Student Loans Account for More Debt than Credit Cards
A few weeks ago, I read something rather interesting on Consumerism Commentary: Student loan debt is now more prevalent than credit card debt. Part of the increase is no doubt due to ever increasing rates of tuition. And, as tuition rises, the true value that you get for your money in college is likely to decrease.
Another trend that is on the rise is the increasing popularity of private student loans. As tuition goes up, government student loans cover less and less of the expenses related to attending college, and private student loans are taken. These loans have higher rates of interest, and can increase the overall cost of attending college.
There, however, ways that you can pay for college, or save money on your costs. Here are some things you can do to reduce your dependence on student loans when it's time to go to college:
- Save up: Set money aside ahead of time, using a 529 plan or Coverdell plan that can help you save more efficiently.
- Part time job: A part time job in college can be a great way to reduce your need for student loans.
- Scholarships and grants: Free money is a one of the best ways to reduce your student loan debt. Work hard in school before college so that you are more likely to qualify for scholarships. Also, look around for little known scholarships and grants. If you can get several small scholarships, you will notice that they start to add up.
- Start at community college: My husband started out a community college because it was less expensive. After two years, he had good grades and was able to get a transfer scholarship to a four-year school to finish up. Even if you don't get a scholarship at the end, starting out small can be a good way to save a little on your costs.
- Live at home: You can live at home for some of your college career, saving on living costs and other related costs.
