Student loans in the US are growing at a rate six times faster than the economy, with the average student owing nearly $40,000, according to EducationData.org. But there are ways to avoid this debt trap. Here are some strategies to consider before, during, and after your college years.
Before You Apply
Start planning for college expenses while you’re still in high school.
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Get Good Grades: High-achieving students often receive financial aid like scholarships and grants that don’t need to be repaid. So, keep your grades up and prepare well for the SAT or ACT.
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Take Advanced Courses: High schools often offer advanced placement (AP) or International Baccalaureate (IB) courses that can earn you college credit. These courses can help you skip some college classes, saving you money.
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Start Looking for Scholarships and Grants Early: Many organizations offer scholarships to students who meet certain criteria. Start your search online and talk to your high school guidance counselor for leads.
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Work and Save for College: The sooner you start saving for college, the better. Consider part-time jobs after school and full-time work during summer breaks.
Choosing and Applying to Colleges
Be strategic about the colleges you apply to.
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Consider Free Colleges: Some colleges in the U.S. offer free tuition. You only pay for room and board and living expenses.
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Start at a Community College: Attending a community college before transferring to a four-year university can save you thousands of dollars.
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Consider Online Universities: Online education has become more mainstream and can be a cost-effective option.
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Apply for Honors Programs: If you have a strong academic record, consider applying to college honors programs, which often come with tuition discounts and other benefits.
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Apply to Prestigious Universities: More expensive and prestigious colleges often have more funds available for grants and scholarships.
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Consider Studying Abroad: Universities in other countries often have lower tuition fees than those in the U.S.
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Fill Out Your FAFSA Early: The Free Application for Federal Student Aid (FAFSA) can help you qualify for financial aid. Submit it as early as possible to increase your chances of getting grants.
While You’re in School
Once you’re in college, there are still ways to avoid student loans.
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Take College Courses in High School: You can start earning college credits while still in high school by taking college courses.
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Negotiate Tuition: Don’t be afraid to negotiate your tuition with the college’s admissions office.
After Graduation
Even if you’ve taken out student loans, there are ways to manage your debt after graduation.
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Look Into Loan Forgiveness Programs: The federal loan program offers several loan forgiveness programs that can help you manage your debt.
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Find a Job That Offers Student Loan Repayment: Some employers offer student loan repayment as a benefit.
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Form an Aggressive Repayment Plan: Make a plan to pay off your loans as quickly as possible to avoid paying more in interest.
Remember, the key to avoiding or reducing student loan debt is to start planning early and be proactive about seeking financial aid and scholarships.
