We all know that going to school can be a worthwhile venture. Workers who have college degrees earn more, sometimes almost double, than those workers who earn just a high school degree. But college isn’t a cheap prospect, and students have to face financial realities. How will I pay for this? How long will it take to pay for it? Will I be able to get any assistance? If you are ready to get your business degree, make sure you consider all the options below related to paying for your education and starting your career in the best financial standing.
These are factors you should consider before you enroll in your business degree program:
- Have you visited the financial aid office? Most colleges and universities, even those online, have a dedicated financial aid office that helps students with applying for and receiving scholarships, grants or loans. A visit to this office is a must: Your business degree program could have special scholarships you don’t know about, and there could be money waiting for you to fund your education. Additionally, a financial aid counselor will go over all of your college financial aid options with you.
- Scholarships vs. loans: By all means, if you can get a scholarship, take it. Scholarships are gifts, wonderful gifts, that you don’t have to pay back. They pay for your classes or books, possibly even your housing, and they also could be good for your resume down the road. Loans are just that, loans, and they must be repaid. We’ll repeat this, because sometimes it gets forgotten: They must be repaid. Loans don’t disappear if you file bankruptcy. Loans exist when you try to buy a home or a car later on in life. If you take a loan, make sure you’re responsible and borrow only what you need. Too many students over-borrow and then graduate tens of thousands of dollars in debt. That loan is your responsibility. Make sure you fulfill it.
- Private vs. government loans: If you take out student loans, make sure you know your obligations. Read over the rules of the loan, how it accrues interest, and when you’ll be responsible to repay it. Federal (or government) loans offer low interest rates and other benefits. Private student loans (offered by banks like the one you use for your checking account) can be very generous, but also typically come with higher interest rates and faster repayment periods. To apply for federal college funding, visit the Free Application for Federal Student Aid (FAFSA) website.
- Think about the future: So you worked three jobs, took out a few loans and even won a scholarship because you were such a good student. Congratulations! But wait. You’ll have to pay some of that money back soon. Getting funding for school is a common challenge for students across the nation. As you get closer to graduating, make sure you’re preparing yourself for the future. Take an exit interview if you borrowed money. Find out about how your living costs will change when you’re out on your own. Learn the repayment plan for your loans. Most students have to start repaying their loans six months after they graduate. Make sure you’re prepared. Protect your credit, and your life-long financial health, by planning ahead.
