This week’s guest blog post is by James Smith.
Student loans have become a real menace for young adults today. While tuition keeps soaring, students keep racking up huge amounts of debt which can follow them all the way into their 40s. For some however, student loans are quite manageable; for others, they are quite a pain. Here are some ways students nowadays find themselves in huge debts before they even graduate, and how you can avoid them.
Blowing Through Your Student Loan Cash
Rather than utilizing financial aid for books, educational costs, room and board, numerous students will back their indulgent lifestyle of partying, clothes, devices, and eating out. These school loans you’ve worked so hard to get ought to be paying for your education, not you social life…so utilize the cash astutely.
Credit Card Debt
Indeed, even mindful grown-ups can pile on some weighty credit card debt, yet students, who have no reasonable salary other than their school loan money, and what money their parents give them, should not be getting into credit card debt. This is a formula for credit disaster, since students won’t just have their school loans to reimburse when they graduate, but also have huge credit card balances.
Not Paying Your Bills on Time
Racking up gigantic credit debt and not paying your bills on time is an approach guaranteed to make it difficult buy a car or lease an apartment after you graduate. Keep the credit cards to a minimum, and pay your bills on time to keep your great credit rating. You’ll thank yourself in a couple of years.
Being a college student for the most part means living on a fixed income. Whether it’s your financial aid cash or cash from part-time work, or even money from mom and dad, your income is generally restricted and setting up a financial plan is critical. A month to month spending plan doesn’t mean you can’t do the things you need to do, yet it assures that you know the “must-pays” will really get paid. Make sense of precisely what bills and costs you have each month and arrange to pay those first. Any cash over and above that you can spend for social/recreational things.
Heading off to a College That’s Pricey
Rather than heading off to your community college for your pre-req classes and burning through $25 a unit, numerous students feel they need to go to the 4 year college straight out of high school. Numerous students end up returning home and setting off to a community college anyway. Going to a nearby, reasonably priced, school first is a decent approach to spare cash, and get those required classes checked off your list cheaply. After you’ve finished these courses, transfer to a 4 year school to finish your college degree. This will spare tons of dollars that you would have piled on student loans, and been paying off a long way into your 30′s and beyond.
Such a variety of awful financial decisions students make is an aftereffect of lack of basic financial education. Students haven’t been taught by their parents or teachers the significance of keeping up a decent credit score, paying bills on time, and planning expenses. Astute spending amid the college years will guarantee that the cash you make in the wake of graduating will be spent on things you need and want, not for credit card payments and student loans.
James Smith is a passionate blogger who loves to write on trending topics. Currently he is conducting research on portfolio investments. Follow him on Twitter @Jamessmith1609