You may be a student or a parent whose child wants to go to college. However, you might be worried about him getting into the top schools and the financial responsibilities of the studies. Read more about the top schools in this link.

Today, the average borrower graduates with a debt of $25,000 or more. You want to know this since there are things to worry about, such as the price tag. Tuition fees rise every year, and you find yourself or your kid burdened with debt. Some presidents took action and made specific plans to combat the rising student debts and college costs.

Know that every dollar that goes on a loan should go to lesser priorities like having children, buying a house, getting a car, or starting a family. Most of these costs a lot of money, and you might be in a tight spot if it takes a few years before you can repay anything. To avoid this, here are some tips that can be helpful for you.

1. Don’t Take an Excessive Amount of Loan

Calculate and have a ballpark estimate of the total debt you’re in when you graduate from school. Use sites like Glassdoor, pay scale, or to get more information about the expected salary for your future job. Ideally, you should be paying only at least 10% every month on the loan when you’re getting your monthly salary. More about figuring your salary in this web address:

If you’re always finding yourself paying about 15% of the gross income to the debts, you might be struggling with your lifestyle, and there may be a need to work two jobs to pay back everything. It’s best to go into a deeper analysis of your budget and see how much you can save. This includes the tax benefits, the amount your relatives can help you with, and emergency expenses because life can change instantly.

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2. Free Money Can be Everywhere

In college, free money can mean grants and scholarships that you won’t eventually need to pay back. Various sites may offer free scholarships, and they can fund almost 30% of the costs. Many students may start figuring out how they will pay for their tuition until the spring of senior years, and at this time, they have missed most of the deadlines given by private institutions and universities.

It’s possible to win scholarships even if you’re currently in elementary school. Spelling bee competitions, athletics, and others may grant scholarships based on merit. You might also want to check with your family’s employers for scholarships for their children.

However, it’s best if you don’t expect too much and be optimistic when it comes to grants. According to statistics, only about one in eight students get a scholarship from various programs. The amount covered each year is roughly $2,800, and this is not enough to cover tuition in many colleges.

3. Get Federal Loans whenever Possible

If you need to borrow, there are FAFSA or Free Application for Federal Student Aid available for you. With this info alone, the college’s department can help you identify work-study conditions, loans, and grants where you might be eligible. Some schools can even offer you a financial package, and you need to fill up the forms.

Federal loans for undergraduates may be advantageous because the interest rate is usually lower. There’s also an option for you to refinance undergraduate student loans through the help of firms afterward if you find a lower rate. With this said, there are two kinds of loans available to many people: subsidized and unsubsidized ones.

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Some companies have decided to drop the interest rate from 7.9% to only 5.41% when comparing several options. This can be a huge help, and sometimes, these figures are closing the gap between federal loans and private lenders. If the rates are going up, know that they will only apply to those debts that one will take in the next year.

In a federal loan, there’s also a deferment period to know about. After graduation, most borrowers will be given about six months to get a job before repayment. On the other hand, private institutions may need you to repay these immediately, and there’s a need for a co-signer.

4. Private Lenders Can be an Option

When you’ve already maximized your private loans, this is the time when you can consider a private lender. They can bridge the gap to your other financial needs and make sure that you’re going to graduate on time.

It can be hard when it comes to comparing the upfront pricing of private lenders. However, you may want to look for those that are offering fixed rates and provide at least a 15-year repayment term, so everything won’t be challenging when you’re in the process of repaying them. Look for options online, and make sure to use a calculator.