According to The University of the People, “With almost 70% of American college graduates dedicating on average, 18% of their salaries to it –the student loan debt crisis has never been greater.”
You might feel terrified and uneasy when you hear the words “loan” and “debt.” That’s normal. While there are some people who have not actually tried borrowing money in their lifetime, there are those who can’t escape it. Borrowing money from others at least once or may be a couple of times in the past to make ends meet is not something you should be ashamed about. This is especially true when you aim to use the money in the pursuit of higher education. There is not contest to the statement that while going to a college or university is costly, it’s advantages far outweigh its disadvantages.
A lot of young people are in the situation where they find it difficult to ask their parents to fund their tertiary education as it will add to their parents’ financial difficulties; however, it is worth discussing the different options with them. Their parents might have insights that they don’t have. For example, in the case of student loans, parents often don’t need to pay anything themselves, they only need to stand surety for student loans.
In a nutshell, the pursuit of knowledge and building one’s skill is so important for the advancement of humanity that a lot of schools offer student loan programs to help dedicated students.
Points to consider when applying for a student loan
If you are planning to apply for a student loan program and you are getting quite overwhelmed with its amount, you might want to consider the following guidelines:
- Look at education not as an expense but an investment.
When you look at it closely, the Return on Investment (ROI) of education exceeds its cost. Earning a college degree will give you a lifetime of earning. If you think this way, you’ll feel less guilty about taking out a student loan.
- Decide on the payment plan that suits you.
After your graduation, you have to decide on what payment plan will suit you. It’s important to remember to negotiate a monthly amortization amount that you can handle.
- Live an economical lifestyle.
Your lifestyle has a direct impact on your finances. You might be earning a lot of money but still end up being broke. It is best if you stick to a monthly budget so you can have more control over your finances. Limit your expenses and save up to pay for your student loan. Move to a cheaper apartment, cook your food at home instead of dining out, and shop during mall or store sales, etc
- Earn more money.
You might be receiving a fixed income for a fixed job. If this is the case, think of ways to earn more. If you have extra hours for part-time jobs or starting up your own business, then think about the skills and talents you have and use them to earn the extra money for your loan repayment. You can tap into freelance writing, tutoring, or other consultation services.
- Check for areas that offer loan forgiveness.
Loan forgiveness is usually offered if a particular college or university needs your skills and knowledge. They might require you to stay there for a certain period instead of paying the whole amount of your loan.
There is nothing wrong about prioritizing your education. It is, in fact ,vital for you to prioritize your education. A quality education will open a lot of doors for you. You just need to decide how you are going to pay for your education.