Graduating with too much debt can be a real problem that can take decades or more to overcome. You’ll also have to put important life events on hold, such as buying a house, getting married, or building wealth.
You’ll be more pressured to get a job that pays better instead of a job that matches your career goals. Sometimes, you may have to move in with your parents and live a stringent lifestyle.
The main point is that student loan debts can limit your desired goals after graduation and a solid future. However, this guide will show you proven-method ways to minimize your student loan debts. That way, you can focus on your life goals after school.
1. Apply For Grants And Scholarships
It’s crucial to fill out your Free Application for Federal Student Aid (FAFSA) and apply for the Pell Grant each year if you qualify. That’s because numerous schools search for this information to help determine needs-based scholarships. It would be beneficial if you also looked out for college-specific scholarships and state grants.
Did you know there are some universities with scholarship opportunities that can cover almost all of your tuition?
Let’s take an example. Class of 2023 students in Stanford University whose family’s gross income was below $65,000 acquired an average of $78,309 in scholarships and grants. For a whole year, that covered 99% of all expenses.
If you don’t have perfect grades, that’s fine. You don’t need them to get the scholarships. What you have to do is research the grants and scholarships to know which ones you qualify for.
Need help?
Get in touch with your teachers or professors, financial aid officer, and academic advisor. Each of these people may have various ways that you can qualify for.
Related: 7 Tips to Save Money by Grabbing the Student Discounts
2. Get A Job While In School
Yes. Getting a job can help you minimize the amount you’ll need to borrow for your education. With a part-time job, you can reduce the amount you need to borrow for your living expenses. You can also use the amount you make to cover the tuition cost.
Some students perform better in school when they have a well-structured schedule that includes a part-time job. If you’re one of them, that’s great news!
Some employers even offer tuition reimbursement. This means that your employer will pay a specified amount of your tuition and classes every year. You may have to follow some guidelines for the types of classes they cover or maintain a particular GPA.
Using the tuition reimbursement can help you earn decent money and cover part of your tuition. Another alternative is the federal work-study. It’s a program where you work part-time as a graduate, undergraduate, or professional student.
However, keep in mind that work-study jobs are highly based on first-come, first-serve, and not available at every school.
3. Consider An Affordable School
Maybe you want to attend a private university or college. But the problem is that you don’t have the grants and scholarships to cover the tuition cost. If that’s the case with you, consider a two-year or four-year state school.
A good state college where you’re eligible for in-state tuition can make your college more affordable than a private school that’s usually high-priced. You can significantly decrease your cost of education when you attend a community college, depending on your career goals.
Consider this: during the 2019-2020 academic year, four-year private colleges’ average tuition was twice as expensive as in-state tuition for four-year public schools. Hopefully, this can give you a clear view when deciding on your options.
4. Reduce Cost On Living Expenses
Many schools expect students to live on campus, particularly in the freshman year. But there are exceptions. In most situations, staying on campus means paying one price for food, utilities, room, and internet.
When you stay off-campus, you have to pay each of the expenses separately, most of the time. If you live by yourself, you could pay more than you would if you lived on campus. That’s why it’s a good idea to split rent with roommates.
You can also consider the neighborhoods around the campus. They may have apartments that college students can use and may allow you to sign different leases and help split utilities. Aside from splitting utilities and rent, there are numerous methods you can use to monitor and minimize your expenses:
- Create a budget
- Save small for an emergency fund
- Know the difference between wants and needs
- Overestimate expenses
- Underestimate income
5. Don’t Buy A Car. Use a Public Transport.
It’s nice and comforting to have a car. However, it may not be necessary while you’re in college. You can generally find public transports around universities, and you can find someone to take you to where you want, like the shop.
When you refuse to buy a car, for now, you can save on maintenance and gas, parking costs, insurance cost, and car payments. Statistically speaking, monthly transit passes are much cheaper compared to owning a car.
Final Thoughts
You should keep in mind that reducing or getting rid of your student debts requires an in-depth plan for minimizing your college costs. Applying for scholarships and grants can cover most of your tuition costs, sometimes all of it. All you need to do is research to find what you qualify for.
We also recommend that you consider public schools instead of private ones. You can reduce the cost that way.
