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Seven Strategies for Graduating with Less Debt


Presented by FAIRWINDS Credit Union

Posted Monday, November 20, 2017 @ 1:15 PM

As students head home for the holidays after their first semester at college, student loans probably aren’t top of mind. But, it’s actually the perfect time to talk with them about keeping their borrowing to a minimum, so they can graduate with less debt. After all, those who manage to graduate without the burden of overwhelming debt can typically achieve life’s milestones and get on the path to financial freedom sooner than their debt-strapped counterparts.

FAIRWINDS is here to help you guide that conversation with seven useful strategies college students can use to keep their debt from spiraling out of control.

Borrow only what’s essential.

Now that students have a full semester under their belts, they likely have a better idea of their costs. Making this a good time to take a look at their loans to make sure you’re not borrowing more than what’s needed for tuition, books and living expenses. That way they can make adjustments for future disbursements accordingly, because students don’t have to borrow the full amount they’re offered if it’s not needed.

Apply for everything and do it on time.  

From federal grants to little-known scholarships, there’s plenty of money up for grabs, if students make an effort to find and apply for them. They just need to ensure that they don’t miss any deadlines — especially the FAFSA deadline.

Select your classes carefully

While selecting only the classes you need to graduate may seem like a no-brainer, it’s pretty easy to make an honest mistake and take an unnecessary class. Students should meet with their advisors to make a plan for which classes they’ll take. That way they don’t spend their money and time on something that’s not going to help them get across the graduation platform.

Get a paid internship or part-time job.

Working a paid internship or a part-time job in college is a great way to get extra money for school supplies, discretionary spending and other expenses without having to borrow money. Plus, it will give students work experience that can be used on resumes after graduation, and possibly make a few career-building connections along the way.

Learn to live like a student.

Expensive nights out, new designer label clothing, and lavish spring break trips are all things that college students probably can’t afford. And they’re certainly not things that should be paid for with student loans. Instead, students will want to learn how to live frugally and they can start by taking advantage of student discounts, bargain hunting and learning to live with what they already have. This includes eating mostly what’s offered by their dining plan, putting off major purchases until after graduation and keeping impulse purchases to a minimum.

Start paying down student debt before graduation.

A few small payments made to early on can reduce what’s owed after graduation and save students money on interest. If students find they have money left over at semester’s end, they can use it to start paying down the principle on their loan before it starts earning interest. They can also use money that they’ve earned from part-time jobs along with windfalls like tax returns and money earned from selling back their books.

Does your student need more help making a plan to reduce student debt while in college? They’re welcome to stop by our on-campus FAIRWINDS branch located within the Washington Center, and we’ll be happy to help them make a plan.

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