Student-loan debt is reaching incredible heights. Last year, total student-loan debt passed total credit card debt for the first time. And this points to a somewhat disturbing milestone.
Before you take on your college loan, here are a number of practical tips for minimizing debt and reducing the cost of education financing,
- Borrow federal first. Federal loans are cheaper, more available and have better repayment terms than private student loans. The unsubsidized Stafford and PLUS loans are available without regard to financial need, so you don't have to be poor to qualify.
- Live like a student while you are in school so you don't have to live like a student after you graduate.
- Do not borrow more for your entire education than your expected starting salary after you graduate. Otherwise you will find it difficult to repay the debt and will be at higher risk of default.
- If you are borrowing more than $10,000 per year for college, switch to a less expensive school.
- Submit the Free Application for Federal Student Aid (FAFSA) at www.fafsa.ed.gov to apply for federal and state grants and search the Fastweb scholarships database to find scholarships for which you are eligible. Every dollar you get in grants and scholarships is a dollar less you will need to borrow.
via finaid.org
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