College Loan Borrowing Tips

To Borrow or Not to Borrow?

Deciding whether or not to borrow money for an advanced education is a personal decision that can be difficult to make. Primarily you should consider many factors that would affect whether to borrow or how much to borrow such as:

• Your educational interests and what degree you will be pursuing
• The school you plan to attend and whether there are more affordable options available
• The various living expenses you will incur in college
• The possibility of working to finance some or all of your college education
• The availability of other funding such as scholarships and grants

Regardless of which avenue you choose for any of these questions, you should seek to borrow as little as possible, and try to find other ways to pay for college besides borrowing money. Many people borrow tens or hundreds of thousands of dollars for college with the expectation that once they graduate, they will be assured a high-paying job that they can use to repay their loan, but this isn't always the case. Depending on the degree you are pursuing, it may be entirely possible for you to graduate from school and find yourself unable to land a job in your field for longer than the 6 month grace period you are given to repay your loan.

Other Alternatives

There are several alternatives to borrowing all or some of the money you need to achieve your higher education. They include:

• Working your way through school

Even if this means it will take longer for you to graduate, it is often better to graduate debt-free and able to go forward with your life without having to worry about repaying loans, than to get out sooner and possibly find yourself unemployed and unable to pay back the loan. Plus, your years of work through college will be a valuable asset to your resume

• Grants

Grants are offered by schools and the government and various private entities for students who have little or no income to pay for education. These grants can vary in award amount from $25 to $10,000 or more per semester.

• Scholarships

Scholarships are offered to students by many companies and private entities all over the world. Some are offered for meeting specific requirements based on race, age, or gender, others may require no more than writing an essay, and a very few are given away randomly based on the number of applicants.

Whatever your situation, or whichever route you choose to help pay for your school, borrow carefully and as little as you absolutely need to meet your requirements. Remember that for every dollar you borrow, you will find your monthly payment for the loan increasing slightly, and the degree of difficulty in repaying the loan will increase as well. Paying for college can make or break you, so spend wisely.