Winds of Change - College 2017 - 16

Continued from page 15

BE STRATEGIC ABOUT
LIFE BALANCE

The authors of the Columbia study acknowledge that work and family obligations
outside college can constrain students' ability to take a full course load as well as their
ability to do their best in class. As with so
many things in life, it's a balancing act.
Before you take on a job, investigate
Federal Work-Study opportunities. Like
scholarships and grants, work-study is a
type of financial aid that doesn't have to be
repaid. Eligible students make at least the
federal minimum wage, and many employers are willing to work around your school
schedule. There are limits to how much
money you can earn through work-study,
but it's a possibility to explore.

HIGHER EDUCATION
HOW-TO
Check out these websites
for info on completing
college without breaking
the bank.
cappex.com
studentloanhero.com
collegefund.org
collegeboard.org
thebalance.com
debt.org
college-insight.org

with payments that are less than 10 percent of
your monthly income before taxes.
When payback time gets close, don't
panic. Take an inventory of what you owe and
mark the due dates on your calendar. Experts
recommend setting up regular, automated
loan payments so that you can build your
credit history. And look into your borrower
benefits: some lenders will reduce your
interest rate if you sign up for automated
payments. In addition, if your lender offers a
payment grace period after you graduate, take
it. You can begin to set aside monthly
payments during those six to 12 months, and
have some extra funds ready.
BE STRATEGIC ABOUT
REPAYMENT

If you're managing both school and work,
there are some common-sense guidelines.
Financial aid specialist Katie Wornek
emphasizes the importance of following a
regular routine with steady sleep habits and
staying organized. "Whether you use a day
planner or set reminders on your phone, it's
important to keep track of your responsibilities," she cautions. "Try to plan as far in
advance as possible."
And don't go it alone - having a support
network such as an AISES Chapter or study
group can be a great way to stay connected
while you take on the world. It's also
important to know when to ask for help. The
student services office should have resources
that can help you manage stress and keep
your various priorities in perspective.
On the upside, maintaining a dual track
of work and study can establish habits that
will serve you for the rest of your life. And if
you can get a part-time job in your field,
you'll have an opportunity to network, add
some muscle to your resume, and prepare to
hit the ground running with that diploma.
BE STRATEGIC ABOUT
MANAGING STUDENT DEBT

If you make an educated decision to take out
a student loan - or more than one - keep
careful track. Student loan specialist Kantrowitz advises that total college debt should
not exceed your total annual income after
graduation. Another rule of thumb: take out
no more debt than you can repay in 10 years.
Follow that guidance and you can end up

16 WINDS OF CHANGE * 2017-2018 SPECIAL COLLEGE ISSUE

Financial professionals recommend speeding up repayment if possible. "One of the
biggest changes I implemented right away
was demolishing my student loans through
extra monthly payments," explains Student
Loan Hero's Josuweit, who's free of debt after
owing more than $107,000. "Over the years,
I consistently overpaid my loans to reduce
the principal, pay down debt faster, and save
money on interest." If you decide to pursue
this tactic, first see if there are prepayment
penalties in your lender's fine print.
If you ever become concerned that you
can't make payments regularly, discuss your
options, like an extended repayment plan,
with your lender. There are also ways to
consolidate loans, through either a federal
consolidation loan or a private lender. And if
an unexpected setback occurs, you can look
into loan deferment or forbearance - but if
you don't make interest payments, that
interest will accrue and be added to your total
debt, so these are important decisions that
hopefully you won't have to make.
You should also know that, in certain
cases, borrowers are able to qualify for loan
forgiveness. One program is Public Service
Loan Forgiveness, which releases the
obligation to repay federal Direct Loans for
graduates who've made 120 qualifying
monthly payments while working for a
government or not-for-profit organization.
While there are options to change
repayment terms in some cases, at the end of
the day, the goal is to emerge from college
with as little debt as possible, with a wealth
of career and earning opportunities. Less
debt means greater peace of mind in your
future. It all begins with becoming informed, managing your time and money
thoughtfully, and staying focused on earning
your diploma. ■
aises.org

ISTOCK

the more common 12 - paid between 10
percent and 20 percent less in tuition and
fees by the time they earned their degrees.
If you're still in high school, take
Advanced Placement (AP) courses if you
can. Once you pass the class and an exam,
you'll earn college credits. Another option
is taking a class or two at a nearby university during your summer breaks, then
transferring the credits to your primary
college. Earning extra credits on the side can
help keep you on track to graduate in four
years, and perhaps even position you to
graduate early - reducing your overall costs
and realizing your post-graduation earning
power sooner.
But beware: taking on too many courses
too soon could lead to dropping courses -
and losing the money and time you spent on
them. It's a good idea to talk over your
course load with your academic advisor or
another mentor. The ultimate goal is getting
that degree without undue delay while also
staying in the best possible financial shape.

http://www.cappex.com http://www.studentloanhero.com http://www.collegefund.org http://www.collegeboard.org http://www.thebalance.com http://www.debt.org http://www.college-insight.org http://www.aises.org

Winds of Change - College 2017

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