Going to college is a life-changer for people looking for a financially stable and well-maintained lifestyle. But to get through college without falling into debt, it is mandatory to have a sound financial plan to help you tackle everything from tuition fees to residence, textbooks, and other activities in college.
Before joining college, you must navigate the financial landscape you will be expected to experience while pursuing knowledge. We have curated a well-thought-out and comprehensive financial guide that ensures you go through college without any instability in your money-related matters.
So, without further ado, let’s begin!
Research, Research, and Research (About Expenses)
Researching about something before being in that situation can save you from surprises and provide a better understanding of your finances in college. You can look for the estimated (expected) costs for tuition per semester i.e. how much does each semester cost? What is the estimated price of your books, stationery, and other condiments for the semester? Are there security/clearance charges? Does the cost increase with time?
Similarly, you can also create an estimate of the residential charges while you attend college. Do you plan to live on campus or will you be looking for a place outside? Are you sharing the space? How much will your grocery cost?
It might look like a lot of work, but getting ahead of your expenses will help you carefully sort out your financial requirements and arrange the extra funds before heading to college. It also gives you an idea about whether your current resources are enough or do you need to upgrade your income or maintain an emergency fund before heading to college.
Create a Realistic But Effective Budget
Staying within a specific budget might require you to sacrifice some of your unnecessary expenditures, but if you look at it in the longer run, it can straighten out your finances and help you go through college without facing any strain on your expenses.
With the help of a fiduciary financial planner, develop a realistic budget that includes both your fixed expenses, such as tuition fees, utilities, rent, groceries, and other education-related expenses that will recur after every interval. Variable expenses can occur from month to month, based on your lifestyle choices, personal habits, and other circumstances. Some examples of variable expenses are food and dining out, transportation, shopping, entertainment, clothing, healthcare, and technology.
College students need to create an estimate of their variable expenses to create a budget. While keeping a gap for fun and leisure during college, learn the art of saving and track all your expenses to avoid going overboard with expenditures.
Explore Different Financial Aid Options
Financial aid is funding provided to students and their families to cover the cost of higher education. The Free Application for Federal Student Aid or FAFSA is the government body that determines which students are eligible for a financial aid program along with the amount that will be granted to each student.
Besides this, bodies like the Federal Supplemental Educational Opportunity Grant or the FSEOG only provide a substantial grant to students with exceptional financial difficulty who want to get ahead. They offer rewards ranging between $100 – $4000 that you don’t need to repay.
Before applying for college, you can discuss this with your educational counselor to see if any colleges can offer you a scholarship based on your financial situation. Even if there aren’t any financial difficulties, getting a scholarship will help you save the funds that you were going to spend on your education. Save that money to build your assets.
Manage Your Studies With a Job
Work-study opportunities are available for college students who want to maintain an income flow while getting higher education. While you have the option to choose any part-time opportunity, there are government and college-administered work-study options, designed to match the requirements of undergrads.
Request your potential college to provide you with a list of the work-study opportunities available to match your expectations. Most colleges update the listings on their websites, but if you are still looking for them, contact their financial aid office.
Apply for positions that will add up as relevant experience in your resume when you apply for jobs. For instance, if you plan to apply for managerial and administrative roles, choose part-time work that involves clerical tasks like data entry, phone handling, office organization, and documentation. Similarly, if you are into digital marketing and IT, choose assistive roles like working with the college department on projects that add to your portfolio.
Work on Your Repayment Plan
One of the things that most professionals dread for a long time is repayment of their college loans. An average student takes around 20 years to repay their college loans, which can take a massive toll on your monthly expenditure long after college. During college, make a list of all your student loans, the amount you have to pay each month along with the due interest rate. Make sure that you are familiar with different repayment terms and whether there is an alternative way to pay the loans quicker. Federal loans offer different repayment options like standard, extended, IDR, and graduated, offering students the option to choose a plan that aligns with their financial status better. Always show some flexibility when choosing a student loan repayment plan can secure your needs and also help you make changes to payment terms if needed.
Final Thoughts
Going to college is one of the biggest events of one’s life. Your plans for higher education will make you a better and financially rewarding career. However, to get through college without any financial instabilities, you need to have a well-thought-out, detailed, realistic, and flexible financial plan.
Start your research and choose the most promising student loan out there. Look for an income source while you go through college and also create an emergency fund to ensure that even if you are in a financial crunch, there is enough to repay your loan on time. We hope this guide will help you create a plan that puts you through college without stress of financial uncertainty.
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