Your parents may fondly look back on their college days, when a summer job was enough to pay for board, books and tuition. That is an alarming contrast to the headlines we’ve seen over the past 10 to 15 years about the increasing number of students burdened by large student debts. (Did you know that 2.5 million owe $100,000 or more in student loans?)
If you've taken these six-figure lessons to heart, it's good to know there are plenty of strategies to earn that degree without mountains of debt. Piece together these solutions, and you can make a huge impact on how much you owe when you’re ready to enter the workforce. Think of it as a gift to your future self!
Live at home: According to the most recent College Savings Foundation survey, for 28 percent of parents, letting their college age student live at home is their top strategy to save money on tuition. If this option is open to you, choosing a school within commuting distance can shave thousands in room and board expenses.
Work it: Working a job while you’re in school puts you in great company. Nearly half of students (46 percent) are working part time to help pay for college expenses. Whether it’s an on-campus job, a side hustle in the gig economy, or a part-time job related to your field of study, working is always a smart solution to offsetting college expenses.
Make interest-only payments: Not everyone can avoid student loans. And if you can't, making interest-only payments while you’re still in school can save you money and lower your future payment. Find out what that monthly option would cost you, and you may be pleasantly surprised by how affordable that is!
Create smart spending habits: Figuring out how to make the finances work on a shoestring budget can be a tremendous challenge. But know this — you are far from alone! Don’t stick your head in the sand. Stay focused on making on-time monthly bill payments, and keeping a monthly budget for bills and spending.
Scout around for scholarships: Every year, it’s worthwhile to block out some time to search and apply for scholarships. If you can manage to score one, two or even more, that’s money you won’t have to repay (with compounding interest)! In addition to the usual online sources, ask your adviser or department head.
Budget for the good times: We’ll always preach about keeping a budget and sticking with it. That doesn’t mean you have to leave fun out of the equation. Whether you want to enjoy the occasional night on the town with friends or have a grand adventure for spring break, set aside a percentage of your budget for enjoyment. While you're at it, challenge yourself to find deals and coupons to lower your costs. You don't need to .
As you make your way through school, Minnwest Bank has convenient mobile banking toolsand hassle-free checking to help you manage your spending and pay the bills. Plus, our personal bankers are always just a phone call away.