We all know how stressful the student loan process is, and we also know that the FAFSA isn’t always our best friend. They might give us the maximum amount we qualify for, however, that doesn’t mean it is enough to cover our tuition. With high school graduation rates on the rise, more and more students are applying to colleges. This means schools also have a more limited amount of funding to provide to all these new students. In addition to grants, scholarships, and the federal loans students are taking out, some students have resorted to taking out private loans to help fund their education. With the student debt crisis on the rise and no solution in sight, we have to start preparing now for paying back student loans after college. I’ve compiled a list of tips on ways to help minimize student loans debt. Some of these might work for you, others may not, but hopefully somewhere in this list you find something that will help you graduate with as little debt as possible.
1.) Apply for Scholarships
Many students are working hard to graduate, but during your senior year, do your research on scholarships. While I know work loads vary for homework, if you set a goal to apply to one new scholarship everyday, or every other day, you will still be applying to a ton of scholarships. In addition, there are scholarships for almost everything, so make sure that in looking for scholarships, you are also looking for scholarships that match your specific interests. As someone who wanted to go to school for writing, I found a lot of scholarships that were for students pursuing a career in English. There were also scholarships for a ton of other things, so no matter what hobby you have, it might be relevant to some scholarship out there (seriously, I applied for a scholarship for people who love legos–as I do). In addition, there are varying degrees of work that go into submitting an entry for a scholarship. Some involve essays and forms, which can take up more time, however, others are as easy as just submitting your email for a chance to win. Granted, the odds of winning a scholarship aren’t always high depending on the applicant pool, however, any entry you submit is still a chance to win (someone has to win it right? It very well could be you).
In addition, don’t scoff at the little scholarships you get if you do get them, $500 here and there can add up pretty fast, or at the very least, help cover the cost of books. Any money that you don’t have to pay back is worth it no matter how small the number might seem, trust me. And even if you only get a little, it’s a little bit you don’t have to worry about paying back.
2.) Work during the school year
Working can help minimize the amount of debt you have, but you have to be responsible with what you earn. Depending on where you are located, wages can differ. If you are working part-time while in school, it is possible to save up some money. Granted, you need to be able to maintain your job without letting your grades slip. If you can manage your time, you’ll be able to put a little money down on loans while also having some money to spend on things like going out with friends. I recommend taking half of your paycheck and putting it in a separate bank account that’s sole purpose is to pay for your student loans. If you make $100 per week (which is on the low side for most paychecks), you can save up to $750 over the course of a 15 week semester by just saving half of your paycheck. Using that money to pay off a chunk of your student loan or pay off a chunk of the interest on your student loans will help save you money in the long run. Additionally, you still have an equal amount of money to spend on whatever it is you choose. This could be for coffee, food, entertainment, or really anything you want to do. As long as you are responsible about it, you can still have fun while minimizing student loan debt.
3.) Work over the summer
Unless you’re taking summer classes, chances are you are going to be sitting around all summer with little to nothing to do watching The Office for the 25th time. While we all love The Office, it’s unlikely that the producers and actors are going to pay off your student loans for you. Additionally, if you are thinking “well, I see my friends all the time over the summer,” sure, it’s great to see your friends all the time, but they probably aren’t going to pay your bills when they come due either. However, you can still do all of these things and manage working a little here and there. Personally, I choose to work full-time over the summer because I know I have the time to do that, but I recognize that not everyone is willing to sacrifice their entire summer for a few dollars. All I’m saying is saving some of your money from each paycheck can help you pay down some of your student loans, which will help you lower your monthly payments after graduating thus minimizing the amount of debt that you have. Believe me, working 20 hours a week now is nothing compared to working 50 or 60 hours a week just to make ends meet. Trust me, your stress levels will thank you.
4.) Go to Community College
A much more drastic measure to say the least. Going to community college can work for a lot of people, depending on what they want to go to school for. Sometimes going to Community College will allow them to get their general education classes out of the way for a fraction of the cost. By going to a Community College and transferring into a four year University, can save you on two years of ridiculously high tuition prices. While the cost might be that you aren’t able to have a “traditional” college experience, a state college is typically going to cost about $10,000-$20,000 per year vs. a community college that will typically run you about $2,000-$5,000 per year. Private Colleges and Universities are going to cost even more, some verging on the cost of $70,000 per year. Ultimately, Community College is a great way to save, and you still get two years of a “traditional” college education.
5.) Go to a less expensive school
I know, this sounds like the worst possible situation, and frankly, it is for most people, although some might consider being in debt until they’re 40 a lot worse. Because I’m trying to save you the torture of the latter, this is one of my tips because it may just save some of you. There is a strange misconception where people think that in order to get the best education, they need to go to a private university or an Ivy League or something like that, but that is not always the case. Don’t count a school out because it isn’t a private university. If they have a good program in your major, and it is going to save you money, don’t spend more for a lesser or equal education. There is no reason for you to go into copious amounts of debt, for the same education you can get elsewhere for a lot less of a price. I promise that if you work hard and know how to do the thing you are going to school for really well, you will get hired. No, you didn’t go to Harvard, but if you can perform the job and interview well, having an education from a state school isn’t going to matter. You just need to make sure that you are getting the most out of your education and making sure that you are setting yourself up for success when you graduate (Network, Network, Network!!!!).
6.) Ask your school for more money
I know, crazy right? For many schools this isn’t an option at all.However, based on experience, sometimes all you need to do is ask. Granted, I begged really hard, because ultimately Emerson was my dream school and I would have sold them my soul if it meant getting to go here, but I knew financially I was biting off a bit more than I could chew. Essentially, colleges give out most of their years endowment in scholarships to exceptional applicants or applicants that fit into specific criteria predetermined by the donor or college (depending on where the money is actually coming from). While there are needs-based scholarships that go to students with higher financial need, there are also scholarships that are not needs-based. They grant these to as many students as possible in acceptance letters. However, if one of these students does not attend the college, their scholarship is obviously no longer granted to them. If this happens with a bunch of scholarship recipients, there is sometimes some scholarships that will be reconsidered if a student asks for it.