3 answers
Rachel
Student
Roxbury Township, New Jersey
1
Question
Updated
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What is the best way to manage finances while being in college?
My worst fear is being in a devastating amount of debt. Should I invest my money into a 529 Savings Plan? In addition, what is the best type of student loan to take out that won't plunge me into a financial crisis? Thanks!
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3 answers
TRAVIS UPCHURCH
Federal Contract Admin
301
Answers
Austin, Texas
Updated
TRAVIS’s Answer
If you are still in high school, take dual credit or AP courses to save the money you would spend on tuition for those classes. Additionally, consider taking CLEP tests for other course credits. It is a great way to get credit for general studies courses and to do it cheaply. Consider applying for grants for your education. That may require you filing your own taxes to qualify. There are other ways to pay back school loans based on the type of education and career you purse. Each is different. Some are specific to states or current federal rules. You may also consider any of the many different military options as they offer tuition too. Good luck and stay focused. Try everything. You will do well.
George Katsinis - AFC®
Personal Financial Counselor
68
Answers
Salem, Oregon
Updated
George’s Answer
Avoid debt as much as you can because it can harm your future. Keep any debt you have as low as possible.
A 529 plan lets your money grow tax-free over many years, which is usually beneficial. But if you need the money soon, investing can be risky since the market can go up and down quickly over the short term.
If you have some extra money, consider putting it in a high-yield savings account. These accounts currently offer interest rates around 3%, which is better than the less than 1% you'd get from a regular savings account at a local bank or credit union.
To find out if you qualify for financial aid like grants, loans, or work-study, fill out the FAFSA. Subsidized loans are the best option because they don't charge interest while you're in school, and repayment starts six months after you leave. They also offer income-based repayment plans and may have forgiveness options in special cases.
A 529 plan lets your money grow tax-free over many years, which is usually beneficial. But if you need the money soon, investing can be risky since the market can go up and down quickly over the short term.
If you have some extra money, consider putting it in a high-yield savings account. These accounts currently offer interest rates around 3%, which is better than the less than 1% you'd get from a regular savings account at a local bank or credit union.
To find out if you qualify for financial aid like grants, loans, or work-study, fill out the FAFSA. Subsidized loans are the best option because they don't charge interest while you're in school, and repayment starts six months after you leave. They also offer income-based repayment plans and may have forgiveness options in special cases.
Thank you so much for your advice! What platform is best to open a HYSA account?
Rachel
My preference is Capital One 360 Performance Savings
https://www.capitalone.com/bank/savings-accounts/online-performance-savings-account/
A great app. VERY easy to use. Only a $10 initial deposit is required. Easy to set up automatic deposits, Powerful to be able to set up many different accounts and name them for specific goals.
George Katsinis - AFC®
Lin Yu Hao
software developer.
14
Answers
Kaohsiung, Taiwan
Updated
Lin Yu’s Answer
It’s completely normal to worry about debt and managing finances in college. Planning ahead shows you’re being responsible about your future.
Some strategies you might consider:
Budget carefully and track your income and expenses.
Build a small emergency fund to handle unexpected costs.
Apply for scholarships and grants to reduce the need for loans.
A 529 Savings Plan can be helpful if your family can contribute — it grows tax-free for education.
Federal student loans are generally safer than private ones; borrow only what you need.
Consider part-time work or side hustles to supplement income.
Learn about personal finance, budgeting, and investing to make informed decisions.
Some strategies you might consider:
Budget carefully and track your income and expenses.
Build a small emergency fund to handle unexpected costs.
Apply for scholarships and grants to reduce the need for loans.
A 529 Savings Plan can be helpful if your family can contribute — it grows tax-free for education.
Federal student loans are generally safer than private ones; borrow only what you need.
Consider part-time work or side hustles to supplement income.
Learn about personal finance, budgeting, and investing to make informed decisions.