There are many college students who graduate from school and find that they are already in debt. This is not an ideal situation to be in when starting one's professional career. However, there are more graduates in this predicament than ever before. According to Nellie Mae, the largest producer of student loans in the U.S., the average undergraduate has $2,200 in credit card debt. If you think this sounds low, you need to consider that many undergraduates work part time or not at all.
Below are eight ways a college student can avoid substantial debt. Perhaps this advice will help young adults begin their post-graduate career with a clean slate.
1. Plan Ahead – Planning ahead for college means considering the costs of each school you apply for, as well as scholarships and grants. If you keep your grades up while you are in high school, this will open many doors for you and perhaps save some money down the line.
2. Begin With Community College – If you are a college-bound student, you may want to reconsider starting out in a major university. By attending a two-year community college first and then transferring over to a four-year institution, you will have saved thousands of dollars.
3. Consider a Work-Study Program – If you only plan on having a part-time job while attending college, then you should find work through your school. A work-study program can offer many perks, such as experience in your field, and you will be able to easily work around your school schedule.
4. Avoid Student Loans – Whenever possible, that is. Student loans should be considered a last-case scenario, as grants and scholarships are much more desirable forms of financial aid. Be sure to complete a FAFSA form each year, you may be eligible for aid with no strings attached.
5. Use Credit Cards Wisely – Most young adults have zero credit, which can be as dire as having bad credit. By obtaining a credit card and using it, you will establish a credit history. This is a positive thing, as long as you pay off your balance each month. If you must carry a balance from one month to the next, always pay more than the minimum amount when you receive your statement.
6. Live Close to Campus – You can eliminate commuting costs by walking or bicycling to class. If you also work on campus, even more money will be saved by this short commute.
7. Spend Frugally – These are the salad years, so don't expect to eat a steak dinner every night. In fact, you should be practicing frugal habits in every aspect of your life. Although it may not seem like fun, you will save yourself years of stress by being sensible now.
8. Take Advantage of Student Discounts – Many establishments surrounding a college will offer discounts to students. Some places may not boldly advertise the discount, so don't be afraid to ask wherever you go. This can actually save you a lot of money over the years.
Unfortunately, many college students readily incur debt with the notion that they will quickly start a career and immediately pay off the debt. This just isn't how it happens for most people, though. The credit card and student loan debts you are building now will likely haunt you for years. Graduating from college with zero debt isn't a pipe dream, however. By following the above advice, you can manage your money during college and emerge from school with total financial freedom.
By-line:
Heather Johnson is a freelance writer, as well as a feature article contributor for Reward Programs, a site which reviews credit card rewards, and specifically helps consumers understand Discover rewards. Heather invites your questions, comments and freelancing job inquiries at her email address heatherjohnson2323@gmail.com
