6 Keys to Staying Financially Safe in College

As most current college students and recent graduates are probably well aware, college is expensive and is becoming more so. As of May 2017, there is a total of $1.44 trillion in student loan debt in the United States, which is spread out between 44.2 million Americans. The delinquency rate for repaying these loans is at about 11.2%. Borrowers between the ages of 20 and 30 pay an average amount of $351 every month, which is more than some working individuals make in one week.

So, what can be done to negate the high cost of a college education without forsaking that education altogether? While enrolled and even prior to enrolling in college, there are some steps current and prospective students can take. The following are six key ways to stay financially secure in college.

1. Attend a Two-year Institution

Many cities host two-year community colleges that offer classes at cheaper rates. In fact, estimates show that you can save somewhere between $12,000 and $66,000 by spending the first two years of your college education at a community college. These classes can often be transferred to four-year institutions for credit, and community colleges tend to have a lot of scholarship and grant opportunities available. Additionally, many of these colleges employ student workers and have advisors who can work with you on finding the best four-year institution to transfer to once you receive your Associate degree.

2. Don't Over-borrow Student Loans

Many college students make the mistake of taking out too much in student loans. Sometimes, this is because they need to afford off-campus housing or transportation. The fact of the matter is that too many students see over-borrowing of student loans as an option to get by month-to-month in an economy that does not privilege them.

Even students who don't deliberately over-borrow tend to take out too much. This is because the federal government, when assessing your college financial needs, makes certain assumptions about your lifestyle and economic situation that causes them to tack on extra assumed expenses to your college's tuition rates. If you accept all of the loans offered to you, you could be taking out too much. Since interest accrues on loans, you can save money in the long-run by taking out fewer student loans than the government says you are eligible for.

3. Try to Avoid Borrowing Unsubsidized Loans

Only borrow unsubsidized loans as an absolute last resort. The federal government pays the interest on subsidized loans during periods of deferment but not on unsubsidized loans. Unfortunately, right now, graduate students are taking out unsubsidized student loans at a rate of over 5.8% simply because they are not being given any other choice.

Undergraduates who have a few years of college already under their belts are generally given more borrowing options and can access more subsidized loans, but current and future grad students need to be aware of the fact that they will not qualify for subsidized loans like they did while they were undergrads.

4. Take AP Courses or Dual-enroll While in High School

Before you even enter college as an undergraduate student, consider taking Advanced Placement (AP) courses or dual-enrolling in a few college courses while you are still in high school. Doing so can save you several thousand dollars and put you a semester or two ahead of the game. AP exams generally cost $89 to take and can help you eliminate the need to take one, two, or possibly even three required college courses.

5. Enroll For Courses during the Summer

As much as you might think being in class makes for a summer bummer, taking courses during the summer can save you time and money. Many of these courses are condensed and are therefore charged purely per credit hour, unlike regular courses. Attending classes during the summer can also help you cut down on the amount of school years you spend as an undergrad or graduate student.

6. Focus on Saving, Not Spending

Finally, the most practical way you can save money overall while in college is to focus on saving, not spending. Tighten your budget as best you can by foregoing some luxuries. You might also want to seek employment either on campus or with a company known for employing college students. Your schedule will require a lot of flexibility, and some employers are better equipped to handle your needs than others. Save the money you make so that, when the time might come to repay student loan debt, you are not facing wage garnishment or credit score issues. You might need to rely on a cash advance in San Antonio, TX here and there, but your need for them after graduation will likely be a lot less frequent if you save while you learn.

Whatever route you take in college, the education you get can be worth the financial burden. If you are in college or are consider enrolling, it can help to speak to an advisor in your chosen school's financial aid office.