TUESDAY, NOVEMBER 11, 2008 4:15 PM
Improving Your Financial Situation: A Student Loan Survival Guide
Interest rates for student loans are on the rise, and the number of lenders willing to provide loans is falling for the first time in decades. At the same time, the cost of college is increasing at about four times the rate of inflation. As a result, finding financial help to pay for college is getting harder; keeping your loans is more difficult, and paying them back after school is increasingly difficult. In this environment, knowing how to survive student loans is important.
The most important thing you can do is to be credit-worthy. Show loan companies that investing in your future is a safe bet. This means doing your best to avoid credit card debt, pay your debts on time, and build a solid credit record through judicious use of credit cards. When it comes time to pay your loans, pay your loans on time to avoid penalty fees, and consolidate when possible to obtain lower rates. Some companies offer reduced interest rates for on-time payment or direct debit payments.
Another way to find money for college is to take advantage of your college's scholarship and work study programs. Many schools have offices to help you find and apply for scholarships, and nearly every university offers a work study option where you perform a job for the school in return for money applied toward your tuition bill. Lastly, you can and should look for part time work to help you earn money for expenses so you don't have to rely exclusively on loans while you're working your way through school.
