Increasing College Expenses – How to deal with it?

College expenses, especially for state-based public colleges and universities, have been increasing every year due to budget constraints from the government. For example, tuition costs for the University of California between the years of 1999 and 2000 was $3870 for in-state residents, but looking at the data from 2011 and 2012, the annual tuition cost shows as $13970, which is almost four times as high as those 10 years ago.

Most students cannot pay for their entire educational expenses on their own due to various reasons. Most neither have the time nor the skills to find a well-paying job while in school. The financial burden can also continue to grow if they are unable to get a job upon graduation.

Considering the reality of cash-strapped students before and after school, one thing is obvious: students need to be more responsible and make appropriate financial decisions every step of the way during school. In this article,  I will talk about a number of steps students need to consider in order to be in a better financial position by the time graduation arrives.

Take Full Advantage of Federal Loans

Many students need to take out student loans to pay for their educational expenses. When doing so, students need to take full advantage of federal student loans before considering any other options. Federal loans are subsidized by the Department of Education, thus they offer great benefits including low fixed interest rates, a grace period upon graduation, and student forgiveness programs. As a bonus, if a student is thinking of how to consolidate student loans upon graduation, the government even offers a federal loan consolidation service which also promises lower rate of interests.

Scholarships from the government or local businesses

It is well known that the government provides many scholarship opportunities to students, which is a list too long for this article to cover; however, I want to mention scholarships provided by local businesses. When a student chooses a major, they will often receive emails from the department of the major announcing scholarship opportunities supported by local businesses. The competition for these scholarships is much lower than those from the government. Also, most companies that offer such scholarships are in the same industry as the chosen major. Not only are the chances of receiving one of these scholarships higher, but the possibilities for networking within the particular industry are as well.

Make an Effort to Pay for Your Living Expenses

It can be tough to work and study at the same time; however, if you are not earning any income and borrowing to cover all of the expenses, the amount of debt accumulated by the time you are done with school will be considerable. Most schools offer part-time jobs and pay decent amounts per hour. Having a part time or full time job on campus means there is no need to drive outside the campus and you can efficiently squeeze your work schedule between classes.

Additionally, most of us now have access to the Internet. There are various ways that you can make money online (Not including scam sites that promise to pay $100 per hour doing nothing). There are quite a number of legitimate sites where you can use basic skills to get paid. For instance, Fiverr is a good place to consider. By participating, you receive $5 in exchange for certain skills listed on the site. The work can be as simple as making a funny video, logo creation, or making a simple spreadsheet. Even internet connection is getting more expensive so it is good idea to look for student wifi deals and save some money.

The bottom line is that money saved is money earned. If you need to take out student loans, take advantage of government programs before seeking for private lenders; you could save a lot simply from lower interest. Also, find a part time job to at least pay for living expenses such as everyday needs, groceries and other costs. Although it will not completely spare you from the debt, it will help by lowering the amount of borrowing needed to cover expenses.