Student Loan Dodgers

If you’re considering going to college - for the first, second or third time - it makes sense to spend a bit of time thinking and planning before you commit to going to school in a particular location.

Keep in mind that staying close to home will always be the least expensive route. Your tax dollars (and those of your parents) have funded the state universities, colleges and community colleges around you. As a state resident, your tuition rate will be less expensive, and that will make a big difference when you’ve graduated and it comes time to pay off your student loans.

Keep in mind that Federal loans can’t be used to cover living expenses, so carefully consider the colleges that are near your home. You may overlook these institutions because they’re “familiar” to you, but staying in your own back yard may be one of the best financial moves you can make. Commuting will also save you a bundle because it reduces your costs to tuition, fees, books and transportation.

Look carefully at the “scholarship” packages you’re offered. If an institution will cost $50,000 per year to attend, and you’re offered a 50% scholarship, you’ll need to determine whether or not you can really afford the remaining $25,000 bill. $25,000 is a big chunk of change, but if you don’t have it, and can’t pay back $100,000 after college, you’re better off looking at lower-cost schools.

Look carefully at your major. If you can only reasonably expect to make $30,000 right out of college, borrowing $100,000 isn’t really in your best interest. Get realistic about what you will be making after college. The Bureau of Labor Statistics can give you an idea of what people currently working in your field are making, but keep in mind that the statistics are an average of all persons in the field. Starting salaries are going to be lower, and may even be below average.