with school hours and offers benefits – reduced housing expenses and
free meals for RAs – or payment to pay for educational expenses. If you get a job off of campus, you can also
use your income to pay for educational expenses, decreasing the amount you may
be inclined to borrow.
6.
PAY YOUR
INTEREST! Most student loans have compound interest,
which means, if you don’t pay your interest, it adds on to the total amount
owed and the next time you are charged interest, the payment is based on the
new total. This can quickly add up! You will maintain the original balance owed
and will pay less over the life of the loan if you make your interest payments
during school.
7.
Budget. Keep track of your spending for a month
or a semester and create a budget.
Review your spending and determine what areas you can cut back in. Do you really
need the $7 Starbucks coffee or the newest iPhone? Can you buy used books or eBooks for lower
prices? Have you been flashing your
student ID as much as possible to get all the discounts on food, entertainment,
and transportation possible? There are
free apps available that can easily keep track of your budgeting for you or there
is always Excel Spreadsheet.
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