Personal Finance Advice

Taking out student loans shouldn’t be your first choice when trying to fund your education.  In fact, student loans should only be used when there are simply no other means by which to pay for your tuition, books, and all the other expenses that come with making your way through school.

Why? The primary reason is because even though student loan interest may be tax deductible, it’s still interest nonetheless.  Would you rather graduate from college debt free and ready to go find a great job in your field or instead graduate saddled with a ton of student loan debt and desperate to find any job so you can start making a dent in your huge balances?

The solution: Work your way through college.

Sure, it’s easier said than done, but unless your parents did a great job of fastidiously saving for your college education then chances are you’re on your own when it comes to footing the bill.  You may argue that your studies are difficult enough and you don’t need the added stress of a job, but the truth is that the stress of a job now will pale in comparison to the stress associated to graduating from college with a huge pile of debt.

What’s worse than financing your college education with student loans? Don’t even think about paying for tuition, books, and housing by pulling out credit cards.  If you must use credit to pay for your college education then you should use student loans because the interest is lower and the terms are much more attractive.

Here are some other options for paying for your college education:

1.  Scholarships and grants

2.  Financial aid

3.  Take only as many classes as you can afford to pay for yourself

4.  Employer tuition assistance

Don’t let the threat of massive debt stop you from pursuing your degree.  If you have no other choice but to obtain student loans in order to pay for your education then do so, but only borrow as much as you absolutely need.  A student loan should pay for the necessities, and not for a cute new wardrobe or a brand new motorcycle.

There are people who make it through college without financial assistance from parents and without taking out a single student loan.  These people are oftentimes exhausted while enrolled in school because they work one or two jobs on the side, but they realize the true benefit when they graduate and don’t have to deal with repaying their college debt.