2 answers

If going to college puts you in major debt, whats the best way to get out of it?

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My family is sacrificing a lot by sending me to college and of course I feel guilty. I feel pressured to try my best and excel as a student, but doesn't everyone? Financial assisntance is part of the road to success and if going to college doesnt pay off the debt that it may put you in, can it really be worth it?

#financialaid #collegefreshman

2 answers

Matthew’s Answer

Updated
I did finance my own college through student loans and I can say first hand that it was worth the investment. The first thing I would recommend is to look at the statistics for job placement and potential salary for the major or position you are pursuing. This should give you some insight into what you will be making once you graduate and from that you can create a budget to pay down the loans. One of the best pieces of advice I received regarding loan repayment is to live well below your means for the first few years after your graduate. During this time you will want to focus on building a strong financial base by creating a budget, starting a retirement plan, and saving for the future. It will be tempting to buy big ticket items, like a new car, but it's much wiser to invest and save early on and work to pay back any loans first before you reward yourself.

Sophie’s Answer

Updated

Treat student loans as any other monthly payment. Make sure to mark your calendar for when the loan payments are first due. This will almost always be after you've graduated. Work on saving money while in school, even if it's just $10 a month, because this will give you a bit of money to work with once you graduate and have to pay for housing and loans as well as other expenses. Planning for what future costs you'll incur will always alleviate stress overall.

Sophie recommends the following next steps:

  • Make a calendar of fiscal requirements over the next four years and try to plan where the money will come from and when you owe repayments.