A great thing about being wealthy is not the exotic cars, palatial houses, and gadgets, but the privilege of not having to think about money. For a vast majority of college students, however, this remains a pipe dream. With ever increasing cost of tuition and rising interest rates, an estimated 70% of students in leading colleges are constantly thinking, and stressing out about money.
Such financial stressors often have life-altering implications, with 42% of students who drop out blaming inability to pay tuition or deal with the cost of living for the same. This makes it absolutely essential for students to learn ways of alleviating financial stress while attending college, and in this article we lay out a few tried-and-tested strategies to help with this.
Create A Budget
When it comes to stress of any sort, it is the uncertainty that makes it worse. Having a clear idea of what lies ahead will not make it easier, but will certainly help alleviate stress, letting students get out, and start planning and working towards their goals.
The first step in this regard is setting up a budget that encompasses everything pertaining to your college education. From textbooks and housing, to food, tuition, and miscellaneous, to get a clear picture of how much funding you need, and the various things that can be eliminated to save money.
This also helps in identifying the exact amount you might need to borrow in student loans, and other sources of funding, along with the timelines for their disbursement.
Consider Financial Aid & Scholarships
Depending on your budget, you can then work out various financial aid and scholarship options that can help alleviate some of the financial stress of college. Financial aid that is made available in the form of grants and scholarships need not have to be paid back, and are thus, essentially free money.
There are 1,000s of organizations that give out billions of dollars in aid to students each year, and the best place to seek out your options would be to complete the Free Application for Federal Student Aid (FAFSA).
Part-Time Jobs, Internships & Work-Study Programs
This might not always be feasible considering your academic workload, but if time permits, getting a part-time job, or an internship in the field of your study is a great way to earn some extra money, while acquiring useful skills.
Many companies that hire interns will be mindful of academic requirements, and will thus offer time-offs during exams, along with certifications for extra credit, offered at most colleges and universities.
Students can also explore Federal Work-Study programs, which is again a Federal Grant, which funds various on-campus and off-campus jobs for college students. This is again a great way to earn some extra money, without letting it interfere with academics.
Loan Deferments, Refinancing & More
If you are set to graduate and don’t have a job lined up yet, there are a couple of options to explore, to get some breathing space and time to get things in order.
This includes student loan deferment, that allows qualified applicants to either reduce their monthly payables, or entirely stop making payments for up to 3 years. The government even picks up the tab on interest accrued during this period, in the case of Federally subsidized student loans.
A handful of private lenders do offer deferment, but it can prove to be expensive in the long run. If you’re finding it hard to pay off your loans, the better option would be to opt for a secure student loan refinancing process, with favorable terms and rates to bring down your monthly payments.
Final Words
College is a truly transformative experience that brings students out of their comfort zone, while preparing them for the world. To make the most of this, it is essential that students remain free from the burdens and stressors of a student loan, and truly immerse themselves in the experience.
