Tips to Tackle your Debt while you Study
Obtaining a university degree can be one of the most thrilling times in a person’s life. While most people have a dream of obtaining that goal with as little amount of debt as possible, not everyone is able to keep the debt numbers that low. The first step to avoid this high debt is simple. Only take what you need and no more. Perhaps even using your savings to stretch out payments for as long as possible will help you reduce your need for the loan amount. Here are some other strategies that will help you as well.
Have a budget prepared early
Tuition and other school fees can be easily predictable as most schools lay them out a year or two in advance. As for the rest of the extra money that you will need for food, books, etc. that can vary greatly. You will want to make sure you are saving up enough money to have all of these covered and it will help you go a long way in avoiding debt further in the future. If you spend outside of your means in a given year, you will be more inclined to borrow more money and with interest, that can add up greatly over time.
Choose the right school
Unless you are on full scholarship, it may be more fruitful for you to pick a school that has a cost that’s only half of another one that you may have been considering while sacrificing a small portion of quality. By no means should you abandon your dream college, but if there is an alternative that is almost as good and much cheaper, then perhaps that should be the road you take.
Pick the right major
Unfortunately, there is no guarantee for a profession in your field that is awaiting for you as soon as you graduate. Some majors, however, are much more likely to be able to get you a job quickly compared to others. Business and engineering majors are much more likely to receive employment quickly after graduation than liberal arts majors. There is a high demand from large and high paying companies for these types of students and even receiving an internship is easier through these majors.
Stay in contact with your loaner
Keeping the company that gave you the loan up to date on all of the happenings in your life can affect your loan. These can be companies like HDFC that offer loans for Indian students and can help you with your debt once you are finished. If you are having trouble finding work or have found a job that doesn’t pay enough to keep up on your loans, let them know. They will be able to work with you and provide you with a lower payment amount based on a percentage of what you make from your new employer in a given month. These options often go unnoticed by many students, but it is a very valuable tool.
Now that you have seen some of the ways to avoid this type of debt, take it to heart and borrow wisely. This is a substantial amount of money that you will likely need to get through college so make sure to control it as much as possible.
Angie Picardo is a writer for Nerdwallet, a financial literacy website dedicated to empowering people to meet their financial goals.