Would you like to still be paying off your college debt ten years after graduating?
Debt could be a long-term burden of financial stress. “On average, students will pay back their loans based on a 10-year repayment schedule,” says withfrank.org. This would take a large toll on the lifestyle you would have wished to live. The additional money you would have had is now unavailable. Any extra money you have you should use to start paying your loans down so that you do not accumulate so much compound interest. Your desire to vacation has vanished. Being able to spend money on better quality items is gone. Not only will you not have the fun experiences, but you also have other bills to pay. Does this mean you have to pick up more than one job? You can decide whether you want to be in debt with no extra money, in debt owing very little money or not in debt at all.
Planning early is a way to avoid debt. Getting scholarships is also another way. To plan early, open a savings account at a nearby trusted bank where you can deposit a designated amount of money each month. Starting your freshman year of high school, research scholarships that you can apply for. “Apply for more than one scholarship,” says Kailyn Bates, a scholarship expert who has her own non-profit organization, Scholars Path. The scholarships could be through your future school or community sources. Scholarship money can cover your dorm, books, and tuition. “Each year, an estimated $46 billion in grants and scholarship money is awarded by the U.S. Department of Education and the nation’s colleges and universities,” says www. debt.org.
You have many ways to avoid lingering debt. It is up to you to be responsible and take advantage of the many available resources.