Here are some tips to avoid excessive college debt:
1. Set up a budget, even before going to college. Consider tuition, housing, books and fees, transportation, food, clothing, entertainment, and miscellaneous expenses. Once a budget is established, stick to it.
2. Don't borrow more in student loans than needed. Use the money only for educational purposes. If there is extra loan money, return it.
3. Get a part-time job when in college. This will help you to make extra money and have less time to spend it. Work-study is a good option for those who are eligible.
4. Use the meal plan. When you add up that daily bagel and coffee from the student union, a fast food lunch, and dinner at a restaurant with friends, you may find you're spending several thousand dollars each school year with nothing to show for it.
5. Don't use a credit card for day-to-day purchases. If you (or your student) has one, pay off the balance each month. If you do not pay off the balance monthly, limit the use of credit to large or emergency expenses.
6. Apply for financial aid each year.
7. Apply for scholarships after freshman year. They're not as plentiful, but they are out there. Check with the financial aid office.
8. Meet with your adviser every semester to plan your schedule and discuss your progress. Many students do not do this, and the result is that they end up being in school (and paying for tuition and fees) for one to two semesters more than needed.
9. Consider attending a community college for general education requirements. Tuition is generally much lower than a four-year university.
10. Walk, bike, and take a bus bus instead of driving a car. This saves you money on gas and parking fees. Better yet, don't bring a car to college if it is not needed.
We would like your feedback on this Personal Finance Frequently Asked Question.
