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Amy Nickson On 12th Sep,17
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How can students avoid debt while getting a college degree

A large number of working middle-class American families are agreeing to the fact that funding the college of their children is becoming difficult.

Most of the students are funding college studies on their own.

The steep rise in the college education fees is driving the college students to trade CDs, textbooks and clothes, and earn money to finance their grades.

The growing cost of education is forcing the students to choose a bad career to immediately boost their income level.

College students are either borrowing federal educational loans from the US Department of Education or personal student loans from private organizations.

Those who can’t afford either of the two options are quitting college altogether.

Borrowing a student loan is now the only way to fund higher studies.

However, the main concern is, taking out the student loan is not enough, students have to pay them off.

After completing the studies, most of the students are unable to pay off the student loan debt due to low income or poor financial management.

So, it is better to avoid additional debts while in college.

Avoiding debt altogether while studying is difficult but possible.

Here are 7 ways students can fund their college education without falling into debts.

1. By staying within means

Most students, nowadays, stay out of state with their friends and they tend to adopt a lifestyle that is beyond their means.

No matter what amount of income they earn from their part-time jobs or from their allowances, their expenses are always beyond their means.

This habit should be changed because it pushes you further into the vicious cycle of credit card debt.

2. By following a budget

You should follow a budget and keep a close track of n your money.

Unless you know where your money is going in a particular month, you can never be able to restrict your expenses.

Eliminate all unnecessary expenses from the budget so that you can devote your dollars only on the things you need.

3. By reducing unnecessary usage of credit cards

If you think that whipping your plastic is the latest trend, you’re grossly mistaken.

The nasty little plastics that seem to be a relief while shopping is actually debt generators.

The more you use a credit card for purchasing things, the more you’ll find yourself in the debt trap.

Use cash instead of credit card, as much as possible, and control yourself from getting things with credit when you can’t afford it with cash.

4. By saving money aggressively

This is one of the golden rules of living a debt free life from the beginning of your career.

Whether you’re a graduate or an adult or a senior citizen, there’s no alternative to saving money.

Experts advise people to save at least 10% of what they make in a month so that they have enough to make ends meet.

5. By applying for scholarship as soon as possible

It has been often seen that most scholarship programs and grants are offered at first cum first serve basis.

Thus, if you want to be among the lucky ones, apply early before the offer is out.

6. By spreading your scholarship search wider

Getting the scholarship is not easy; you need to pass the eligibility criteria.

However, you will find many types of grants and scholarships. You may obtain one that fits you the best.

You just need to search on the internet to get updates.

7. By leading a frugal life

Most personal financial experts recommend that there is no substitute to leading a frugal life, whether they are students or adults.

Frugal life doesn't always mean depriving yourself; it just means making the best use of your pennies.

You must know how to differentiate between your wants and needs.

It is important to keep a firm grip on the money so that you don’t lose control on it.

Lastly, most of the students are too casual about their finances and neglect their monthly fees and payments.

Thus, they soon fall into the sea of high-interest debt while studying.

Remember, by opting for an inexpensive college or living at a cheap hostel, you can avoid taking out a new loan.

It is important that the students become serious about their finances to stop being pushed into a debt cycle while in grad school.

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