Managing Student Debt: A Few Hacks
Everyone who hasn’t been living under a rock knows that student loan debt is at an all time high. You probably know more than one person who has already graduated and is struggling to pay their student loans. Heck, you likely have your very own student loans to worry about. Because the cost of tuition continues to rise, almost every college student in America needs some degree of financial assistance to manage a bachelor’s – or even an associate’s – degree. Heaven help you if your career aspirations make further schooling necessary.
So if you are seeking a hack or two to help ease the situation, you are not alone. Where and how can you find financial help for college? Here are a few tips:
Always start by consulting your school’s financial aid office. If you apply to a college, they’ll often send you a financial aid package with your letter of acceptance, which should give you some idea of the scholarships and financial aid the school can provide, as well as how much you will need to borrow. Call them and ask if there are any contests you can enter to earn more scholarship money. There may also be the possibility of an on-campus job if you qualify.
Look for scholarships and grants in your community. Many places of worship and associated religious organizations, employers, and other community-focused organizations offer scholarships. Ask around about these, and also look online at www.finaid.org. Don’t apply for anything that requires you to send money – these are almost always scams that will take your money and disappear.
Stay informed on the laws surrounding student loans, because they change often. Student loan forgiveness can be a big issue in American politics, and the laws surrounding it change often. New opportunities may be created that you can take advantage of; but programs may change or end too. In general, some federal loans make you eligible for certain types of relief not available through private loans. Stay in touch with your school’s financial aid office to stay current on any changes that may benefit you, especially if your financial circumstances change.
Can your parents help you by taking out a loan? There’s no shame in going to your parents for help if they have the means. If they are homeowners with a significant amount of equity in their home (which is sometimes the case if they have been in the same home for a while), they may be in a position to take out a home equity loan, since the interest rates on such loans are usually low. Home equity loans sometimes have advantages at tax time, too. But there are risks, and every homeowner’s situation is unique, including your parents.’ It never hurts to ask (at least we hope not!). Also, don’t be shy about asking relatives to give you money instead of gifts on birthdays and holidays, either – every little bit helps!
Be thoughtful in exploring options and take care to improve your short-term position without causing long-term pain. For instance, note that there are many illegitimate scholarships out there. If something sounds too good to be true, it probably is. For a guide to spotting these shady enterprises, check out our article on avoiding scholarship scams. Get help from the resources mentioned above, and remember you are never alone!