Jun 052015
 

Receiving a higher educational degree affords many opportunities for future careers and for earning a larger salary. Attending a college or university after graduating high school is a path many students choose to take. While a college degree opens many doors for success, it often comes with a hefty cost. Tuition costs are often on the rise, and many students cannot afford to pay for school upfront or during their studies.

Student loans are a reality for many, and loans can quickly accumulate. Being readily informed about student loans in advance can eliminate some of the burden after graduation.

A Different Generation

Thirty years ago, those wanting to pursue a college degree worked hard to afford it. Money was saved many years in advance, and people sacrificed wants to accrue a solid financial ground to go to college.

As generations evolved, the mentality of being deserving of a college education took over. With this way of thinking came generations of graduating high school seniors unprepared to pay for their continuing education. Therefore, student loans became popular.

College students soon learned that borrowing money from the federal government or a private lender allowed them to pay for college without having to save in advance. Money was spent easily without realizing that it would all need to be paid back, plus interest, shortly after graduation. A new problem quickly surfaced.

Reality vs. Fantasy

Many recent college graduates have the idealistic dream that the perfect job with a fantastic salary is just around the corner. An apartment with a view, a great new wardrobe, and a new car are surely just a paycheck away. Unfortunately, when that unexpected first bill for those student loans taken out four years ago arrives, reality quickly sets in.

Even if a graduate is fortunate enough to land a job in his career, money coming in will likely go out even quicker. A crippling student loan payment can hamper a person’s budget or even lead to more debt if a credit card is utilized to make ends meet.

If a student loan is necessary, however, being informed about different student loan options and choosing the best fit for your personal needs is critical. Consulting online resources, such as SimpleTuition, to research different options for student loans is extremely helpful.

Being Proactive

Sitting down in the early years of high school to create a plan for paying for college is an excellent way to proactively combat student debt. Students and their parents are making the decision to have the entire four-year college experience paid off before even graduating high school.

This takes a lot of planning and some sacrifice on the part of the student and family, but the benefits far outweigh the drawbacks. For one, completing college with no acquired student loan debt will provide a larger amount of money to be available for other expenses.

Interest on federal student loans often does not begin until after college graduation. However, once the interest begins, a majority of the payment will first be applied to the interest. The principal is hardly touched at all, leading to a longer time necessary to fully pay off the loan.

College is an excellent opportunity to learn and grow into a more educated person. While cost is an important factor in choosing to attend college, money should not inhibit anyone from earning a higher degree. Pre-paying for college or taking out a reasonable amount of student loan debt are both feasible options for students.

Sources:

SimpleTuition — http://www.simpletuition.com/student-loans/guaranteed/

Freedomthirtyfiveblog — http://www.freedomthirtyfiveblog.com/2013/09/go-with-flow-student-loan-debt.html

Student Loan Info — https://www.consumer.ftc.gov/articles/0160-student-loans

Leave a Reply

avatar
  Subscribe  
Notify of