A recent survey by
Sallie Mae and research firm Ipsos found that more students are making shrewd
borrowing decisions for their education. This year, the amount of money borrowed
for college dropped to its lowest level in several years. More parents and
students are opting to pay for college using their savings rather than with
loans. By avoiding student loans, families are able to save themselves
thousands of dollars in interest in the long-run.
Avoiding student loan
debt is not easy, as the cost of attending college continues to rise. Surveys
have shown that students are managing the growing cost of higher education by going
to less expensive colleges. In the past four years, the number of students
attending two-year community and junior colleges has gone up by 11 percent,
while the number of students entering four-year universities has decreased by
11 percent.
Community and junior
colleges are a great money-saving option for families, as they charge less for
tuition. While the average four-year private college costs over $34,000 a year,
a two-year public institution costs about $11,000 per year on average. Two-year
public colleges are usually located close to home, and offer transferrable
credits for those who want to move on to a four-year degree. You do need to
make sure the credits you get at a two-year institution will count when
transferring to your particular four-year institution, as they might not. Doing
the research beforehand will help prevent wasted credits (and money).
School choice is not the
only way students have been cutting their dependence on loans. Students and
their families have also worked to reduce the living expenses that usually
contribute to debt. Rather than living in pricey dorms, more students are
choosing institutions that allow them to live at home. Other students are
working while in school in order to contribute more money toward their
education.
Students entering
college should take advantage of this trend and explore ways they can limit
their dependence on student loans. When researching potential colleges, pay
close attention to the yearly costs, and do not neglect to inquire about the
community colleges in your area. In order to save on living expenses, consider
schools that will allow you to live at home. If you do choose a
four-year institution, consider one that will not charge you
out-of-state-tuition. These cost-cutting decisions will save you a great deal
of money over time.
READERS,
what do you think?
Would you be willing to
go to a community college if it meant avoiding student loan debt? Why or why
not?
Reference:
Hicken, M. (2014, August
1). How Americans Are Paying for College. CNN
Money. Retrieved from http://money.cnn.com/2014/07/31/pf/college/paying-for-college/index.html?iid=SF_PF_River.
