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A lot of our youth are graduating from college with a lot of debts to their name. Student loans get most of the graduates through to college and that is one of the biggest debt problems that they are facing. They accumulated this debt even without a proper job yet. That is why their first decade of earnings will have to carry the burden of paying off these college debts.
With their money tied up with debt, they are unable to make investments early on in their life. It is difficult for them to buy a house, a new car and other things that will make their lives more comfortable. Some of them are even delaying life events like marriage or parenthood because they know that they have to prioritize paying off these student loans.
This is why a lot of incoming college students today are trying to find ways to go to college without having to apply for any college loan.
This issue came further into the limelight when Germany recently announced that all their universities will be free to all students - local and international. According to the article published on Thinkprogress.org, higher education across the country is now free for all. The tuition fee was actually already low to begin with. But with this announcement, it is not more possible for financially struggling students to get an education.
Of course, not everybody is open to the idea of going to another country to get an education. Some parents are not ready to let their kids go too far while other kids are just too immature to be left alone in a new country.
That only means they must find a way to try to go to college without getting into any, if not a lot of student loans.
The good news is, there is a way to go to school without college debt - as long as you know the difference between fact from fiction.
Common myths for those who want a college degree without the debt
According to an article published on WSJ.com, the Class of 2014 is now the most indebted class. The average debt that a graduate has to pay off is at $33,000. This will take more than the standard decade to pay off for some graduates. If compared to the debt 20 years ago, this average debt is almost double than what they had to pay back then.
Getting into college without student loans is not impossible but you need to understand your options. Some incoming college students can actually qualify to get higher education without debt - but they failed getting it because they believed in a couple of misconceptions.Misconception 1: Community colleges do not have scholarships.
Despite the fact that they charge really low tuition fees, that does not mean these colleges forego scholarships. They still give this away to qualified students. Even if it is a $1,000 scholarship, it will still help you spend on other expenses apart from your tuition fees and books. Anything that you save here can be put aside to grow in an investment fund for two years. That way, you can use the money to pay for your schooling once you enter into a state or for profit university.Misconception 2: The only way to avoid student loans is to go to a community college first.
In truth, going to a community college will decrease the chances of you needing a student loan. However, this is not the only way. There are a lot of schools out there that offer scholarships to qualified students. State universities offer great scholarship programs if you have the talent and grades to qualify for it. You may want to ask your high school counselor to give you a list of scholarship programs that you can apply for so you can identify the schools that you can qualify to go to. If you do qualify, you do not have to go through the hassle of going to two schools just to complete your education without student loans.Misconception 3: Students can only financially prepare for a debt free college education.
This is true - you need to be financially prepared to go to college without debt. However, that is not entirely true. There are students who can go to college even if they or their parents did not prepare financially for it. If they did good in school, it will be easier for them to get a college education without the need to borrow money.Misconception 4: Filling out the FAFSA is only to get help for student loans.
According to StudentAid.ed.gov, the federal government’s student aid program offers financial aid in various forms. If the parents of the child serves in the military, he or she is qualified to get aid from the government. You can also apply for work study and tax benefits to lessen the load. If you get a grant, it will help you pay for your college education without borrowing money at all. So do not skip that FAFSA (Free Application for Federal Student Aid).
Strengthen your financial position despite student debt
It is really a dream of high school students to go to college without student loans. However, the reality for some students is, they cannot escape borrowing money to go through college. Sad as it may seem, there are those who really have no choice about it. While a lot of scholarships and grants are there, not everyone qualifies for it.
So if you are one of these unlucky few, do not lose hope. There are still ways for you to demolish student loan debt - or at the very least, minimize the negative effects of the debt to your financial future. Here are some tips that we have for you.
- Get a job. Believe it or not, you will not spend every waking moment of your college life studying. You will find a lot of free time that you can use to earn some decent money. You can use this money to help pay off some of your expenses. Or you can use it to grow your savings. If you borrowed money, you can pay it off while you are still in school. That should lessen the amount that you have to pay off when you graduate.
- Do not accumulate more debt. Some college students get into trouble because not only do they have student loans, they also have credit card debts. There are many things that you can do to cut credit card debt but it all begins with you being wise about how you use it. We are not really saying that you do should not use your credit card. You can do so to help you build up your credit score. However, make sure that you can pay it off immediately so you do not accumulate a balance on it.
- Budget your money. Whether your money is coming from student loans, your parents or your part-time job, make sure you learn how to budget it. That way, you can prioritize your payments and eliminate those that are unnecessary. It will also allow you to monitor if you are going beyond your means or you are doing alright with your money. Through your budget plan, you can see if your money is already running short. You can do something about it before you run out.
If you need help with your student loans, National Debt Relief offers counseling to those who want to solve their debts. The service includes helping the borrower find the best debt relief option that will help them pay off their student loans. The company will even help you with the documentation. This will only cost you a one time service fee that you do not have to repeat. It will be placed in an escrow account that will only be released when you are satisfied with the paperworks done by the company. There are no upfront or maintenance fees.