The Steps:
  

Family

  

Government & Community

  

Education & Skills

  

Employment

  

Management

  

Credit

  
 
 
 
 
 
 


Education & Skills
Section I / Section II / Section III / Section IV / Section V

Control Your Plan

  • Throughout college always maintain the highest grades possible, thus providing yourself the ongoing opportunity to be eligible for scholarships and merit awards as they become available.

  • Learn to save as much money as you can while in school to help pay your expenses along the way – rewards are for a many years because of reduced debt and interest to pay later.

  • Students drop out of school from debt and spending problems.

  • Be careful how you use your credit cards. Understand consumer credit is neither income nor an investment. You will have to repay your debt, and in so doing will diminish your future discretionary income. The College Entrance Examination Board warns you "Say 'no' to credit cards" because of their monthly interest and annual fees. "If you owe $300 on your card throughout the year, and your interest rate is 23% and an annual fee $20, you will pay $89 a year in interest. You will pay even more if you get cash advances."

  • If you do get into financial trouble, don't let it destroy you or distract from studies. Work it out. Get advice from a trusted and knowledgeable advisor, financial counselor, or credit counselor.

  • Maintain a good credit history. Request a copy of your credit report from one of the three national credit-reporting agencies. (See Credit chapter later)

  • Maintain a regular schedule of sleep, work, classes, study, social, and recreational activities.


Possible Cost Reductions and Strategies for Success

  • Hire a tutor rather than having to take the class over again.

  • Learn skills that will save you money. Read about money management and personal finance issues.

  • Compare the costs of having an apartment versus staying in a residence hall. Consider the responsibilities of apartment living and evaluate your reasons for attending the university.

  • Compare the cost to attend college minus the grant or scholarship assistance being offered to see what your real out-of-pocket expense would be. Don't assume you cannot attend a higher cost college until you review the financial aid you will receive.

  • Attend a local community college during your freshman and sophomore years. Then transfer to a four-year institution to complete your undergraduate education.

  • Live "in-State" for one year to declare residency before going to college to avoid the higher out-of-state tuition. However, you may not be able to establish residency if your primary purpose for moving to the State is to go to college. Check out state and college residency requirements.

  • Live at home and commute to classes, but actively participate in campus organizations and events.

  • Contact school, student organizations, and local housing officials about low cost possibilities for rental space.

  • Share living expenses or live in a cooperative living facility if such exist at your college.

  • Have parents consider owning an apartment building which you will manage and/or reside in for several years.

  • To obtain a tuition discount for you, your parent can consider being employed by the university.

  • Buy used textbooks or obtain study materials on file from library.

  • Rather than doing without textbooks, consider buying and sharing your textbooks with another student.

  • Compare interest rates and total costs of loans over time with different interest rates.

  • If you have difficulty in repaying your college loan, first try to increase income and reduce expenses, then check on your lender's "forbearance policy." Some lenders lower your payments for a period of time. Always talk to your lender if you experience problems in loan repayment.

  • Borrow just the minimum, increase income now, and reduce expenses. The difference in total payback of a $15,000 and a $20,000 loan can be seen in the Table below:

  • The Cost of an Educational Loan for $15,000 compared to $20,000 for 5 years or 10 years

The Cost of an Educational Loan for $15,000
compared to $20,000 for 5 years or 10 years
Interest Rate
Amount Owed
Monthly Payment
No. Of Months
Total % Interest
Total Dollar Paid
7.5%
$20,000
$401
60
$4046
$24,046
7.5%
$15,000
$301
60
$3034
$18,034
7.5%
$20,000
$237
120
$8488
$28,488
7.5%
$15,000
$178
120
$6366
$21,366

The difference between borrowing $15,000 and $20,000 for 5 years (60 months) is $6,012 and for 10 years is $7,122

 

 

Family - Government & Community - Education & Skills - Employment - Management - Credit - Housing, Vehicles & Equipment - Insurance - Savings - Investment - Financial Planning
Ability to Adjust

About This Book - About The Author - Purchasing Information - Associated Links
Contributors

About This Book
Dr. Flora Williams
Associated Links
Contributors
Topic Index

Topics:

 

 

 

 

"Throughout college always maintain the highest grades possible"



"Understand consumer credit is neither income nor an investment. You will have to repay your debt, and in so doing will diminish your future discretionary income"



"Maintain a good credit history. Request a copy of your credit report from one of the three national credit-reporting agencies"
"Live "in-State" for one year to declare residency before going to college to avoid the higher out-of-state tuition"



"Share living expenses or live in a cooperative living facility if such exist at your college"



"Rather than doing without textbooks, consider buying and sharing your textbooks with another student"

"If you have difficulty in repaying your college loan, first try to increase income and reduce expenses, then check on your lender's 'forbearance policy'"



"Borrow just the minimum, increase income now, and reduce expenses"