3 Unconventional Ways to Graduate College with Less Debt

The cost of college tuition has increased so much in recent years that the value of a college diploma is now in question. However, despite the cost, a college degree is still a prerequisite to getting hired in many fields. To companies, college is more than just the diploma; it is a valuable life experience. By graduating, you are demonstrating that you are self-motivated, can manage your time effectively, work well with others, speak and write clearly and possess many other fundamental skills that employers seek when filling open positions.

 In addition, college is not just about figuring out what you want to do, but who you want to be and how to get there. So, before deciding that the cost of tuition puts college out of your reach, read on for some unconventional ways to get a degree without incurring an unmanageable price tag.

Do your homework and get hired FIRST

Recent high school graduates oftentimes don’t realize that many large employers will finance all or part of your education as part of your benefits package. That’s right; a college education courtesy of your employer. This option means you will be busy, working and taking classes in your spare time. However, chances are if you are reading this article you were planning on working while attending school anyway. Rather than take the first restaurant server job you're offered, do your homework and find a job in a company that values educated employees. An added bonus is that by the time you graduate, you'll have years worth of solid work experience - a quality that many recent college graduates lack and could put you ahead of the competition for your dream job.

Taking this idea one step further, if you can find a staff job at a college that allows employees to attend classes, working on campus will make this process very convenient and you'll be able to get more involved in the typical college experience. 

Start smaller

Start your college career at a community college. More and more community colleges and universities are teaming up to make transitions from one to the other natural and seamless.  The classes will be small, the experience less overwhelming and the tuition rates are often half the cost of a university. When you finish your two year degree, transfer to the university for another two years and by the time you are finished, you’ll have a bachelor’s degree for a fraction of the cost your fellow graduates paid (or will pay depending on their loan situation).

Start earlier

If you are still in high school, check to see if your school has reciprocal agreements with colleges that allow you to take college courses while in high school for little or no cost. You could graduate high school with college credits without shelling out a dime.

A college education is an investment that doesn't have to be a burden. Don’t let short term financial realities affect your long term goals.

source: infobarrel.com

4 Tips to Help 30-Somethings Handle Student Loan Debt

By the time most college graduates reach their 30s, they've been dealing with student loans for years. Yet increasingly, even 30-somethings still face big challenges from their outstanding college debts, and those challenges are affecting the way they manage the rest of their financial lives. Homeownership rates among 30-year-olds have fallen much more dramatically since 2008 for those with student loan debt than for those without it, according to a recent Federal Reserve Bank of New York study.



Yet many people in their early 30s have either already started a family or plan to do so in the near future. That raises the question of how to balance your own financial needs against those of your children in order to reduce the odds that your kids will suffer under the crippling weight of excessive student loans of their own.

Let's look at some tips for getting your own debt paid down and for preparing for potential family educational costs down the road.

1. Put Student Loans in Their Place.

Many borrowers assume that they should always pay down their student loans as quickly as possible. Yet even though paying off those loans can give you a psychological boost, it's not necessarily the smartest move if you have other debt with less generous terms and higher finance charges. By understanding the terms of your student loans as well as credit-card agreements, car loans, mortgages, and other debt you might have, you can identify the highest-cost debt you have and prioritize getting that paid off first. Even if that means waiting longer to retire your student loans, doing so will still save you money in the long run.

2. Don't Skimp on Savings.

Whether to put money toward savings and investing when you have outstanding student loan debt is a subject of debate, with good arguments on both sides.

But to take advantage of the tax deductions and free employer-matching contributions you get from contributing to a retirement account, it's worth diverting extra money away from paying down student loans, especially those with low interest rates in the 3 percent to 4 percent range. As your income increases, you'll be able both to stay current on your loan obligations and to set money aside for other important financial goals.

3. Make Your Employer Pay for More School.

As you advance in your career, getting more education and boosting your skills might be a lucrative move. But once you're in the workforce, you don't necessarily have to pay for those classes yourself anymore. Many employers have recognized the value of investing in their employees through tuition reimbursement programs, which will pay you back for all or part of your costs. Availability and conditions differ from company to company, and typically, the education has to be connected to your job. But they're a great way to avoid adding to your student loan debt.

4. Don't Let Student Loan Debt Hit You Twice.

As heavy a burden as today's young graduates carry, educational debt among their parents is also reaching epidemic levels. In 2011, parents received $10.6 billion in Parent PLUS loans, a 145 percent increase since 2000, even adjusted for inflation, according to a study from The Chronicle of Higher Education and ProPublica. And the size of average individual loan is up as well, by about a third to nearly $12,000 in constant dollars. If you have kids or plan to, you'll want to take steps to ensure you don't end up facing a huge loan burden a second time around.

Put time on your side by setting up savings programs for their college educations now. As your income grows and you rise into higher tax brackets, the advantages of using a tax-favored college savings strategy such as a 529 plan increase in value. As with any market-based investment and saving strategy, 529 plans work best when you give them as much time as possible to produce strong returns. Moreover, 529 plans have very small minimum starting investments, so you can start a account without placing too big a burden on your finances.

source: dailyfinance.com