College costs in 2012 – Are you equipped with the smartest tips to manage debt?
Most probably, the equity in your home and your 529 college savings plan might be still down but the college tuition fees in the US are spiraling out of control. During 2011, the government and the statistics showed enough proof to the college goers to skip college, high unemployment rate, a harsh job market and the unnatural tuition hikes. An eminent person of the education industry in the US believes that the jobs and the industries that are growing are those that require higher education from the students. As per 2010 reports, it has been decided that 69% of the jobs that will be provided by 2018 will require higher education in order to qualify.
Eliminating yourself from college aid is one of the biggest mistakes
Yes, according to most recent reports, it has been revealed that the biggest mistake that students commit is they believe that they’ll not qualify for college aid with their present financial state. A study made in 2010 showed that around 2.5 million students would have been eligible for the Pell grant but they missed the free college cash as they didn’t apply and therefore they lost the golden opportunity of getting cash. While the students who attend the costly institutions apply for such college aid, the cheaper schools and colleges are not so informative about the college aids.
Filing for the FAFSA can make things favorable for a needy student
The FAFSA or the Free Application for Federal Student Aid qualifies the students for the federal loans, grants and the other state-sponsored awards. If you remain aware of the date and file it close to the 1st of January, you may still qualify for the aid. If you’re still under the false impression that you should file your FAFSA application after you finish filing your tax returns, you’re mistaken. Actually by that time the money is already awarded and you may miss out the option. Federal grants are distributed at a first-come, first served basis and therefore you have to rush in order to get one for yourself.
Student loan debt – Ways in which you can repay them and live debt free
According to recent reports, student borrowing has exceeded the $100 billion threshold in 2010 and it may cross the $1 trillion in 2012. As student loan debt exceeded credit card debt, there are some students who are thinking about filing bankruptcy to charge off their student loan debts. Have a look at the debt consolidation benefits of consolidating your student loans.
- You can combine the payments: You can combine the multiple payments into a single monthly payment as you have taken out a debt consolidation loan with a lower interest rate. Instead of having to make multiple payments to multiple lenders, you can make a single monthly payment to the debt consolidation loan.
- The interest rates will be lower: The interest rate on the debt consolidation loan will be much lower than what you were paying on the educational loans and therefore the monthly payments will be revised and more affordable. You can even save a considerable amount of money in the long run and use it to repay all your other debt obligations.
- The repayment term will be extended: The repayment term will be extended and as you’re a student borrower, you must be living on a fixed income due to which you may need to save a portion of your dollars every month for other financial purposes. Therefore, with a debt consolidation loan, you can easily extend the repayment term of the loan and reduce the monthly payments that you have to pay.
- Alternative to bankruptcy: Students can certainly opt for this debt repayment tool as an alternative to bankruptcy as this way they can protect their credit score from getting hurt.
Therefore, when you’re looking for ways in which you can stay on top of your college finances by not incurring debt, make sure you get help from professional options so that you can easily stay off the cliff of debt. Learn more about scholarships and financial aid in our college financial aid channel.
Author Bio: Paulette Noonan is a regular writer with Debt Consolidation Care and is also a contributory writer with other financial sites. Expertise is woven around various aspects of the debt industry and with her e-books she tries to impart to people the different situations and simple solutions to get out of difficult situations.