Financing your college education can be an overwhelming topic to grasp. With so many options and the varying interest rates, it’s no wonder students and parents alike get confused about the best way to finance their college education.
College is a wonderful way to invest in your future and and important part to becoming a well-rounded individual, but choosing a funding option that won’t set you up for financial hardship upon graduating is crucial. Paying off student loans can be burdensome to new grads so before you take on thousands in student loan debt, make certain you understand what funding option is best for you and your family. It’s important to realize that every student’s financial situation and needs are different, so there isn’t common solution.
This student loan infographic offers helpful facts and tips that you can use in crafting your college funding strategy. It demonstrates statistics like total interest paid over the life of a loan and how long it might take to pay your student loans off. It also contains historical data, like what student loans were like 60 years ago, and projections about how much student loans might be by the time the next generation enrolls in college.
Other helpful hints for financing your college education and managing your student loan debt include:
- Get a part-time job to pay for smaller educational expenses like books, food and housing fees
- Apply for grants, scholarships and work-study programs
- Choose federal loans over private loans when possible, as federal loans typically have lower interest rates
- Take full credit loads each semester to minimize the total number of semesters required to graduate
- Once you graduate, consolidate loans and pay additional monthly principal payments to decrease the total repayment time and interest paid
With nearly one in 12 federal loan recipients end up defaulting, it is imperative that you learn more about student loans. Educate yourself on the details of student loan debt so that you can prepare a repayment plan that will have the least impact on your financial future.