Tag Archive: saving money

Cash-Strapped College Part 3: Now what?

Cash

This is the last of a three-part series on how to save money on your education. Find the first post here, and the second here.

 

I believe more congratulations are in order if you are reading this section. You’ve suffered through 4-5 years of undergrad and you’re looking toward the future. Maybe you are a bit more weathered and a bit less bright eyed and bushy tailed about the future, but you’re here and you’re going to make the best of it.

 

Dealing with huge loan payments in an already dismal employment market can be back breaking. On top of the car payment, credit card payment(s) and cell phone bill, you now have to start paying for that sheet of paper on your wall that says you learned something. But don’t fret too much—you do have options.

 

STAY IN SCHOOL: This is the first option many consider and as counter intuitive as it may seem, the idea has some merit. While sticking around for grad school or another BS/BA may easily double your debt, it also allows you to defer your payments until you graduate. While this tactic obviously digs the hole even deeper, it buys you time. Time to get more education, more internships and presumably a competitive edge in the job market. It also buys you time outside of the job market in the hopes that when you are finally forced from the warm cocoon of college life into the unforgiving “real world” that the job market will have improved.

DEFERMENT: Instead of staying in school to defer your debt, among other reasons, you can also defer your debt for other reasons that don’t come with more student loans. Besides student enrollment, deferment comes in two other flavors that you should know about: economic hardship and unemployment.

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Cash-Strapped College Part 2: Once you’re there

Cash

This is the second of a three-part series. Find the first post here.


Congratulations, you’ve been accepted to college and secured enough scholarships, loans and savings to enroll. Now you get to explore the large and exciting (and parent—free) world that is college life. Chances are this will be your first time living away from your parents and it’s probable that you’ve never managed your own expenses before. With all the freedom that college offers, it can be easy to forget that you don’t always have the finances to explore all of that freedom. 

 

By this point hopefully you’ve sat down with your parents, or at least had a serious discussion with yourself, and created a monthly budget. It’s important to not only plan for your known expenses but to have enough wiggle room to accommodate unforeseen expenses like car repairs, replacing stolen property or even late night pizza for your “study group.” With that in mind, it is important to cut corners where you can because every penny you save is a penny you don’t have to borrow and pay back later at 12% interest.

 

Here is your guide to pinching your pennies at college.

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