How Big are your Student Loans

By Steven R. Brooks

College is not cheap. In fact, the cost just seems to keep going up and up. Very few people can actually pay for the entire cost of college out of pocket. Students look to financial aide, grants, scholarships, and loans to pay for college. Student loans are one of the most common ways to pay for college and most college students graduate with student loan debt.

How much student loan debt do you have? When you go for student loans, you will first go for government loans. They offer the Stafford Loan which gives the most money at the lowest rate. If you are in financial need, you can get the Stafford Loan subsidized and not have to pay any interest while in college.

Once your government loans have run dry, you will need to look for other loans. Your parents could get a loan, you could go to a private student loan service, take out a second mortgage, or use a credit card. I recommend that you don't take out a second mortgage unless you absolutely have to and I highly encourage you to NEVER use a credit card to pay for college.

You may want to look into going to a cheaper school. Cheaper schools are usually state colleges and only cost less because the government pays for part of it. Often state schools are actually better than many more expensive private schools.

How can you minimize your loans? The best way to have less loans to pay back is to not take them out in the first place. Unless you are a genius and must go to an Ivy League school, there's no reason why going to a state school wouldn't be smarter for you.

You can save even more money if you go to a community college for two years first and then transfer to a state school. State schools are cheap, but community colleges (which are state schools too, but they are only two years as opposed to four) are often have the price.

If you can, go to a school nearby, live at home and commute. You can save a lot of money not having to pay for room and board. Many people find living in dorms overrated anyway. At my college, most students ended up getting their own apartments after the first year because they didn't like the dorms. If you stay at home, your parents will continue to support you just as they were before and it won't cost you extra for school fees.

A final way to pay for college is to work. Get a part time job during the semester and work full time over break to save the most money possible.

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