Student Loans: How Much to Borrow

Most parents expect that their children will need to borrow money to go to college. They are right. College costs are a lot higher than most parents can afford. This leaves parents and students in the position of figuring out how much to borrow when the time comes. The truth is, it can really pay off for you and your child to do the research before you borrow.

Most people just have not had the need to get a student loan before. Or if they did, a lot of things have changed since then and they may have a lot of questions. The first step is to work with the school of your choice or your high school counselor to figure out what scholarships and grants are available. Apply and try your hardest to get your hands on some of this money.

Figure out what you can afford on your own. The biggest mistake you can make when getting student loans or private student loans is to borrow too much money. Some people assume that they can just worry about it later and get a little extra cash to put aside for emergencies. But, most people that do this do not use the money for an emergency, or they end up paying a lot of interest on money that is sitting stagnant in an account.

After you determine what you or your child can afford to put towards college every month, figure out what the actual cost of college will be. It will be a lot more than tuition alone. You need to consider housing, food, bills, gas, car repairs, books and other fees that may pop up. Then do not borrow any more than that amount.
Some parents are tempted to tell their students that they will just have to work to make up the difference. Most students do work through college, but it is unlikely that they will have time to work very much if they are going to pass the classes that they are working to pay for. College students do not have the training or experience to get high paying jobs either. They are better off working with the school to get jobs or internships that get them some experience in their field. Time spent this way is far more beneficial to them in the long run, but do not expect them to make hardly any money doing it.

Once you determine the amount of money that you need to borrow, go to a web site that compares many different lenders and programs. Also work with your school, but do not let them be your only resource. Doing some legwork on your own could make a big difference when shopping for your student loans.

About the Author: Evelyn Saunders, a retired teacher, is the editor for student-loans.net, a provider of student loans and information on how to get private student loans as well as consolidation. For more information, please visit http://www.student-loans.net.

Is Your Life Becoming Expensive?

Life in college is trending towards becoming more and more expensive. Meanwhile, college students are still making around the same amount of money year to year. Unexpected expenses and emergencies can drag down your finances making it seem impossible to stay afloat. Sometimes we don’t realize that we have actually up-graded our lifestyles so much that we’ve slowly been getting closer and closer to living beyond our means. So, if your eyes have become bigger than your wallet, you need to learn how to cut out some of the extra expenses that you’ve accumulated through the years.

You can start with your monthly bills. What would happen if you lived without cable for a while? Are you paying for channels that you barely watch? Sometimes renting a movie is cheaper than paying for a whole month of a premium channel that doesn’t play what you want to see, anyway. If you mostly watch network TV, think about purchasing a power antenna to get all of your favorite shows. That’s a one time cost instead of a monthly bill. Also, paying your bills online for free can save you almost two-hundred dollars per year on stamps, not to mention late fees on bills and mailed checks that eventually bounce because you forgot that they were out there.

If you must have a cell phone, consider it a necessity instead of a luxury. Only use it when you absolutely need to and don’t chatter away to your friends all month. Pick a plan with minimal minutes and keep track. Ask yourself if it’s really an emergency before you use it. You can also save money on your cell phone bill by using free texting instead of actually making a call if your cell phone company provides that feature.

Think about the long-term cost of your daily spending habits. Calculate it and write it down. Would you pay over one-hundred dollars for a can of coffee at the grocery store? Probably not. So ask yourself why you would willingly pay close to five dollars a day for a latte on your way to class. It may seem like a small amount, but if you saved that money, you would have around five-thousand dollars for yourself at the end of the year. Spoiling yourself on little things is fine every now and then, but make it infrequent and keep your goal of saving in mind. If you brought a sandwich and fruit for lunch instead of grabbing some fast food, you’d have another five-thousand dollars in the bank.

Set yourself a weekly grocery budget and carry a calculator when you go to the store. Use coupons, but don’t buy something just because you have a coupon. Make a menu and only buy the items that you really need to make the dishes that you have planned. Try to spend one week per month living off of just what you have stored up in your pantry. Your pantry will get cleaned out and you’ll realize which items you shouldn’t have bought in the first place. Go for generic brands whenever possible. Their quality has greatly improved over the years, so if you were not impressed the first time, give it another try. Save money and live happily, not beyond your means. If you get into a bind, consider student loans or private student loans instead of running up a credit card.

About the Author: Evelyn Saunders, a retired teacher, is the editor for student-loans.net, a provider of student loans and information on how to get private student loans as well as consolidation. For more information, please visit http://www.student-loans.net.