Published: Saturday, Nov. 9 2013 9:35 p.m. MST
Given that an ounce of prevention is worth a pound of cure the following is good
advice.While a student, make due with not very much money.While a student, work summers definately and (if you can handle it) work a
part time job during the school year, 10 to 20 hours per week.If you
are able, live at home.Go the first two years to a (less expensive)
community college.It is extremely important to do what you want,
what interests you in life therefore don't consider it a waste of time or
money if you change majors one or more times. To not do this because of an
artificial deadline to graduate in 4 years or because you want to save money is
penny wise and pound foolish.
It also helps to select a major in which one is likely to get a job. These days
that doesn't include psychology, sociology, communications and the like.
Nothing wrong with these fairly easy majors except the jobs are generally
low-paying and relatively non-existent which makes loan repayment very
difficult. Some colleges have put a surcharge on students selecting
these majors. I can't remember which schools, but it was in a DNews article
a while back.
Experts at what? Keeping people and students trapped in debt? No once does any
financial experts show people how to get out of debt and avoid it at all costs.
These students loans are trick loans that will never go away and designed to
keep student in eternal debt. Since they are more of the fraudulent lending
scams and debts to trap people students and parents should not be held liable to
pay them off, loan sharks continue their rampage and government is feeding the
frenzy by subsidizing more fraudulent loans just like they did in the housing
crash.The problems with defaulting on student loans is there is no
collateral to recover any losses that governemnt has inflicted on the young
americans.First rule of consumers, do not borrow money needlessly
for candy bars, soda pops, that nickle and dime your assets out of your
accounts. Tear up credit cards, they are for the weak willed and welfare
public.Good luck government and "experts" in getting your
Good to see yet sad to see 30% of the U's studentbody is relying on loans.
The best thing that happened to me was to graduate debt free. @My2Cents - use your good credit to your advantage. Use credit cards to earn
free trips and hotel stays, or even just cash back. But make sure you only
spend what you can afford and pay off those cards every month. Card companies
and banks offer these deals since they know the majority will carry a balance
and pay interest. Avoid that and take advantage of the deals, using your good
credit to your advantage.
IMO college is a business designed to make money, education or training in a
skill is a side effect or of secondary importance. If young people would work
at any job right out of high school for a year or two and learn how to manage
and budget money, experience life they will make different and better choices
over all than by rushing on a mission (LDS grads) or immersing themselves in the
college cocoon that insulates them from life and costs a bundle.Look
at it this way: graduate and work 1 to 2 years, or go on a mission, then work 1
or 2 years before deciding on the form and goals of education. If you are short
of money, the military will trade you time for educational benefits and you can
take some courses on base or even at sea (Navy and Marine Corps).Blindly rushing into college like a lemming at 18 or post mission is
foolishness and costly.Pay as you go, avoid debt like the plague.
So you are a few years older when done. You are also probably less in debt if
any, and better prepared for life.
The smart way to pay back student loans faster is to obviously save more and
spend less.. I would start by looking at automobile costs as they are the
biggest expense for most ppl in this country. You don't need an expensive
policy from a company like GEICO.. they charge WAY too much (your premiums will
go to pay for their TV ads). Get a basic policy and aim for around $25/month
(check out 4AutoInsuranceQuote) and then put away the money u save... or better
yet - use it to pay back your student loan debt.
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