Paying For College

A college student’s first step should be figuring out how to pay for college. Typically, there are four options available. The first two are the most coveted as they do not require you to pay back anything. Scholarships and grants are given to students of all ages. They are based upon a wide variety of factors including, but not limited to, age, major, college, gender, ethnicity, location, income and religion. Always check with your employer, local clubs and church for possible scholarships.

The third option is in the form of student loans, which cover anything school related. Some loans are public and provided through government assistance. Private student loans are provided through various banks and even colleges themselves. Interest rates vary based upon the amount and whether a parent co-signs. Luckily there is now a cheaper payment plan available through the College Cost Reduction and Access Act that allows students to repay their loans based upon their income. Most student loans are not due until the student graduates, though some offer a payment plan throughout college to help reduce the debt before graduation.

The fourth option involves paying all fees and tuition during college. This saves hundreds of dollars in interest later on, but can be hard if money is not available at the time. Most colleges have a tuition payment plan allowing students to pay only a portion of the payment upfront and the rest at regular intervals throughout the school year.

Saving Money While On Campus

Once college itself is paid for, there are still other expenses, such as entertainment, books, food and gas. The first rule college students should follow is to avoid credit cards if at all possible. They offer too much of a temptation to simply charge something, thereby increasing the student’s debt. Instead, they should look for a free student checking account. They can then pay for purchases with checks or debit cards without going into debt.

Always take full advantage of your student ID. This card can get you significant discounts at theaters, local restaurants and on campus activities. Students can save hundreds of dollars on entertainment alone by using their student ID and taking advantage of on campus activities. Whenever possible, you should buy used. This includes textbooks, clothes, music and anything else you might need. Used items can be found both online and off. Spending more doesn’t make a difference.

Consider having a night in; a cheap takeout and a rented movie are far cheaper than actually going out. The best way to save is to simply keep track of your expenses and stick to a strict budget that is set at the beginning of each semester.

For any of you out there that feel the same way, you might want to check out this infographic that the designer at eCampus.com put together for us as her way of making information beautiful.

Source: eCampus.com | Bonus Referral Code: EE15395 for extra 5% off

College Credit Cards on Spot – Chicago Tribune
New Program Erases Student Loan Debt – The Mercury News
Rates Dropped July 1 on Some Student Loans – Cleveland Daily Banner
Graduates Need to Go on a Strict Debt Diet – The Courier Journal
College Guide Answers Questions for South Carolina Families – GreenvilleOnline.com

This week, I want to talk a little bit more about the last article. The news story points to a Guide that is free to anyone, but is supposedly geared toward people from South Carolina. The guide can be found directly by going here. It’s all about finances and college and the suggestions and information included are good for you wherever you live. I will warn you that the guide is 125 pages long, but very worth it. You can see the titles of the chapters below.

Chapter 1: Preparing for Success in College
Chapter 2: Navigating the College Admissions Process
Chapter 3: How Can I Afford College? Solving the Financial Aid Puzzle
Chapter 4: Understanding College Savings and Investment Choices
Chapter 5: Working through College: Is a Job Part of Your Investment Plan? Chapter 6: Maximizing Your Investment Return: Planning for Career Success
Chapter 7: Investment Costs: How Tuition and Fees are used at Institutions Chapter 8: The Public Investment: The SC Funding Process for Higher Education

I would suggest you go to the site and you download the guide and start processing through it in your free-time. I haven’t read it all, but what I’ve seen has been good and insightful. Give it a look for yourself!

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