Scholarships and Grants
Seeking out grants and/or scholarships can be the most beneficial action to reducing student debt because they simply don’t need to be repaid. So, taking the time to apply for any opportunities for which you are eligible and feel you have a reasonable shot at getting can meaningfully reduce your long-term debt. Get creative and look for local and regional offerings, as well as programs offered by professional organizations that are encouraging people to enter your chosen field of study.
Budgeting During School
Creating and sticking to a budget is a valuable habit to develop while in school. Managing your expenses can help you avoid adding unnecessary debt and set you up for long-term financial success.
Look for ways to minimize costs, such as commuting from home or getting roommates. If possible, get a part-time job or job at school to change the dynamics of your cash flow while getting your education. This can chip away at the long-term debt and reduce your overall borrowing.
Borrowing Smartly
When loans are necessary, make sure to choose the most affordable options available, and to keep your options as flexible as possible, aim for Federal student loans. They typically offer better rates and come with more flexibility compared to private lending.
Student Loan Debt Influence on Career Paths
Understanding the amount of student loan debt you can accumulate should very well play into your career considerations, as well as the amount of compensation that role can potentially generate when you launch your career. Often, there is a trade-off if you want to go into a public sector career or work in a non-profit. These roles sometimes allow you to tap into loan forgiveness programs but may come with a lower salary. Private sector jobs often pay more, but very rarely, if ever, provide debt relief. Plan your career path accordingly.
Conclusion
A high debt-to-income ratio can create financial stress after graduation, and unfortunately, it is a trap that many fall into. Planning carefully and being proactive about all decisions regarding your finances throughout your entire education is the best way to ensure you are happy with your career and the financial outcome of your chosen path. Taking advantage of every relevant program can positively reduce stress and help maximize your happiness in your new career!