Thursday 26 January 2012

Do I Really Need Student Loan?



No matter what country you look at, all over the world, college students are crippled by student loan debts so high, it will take the first half of the students working career to pay them off. How is that fair? Who wants to invest time and money into an education, with the intention of gaining a better paying career, only to be saddled with debt? It is estimated that 18 million students attend over 5000 different institutions in the USA today, and have racked up nearly $900 billion in debt! I could not even began to fathom what that number even looks like! Combine that with the volatile employment environment, is it even worth going to school? Of course it is! But students need to start taking better control of their finances and lives! Before you sell your soul to the student loan devil, let's take a gander at the big picture! 

1) Do you have a budget? You've heard this a thousand times, but without a realistic, constructive and workable budget, you are going to be drowning your sorrows in bad tequila in your post-graduate years. You can forget all those big dreams you had for after graduation, if you're in the red, they won't happen. You need to work out a yearly, monthly and weekly budget for the next four years. Unless you're made of money, you don't have the privilege of being extravagant.

2) Can you work? The answer is probably yes! Young students don't have the distractions of child rearing, supporting spouses or mortgage payments, thus, they have more time on their hands to balance their studies, hobbies and a part-time job. Putting in a few hours a week, will give you a break from your studies, allow you to build up a resume, and alleviate the amount of debt you'll face at the end of your studies. 
3) Are you prepared to attend an institution with lower costs? Just because you live 15 minutes away from Harvard doesn't mean that one, you'll be admitted or two, that you'll be able to afford it! It's important to be realistic about the cost of education. Prospective students get caught up in dreams of being at an ivy league institution, rather then researching the more than 3000 institutions across America, that offer equatable program options. It might actually make more sense to move away to go to an affordable institution, rather than going to an expensive one that is closer to home! 

These are all things that you need to consider and research before you approach the government or an institution for money. It is important to take responsibility for both your educational and financial future, don't place it in someone else's hands!  

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