Understanding The Real Cost Of Getting An Education Today

Parents dream of the day when their child will finish school and head off to university to train for their careers. However, the cost of attending colleges these days has begun to skyrocket, and so it’s vital that everyone understands the full implications of that strategy. Sure, everyone wants their kids to get the best job possible when they mature, but most folks have no idea how much that dream is going to cost. In an attempt to set the record straight, this post contains all the information you could need if your little ones plan to go to university during the next couple of years. Make sure you don’t overlook anything, or you might have some nasty surprises. 

Course Fees

Depending on the nature of the course the individual wants to take, they will have to pay a lot of money to their chosen college. Sometimes it can take up to five years to achieve a passing grade, and that means most students leave university with thousands of dollars worth of debt according to USA Today. Considering that, it’s vital that all parents start saving for their loved one’s education as early as possible. While it’s possible to get some loans to cover the cost, that just leaves the student with substantial debts before they’ve even started working. For the best savings, be sure to:

• Consider an array of universities

• Start saving early

Student Loans

There are two types of student loan that most people take out. The first one is often to cover the cost of course fees, and so the money goes straight to the college. In most instances, young people don’t have to start making repayments until they find a job. However, the second type of loan is for books and other equipment the individuals might require, and the payments will begin immediately. It’s critical that everyone takes a look at their options when they finally achieve their qualifications. Refinancing deals like those available from refinancestudent.loan and similar online portals could help families to save a small fortune in the long run. That is especially the case if the current debt incurs high rates of interest.

Living Expenses

It’s impossible to ignore the fact that students need to keep a roof over their heads and food in their bellies while dealing with their debt. During a five-year degree course, those costs are going to add up. For that reason, everyone must use some common sense when it comes to paying for those expenses. Students should try to find part-time jobs that will assist in reducing the burden on their parent’s bank balances. On average, estimates suggest that people at a university will spend between $15,000 and $25,000 on living expenses during their three or five years at college. You’ve got to find that money from somewhere!

With a bit of luck, people who read this article carefully should now have a better idea about the real cost of getting an education today. Use the advice to ensure you don’t overlook anything essential and nothing stands in the way of your child’s future. There are scholarships and schemes for young people who don’t come from wealthy backgrounds. Maybe you should take a look at some of those?

4 Financial Mistakes That College Students Make

Getting to college is the aspiration of many young people. This is because college education equips the young with the skills and capabilities to take over the world. College is, therefore, a time a personal development and academic progression. But that is not all that happens on campus. College students get into a lot of mischief during their stay in college. With their new found freedom, college students are free to do whatever they want and more often than not they end up doing the wrong things. Most of these mistakes are related to their finances and considering that college students have limited resources, these mistakes are usually very costly. Let’s now take a look at some of the financial mistakes that college students make.

1. Not getting scholarships.

Scholarships provide students with a great opportunity to reduce their education-related expenses. With the cost of tuition at an all-time high, scholarships help students pay for their education without taking up a lot of loans. The fact that you don’t have to pay them back makes scholarship the best way to pay for your education. Most college students, however, don’t secure higher education scholarships and those that do don’t exhaust their scholarship options. Most students have to acquire loans to pay for their education and this puts them into debt early in life.

2. Credit card debt.

Credit cards provide users with a convenient way to pay for goods and service without necessarily having the cash up front. If you feel like “I Need Money Today ASAP”, credit cards serve as the most readily available source of funds. Credit card companies offer amazing rewards and programs but the downside is that they came with high interest rates. Another thing with these cards is that they are very tempting and users are tempted to spend beyond their means. Students without a reliable source of income could, therefore, end up in a lot of debt for using their cards in the wrong way. Such debt impact one’s credit score negatively, making it difficult to acquire loans later in life.

3. Lack of budgeting.

Most students don’t budget for their funds and this usually results in a lot of financial frustrations later in the semester. It is for this reason that most students end up taking loans later in the school term; loans that they are not in a position to pay up in time and this puts them into further debt. Planning helps students stay within their means and this helps them avoid debt.

4. Using their student loans inappropriately.

College education is very expensive and most students take up loans to pay for tuition and other education costs. There are those, however, who choose to use their loans for activities that are not related to their education. You would see some uses their loans to acquire the latest designer clothes or to pay for hotel dinners. This is very bad and it has seen students take up bad loans so as to complete their education.

The ABC's Of Providing For Your Children's Education

However old or young your children are, the task of looking after them will always weigh heavy on you. The total cost of raising a child is increasing every year, and the most recent figure is $233,610! This is to raise your child up to the age of 17. After they hit 17, there are, arguably, even bigger costs afoot, and your child may have to lean on you a bit more to pay for a rental bond, or buy a car, or go to college. Education is a right for every single one of us, and depending on where you are in the world it can be incredibly difficult to save up the money to set them on the right path. What's the solution? It begins and ends, with you.

Having children is a financial hardship, whichever way you look at it, and from the moment you bring your baby home from the hospital, you will have to start thinking up ways to be financially savvy. Your lifestyle will be a big factor in how you save money. If you earn a decent wage but never manage to save money, look at what you can realistically cut back on. It’s easier said than done, but surely your children are more important than you, right?

A savings account is the simplest way to get the ball rolling. It’s the little and often approach to saving money. If you open up a savings account when they are a year old, they’ve got 17 years of savings to dip into when they're making the transition to college. Or if they don’t want to go to college, it’s money towards a car, mortgage, or a wedding. Just set up a small amount to come out of your account every month, and you will amass a fair amount of money ready for their next stage in life. Keep the account a closely-guarded secret, and it becomes a pleasant surprise for your child!

If you're at that point where it’s too late, and you cannot travel back in time 17 years, there's no need to panic. Luckily, if your child is that keen on going to university, they will work hard for it, and so it makes applying for scholarships a financially easier option. There are plenty of scholarship websites, and these are the most recommended ones to try. Lots of scholarship websites have detailed lists, and give you breakdowns of what is required. Some of the websites require you to register or pay a small amount, but these do give comprehensive details of what you will need to obtain the scholarship.

Of course, there are student loans available, but with each different loan comes a different set of criteria. As a parent, you can obtain a PLUS loan which comes with a higher interest and means that you are responsible for paying the money back, not your child, so the burden is on you. But if you are in a position to repay the money sooner, you can save money on your total interest. There are many things you can apply for, and you may as well try them all, but with each loan comes with a high-interest rate of repayment. So it’s worth bearing that in mind before you enter into the agreement, but it’s possible that you or your child could get turned down for the funds, in which case, it’s always a good idea to have a backup plan.

Apart from saving in the long-term, the real way for you and your child to pay for their education is to get an extra job. While it may not sound ideal to get a second job on top of your full-time one, it’s not the same as it was 20 years ago, where you would need to get a janitor or bartender job. Now you can do another job from your own home. There are online surveys and actual full-time hours for admin jobs you can do. If you are stuck for cash as well as stuck for time, you can do this and get everyone in the family to contribute. It can potentially be more lucrative for your child to do this rather than to get a Saturday job because they won't need to travel to the place and get more money for arguably less work. 

Saving up for your child’s future is a massive headache, and while the best solution is just to plan ahead, there are other options should you get stuck between a rock and a (financially) hard place.

Pedaling Out Of Your Old Debt Cycles

The task of clearing debt from a year ago is incredibly difficult, trying to clear debt that is potentially decades old may weigh heavy on your mind much more than you think! Looking at issues in the round, having any sort of debt hanging over your head is stressful. But if you have hit a point in life where your credit score needs to be good, say if you're buying a house, then you need to develop some smart ideas to get yourself looking good on paper, and that old debt is the first thing to examine.

A lot of people think that clearing the immediate debt is the best way to keep on top of their finances, but it’s merely keeping the wolf from the door. Tackling the oldest debt should be a priority because the interest you're potentially paying on the debt is a hefty package. The first thing to do is to do some transferring of debt like credit cards onto a zero percent package. This will reduce your outgoings, and you can start to focus on clearing the debt properly. You should also look at what debt you owed over the years. A student loan is thousands of dollars you don’t have at any one point. So look at the student debt forgiveness program. There are many flexible options to help you repay your student loan, but bear in mind that this is for federal student loans.

If you have taken a good look at what it is you owe to every credit card company, bank, or student loan organization, then the next step is to consolidate your debt into manageable packages. For example, there are many debt consolidation companies that can help in these circumstances. There are two purposes to doing this; firstly it reduces the amount of interest you would pay on numerous credit cards or bank overdrafts. Secondly, it helps with your perspective of the debt. Instead of feeling overwhelmed by the amount, it compartmentalizes it into a neater package which, believe it or not, actually helps with your mindset.

The next step is simply to address your spending habits, which can be a minefield. But the simplest step is to look at your big bills first, and then work your way down to the smaller ones. So, examine your gas or electricity bills and see if you can get cheaper ones, and work your way down to your shopping habits. Go through your bank statement and see if you can spot any patterns in your spending, especially ones borne out of habit. One shop-bought coffee on the way to your office may seem insignificant, but each coffee adds up. You can apply this to every little habit until you have got rid of the pointless spends. A last resort is declaring bankruptcy, which may sound like admitting defeat, but it can give you a clean slate with your debts and help you get out of the debt cycle. Options are out there for you to examine your finances, so be sure to use them.

Financial Issues You Need To Consider When You Head Off To University

Going to university is often one of the best ways you can score the best jobs in the future. After all, you will get the training you need to ensure you are ready for your career. However, going to university can cause many financial woes for students. In fact, this article says 70% of students worry about funding issues. With a high proportion of them worrying about paying their studies, plus their monthly expenses, it can jeopardize their experience at university. Therefore, here are some financial issues you need to consider when you head off to university, so that your studies run smoothly.

How will you pay for the funding?

You might not realize that the average degree can cost the undergraduate around $19,000 a year. Therefore, you need to consider how you will afford this before you join university. You might want to look into student loans that you can pay off after you finish your degree. Or you could talk to parents about funding part of your degree. And remember to look into grants, scholarships or bursaries which could help fund your degree. You can speak to your university about this in advance so that you know whether you are eligible.

Do I need to change my bank account?

It’s also vital that you consider your bank account when you are off to university. After all, there is a good chance that you might end up facing an overdraft during your time at uni. And if you don’t have a student account, you might face huge charges if you don’t pay it back quickly. Therefore, you should get in touch with your bank and tell them that you are going to university and want to set up a student account. As we discussed before, alongside lenient fees, they are also excellent for freebies such as discount travel. Therefore, it can be helpful during your student journey.

Am I going to struggle to pay back the debts in the future?

Before you agree to pay the fees for attending university, you need to workout if you will be able to afford to pay it back in the future. Of course, you hope to get a job that will ensure you can pay it back slowly. But you need to look into the charges that will occur with your loan if you don’t manage to pay it back. In some cases, you can get your loan forgiven by the government. But if you do this, you might face student loan forgiveness tax which can be expensive. Therefore, look into all your options before you decide to go to university.

Will you be able to afford the social aspect of uni?

It’s also vital to consider how you will afford socializing during university. After all, the costs of boozy nights out can see your debts spiraling out of control. You might want to consider getting a part-time job while you are in uni. A lot of campuses have roles you can take on for some extra money. That way, you can fund your social activities which are a vital part of being a student!

And remember to research the career you are going into after your degree. You want something that will pay well so that your time at uni is worth it.

Students blow their loans too quickly

A recent survey uncovered some surprising, and in some cases alarming, statistics about how quickly students in the UK are getting through their student loans.

According to the survey, commissioned by discount site vouchercodes.co.uk, the average student will have used up their first loan by November 20th, a full three-and-a-half weeks before the end of the first term.

What is possibly even more concerning is that one in six students confessed that they will have blown their entire loan for the term in just 28 days!

The study sought to find out what students were spending their loans on. One in three students answered saying they regularly drank “expensive cocktails”, while another 13% surprisingly indulged in beauty treatments.

As you might expect, alcoholic drinks were the second-biggest expense on average for all students. The average overall spend worked out at £45 per month. The main offender to budgets was the weekly supermarket shop that costs £82 per month on average.

Other items that you might be surprised to see on the list include new clothes and eating out, with spending on books being fourth on the list, costing on average £30 per month. Despite their low incomes students remain a generous bunch with £23 per month going on treating friends and another £18 per month going on charitable donations.

It is also interesting to note some of the regional variations in spending habits of the UK’s students.

For example, Scottish students proved to be the most spendthrift of the lot, managing to use up their loan within a mere 43 days of the term on average. Contrast that with the careful Welsh students who made their borrowing last them a lengthy 56 days on average.

The results of this survey are based on over one thousand current university students who were asked about their spending habits, excluding tuition fee payments. The average maintenance loan (which is the means-test portion of the student loan to do with living costs as opposed to tuition fees) is £3,600 per year.

So you can tell that students have very little money to stretch out but a bit of budgeting or self-control on occasion could make their finances last longer and look healthier by the end of each term.

Another way, which has always proved popular with students is to work full –time for the summer before going away to university so you have a decent amount saved up and give your loans a bit of a buffer. This way will give any student time to adjust to living on their own and having to budget for more than just a night out once a week.

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