June 20, 2013

Posts Comments

Have Questions? Call us:

Get a call back Chat online with a counselor
As Featured In: abclogo cbslogo nbclogo newsweek newyorktimes
You are here: Home / Student Loans and Education

Cost of Higher Education Up 440% Over Last 25 Years

August 27, 2012 By 1 Comment

http://blog.vecci.org.au

 

That’s just one of the sobering pieces of information given in the below infographic.

With costs at an all-time high, some feel that getting a professional certification, starting a business, or joining the military would be better investments than going to college.  And of course, there are many success stories from people who never graduated or went to college.

But many still insist that the degree remains worth the cost.  Some studies have shown that those with degrees have more job stability in addition to more opportunities for employment.

Either path could be disastrous if you don’t have some kind of plan.  With so many personal factors that may not be included in studies and infographics (What do the future job prospects look like for your major?  Where do you plan to live?), it is definitely worth taking the time to explore your options and think about well in advance.

 

Click to see full-sized image.

Source: www.schooltutoring.com

 

Filed Under: Debt, Economy, Education Costs, Featured, Student Loans and Education

Is Student Loan Debt Out of Control?

October 20, 2011 By 5 Comments

student loan debtIt’s becoming more and more common for young adults graduating from college or other higher-education programs to end their educational career with high amounts of debt. But how much is too much when it comes to student loan debt? At what point is the debt load that students are taking on too much to shoulder?

A recent USA Today article reported that total outstanding student loan debt will exceed $1 Trillion this year.  That is a LOT of student debt. For many graduates who are just starting out, their ability to pay back what they owe is limited or even prevented by their earning potential. It’s a tough job market out there and not all graduates are able to find employment right away. Many young adults get married and start families – which further limits their ability to pay back high amounts of debt.

Looking back at my own experience with Student Loans I have regret. When I graduated from college I was only able to find a part-time position working at a residential youth center. I was making a low wage and working less than 30 hours a week. After a year, I decided to move back in with my parents to save money so I could work on paying back my student loans (since I had deferred them when I was only working part-time.)

I paid on my loans for about a year and a half , but by that time I was married and expecting my first child. After the birth of my baby, I only went back to work part-time and couldn’t afford my loan payments again. This cycle continued on and off for a number of years while I had another baby and we moved several times. Each time my loan company was happy to grant me a deferment on my account, but the interest continued to accrue. By the time I had been out of college for 12 years, the amount I owed on my student loans had increased by roughly $8000.

I am paying on my student loan debt now, but they are in an extended payment plan to keep the payments manageable. Unless I win the lottery, I will be paying on my student loans until long after my own children have graduated from college…..and THAT is a sobering though.

I’m not sure what the answers are – it’s clear that education costs are rising and will continue to rise. It seems inevitable that students will need to continue to shoulder some of the cost of their education as parents are increasingly unable to foot such a large bill (I know I won’t be able to pay full education costs for my kids!)

What are your thoughts? Are there solutions to handle the high levels of student loan debt young adults are taking on? What about the rising cost of college education? Share your thoughts with us in the comments!

Filed Under: Featured, Student Loans and Education Tagged With:

5 Benefits of Graduating During a Recession

May 20, 2011 By 1 Comment
college graduate holding a "need job" sign

photo credit it-career-coach.net

The news is full of doom and gloom for recent graduates.  Student debt is on the rise, unemployment is high and college graduates are flocking back home to shack up with mom and dad.  While this may not seem like the ideal situation, there are benefits to graduating during a recession.  (Feel free to share these with mom and dad as well)

  1. Learning how to budget – If you have never balanced a checkbook or watched your spending, now is the time to get a swift lesson in frugality.  Graduating during a recession and living through a bit of unemployment will teach you how to manage your money and live on a limited budget.  Just make sure you avoid the credit cards!
  2. Learn to be resourceful – Unemployment provides lots of opportunities to be resourceful when it comes to finding short-term income or providing for your basic needs.  Learn to sew, garden, collect coupons, etc.
  3. Exploring new avenues – One benefit of a competitive job market is you may be forced to think outside the box and apply for jobs you may not have previously considered.  This may open your eyes to a new career path or help you figure out what you do and do not want in a job in the future.
  4. Expand your skill set – Take this time to learn a new skill or attend free workshops/webinars to enhance your resume and show employers that you are using your time wisely.
  5. Rejuvenate – Have you been stressed out, living on little sleep and eating poorly the last few years?  Take this time to get back on track and put some balance in  your life.  Giving yourself a (small) break and focusing on your mental and physical health will prepare you for your next step.
Filed Under: Budgeting, Career, Cheap Living, Featured, Financial Education, Money Management, Student Loans and Education Tagged With: , , , , , , ,

5 Things Not to Do In a Job Interview

May 11, 2011 By Leave a Comment
Man at a job interview

photo credit tips-job-interview.info

Whether you are a recent college graduate or back on the job hunt after several years in the field, interviewing for a position can be a daunting experience.  First off, congratulate yourself on having snagged an interview.  In this economy, getting an interview is half the battle when it comes to finding a job.  Now that you have the company’s interest, make sure you can deliver.  As you gear up for the big day, try to avoid these 5 ways that will eliminate your chances for a second interview.

  1. Look at your watch or cell phone during the interview.  In fact, it’s probably best to leave your favorite electronic device in you car while you are meeting with potential employers.  If you decide you must bring it in, make sure you set it to silent (not vibrate) and store it somewhere out of sight.
  2. Give interviewers a blank stare when asked what questions you have about the job or company.  This indicates that you have not adequately familiarized yourself with the company/position or your just not that interested.  Employers expect you to have (intelligent) questions about your potential future job.
  3. Dress inappropriately for the interview.  While its common sense that you shouldn’t wear jeans and a T-shirt, research the company to see what type of dress best suits the corporate environment.  Different companies/industries may have different standards when it comes to dress.  I have heard several stories of people being “over-dressed,” indicating they may not fit in with the corporate culture.  While this is probably the minority, it is definitely something to research when you are preparing for your interview.
  4. Come to the interview without examples of your work.  Employers interview more than one candidate for the position, so it is important to make yourself stand out from the competition.  Bring a portfolio of your work that is most relevant to the position for which you are applying and highlights your skills.
  5. Reiterate your resume.  If you have been asked to come in for an interview, assume employers are familiar with your resume and qualifications.  The interview is a chance for you to expand on this and to let them get to know you a bit better to determine if you are a fit for their company.  Make sure to use this opportunity as a chance to highlight some of the skills/experiences you have had that can’t be inferred from a resume.
Filed Under: Career, Featured, Student Loans and Education Tagged With: , , , , , , , ,

Money Lessons for Leaving the Classroom and Entering the Real World

May 9, 2011 By Leave a Comment

college graduate caps and gowns

photo credit today.msnbc.msn.com

It’s May, which not only means Mother’s Day, it also means Commencement Month. The bad news for college grads is that the unemployment rate is still high and employers can still be picky about who they hire.  The good news however, is that the economy is improving and companies are hiring.  In 2010, companies were receiving 40 applications for every entry-level job posted.  This year it’s 21.1 applications, according to the National Association of Colleges and Employers.  I was talking about all this with one of our interns who is graduating and is, understandably, wondering what the future holds.

So I put together a few thoughts from our conversation.

1. Get the best first job.

Bottom line, make some money.  Your first job probably won’t be your dream job, but a paycheck it better than nothing. You want to get the best first job you can that will meet your needs, either financially or starting out on the career path, or both.  It’s always easier to get a job when you have a job and are getting experience.  If you really can’t find anything, see if an internship in your field is available.  Don’t sit around waiting.

2. Learn to Save

Best lesson ever, and if you do it from the start you’ll develop a habit that will serve you well your entire life.  Pay yourself first.  Save 10% or more of your paycheck. Put some in a savings account for emergencies and put some into an IRA to start saving for retirement.

3. Don’t Ignore the Student Loans

If you don’t have a job, contact the student loan officer to ask for a deferment. Most places are willing to do that right after collect.  But don’t forget, the loans must be repaid. Ignoring the payments will hurt your credit score which may cause problems in the future when you are looking to buy houses and cars.

4. Watch the Debt

Don’t just whip out the credit card for everything. Learn to save for what you want. The new video game console and cell phone are shiny and new, but if you can’t pay off an item right away, take that as a sign you probably can’t afford it and shouldn’t buy it.

Filed Under: Career, Featured, Financial Education, Student Loans and Education Tagged With: , , , , , , , ,

Top 5 Worst Reasons for Taking Out Student Loans

April 28, 2011 By 1 Comment

 

Graduation cap on top of pile of money

photo credit knowledgecloset.com

According to a recent article by MSN Money, college graduates are leaving school with an average student loan debt of $24,000.  Student loan debt has been the subject of much debate, forcing college students to examine the real cost of education.  While traditionally student loan debt has been seen as “good” debt, we have to wonder if this opinion will change as students continue to rack up large sums.  While loans may be the only option for some to attend an institute of higher learning, it is true that many students could avoid student loan debt by pursuing other options.

 

During my time in school I have heard some interesting reasons for taking out student loans.  Here are the top 5 worst reasons I have heard for taking out student loans: [Read more...]

Filed Under: Cheap Living, Debt, Featured, Financial Education, Student Loans and Education Tagged With: , , , , , , ,

In Transition: When to Purchase Temporary Health Insurance

April 27, 2011 By 1 Comment
Money and bottle of perscription medication

photo credit lemonadelife.com

College students around the country are gearing up for graduation and making plans to move on to that “next phase,” whether it is entering the job market or continuing their education.  While most college students count down the days until the last exam, what they may not realize is that they are potentially counting down the days on their health insurance plans.  While coverage differs across providers and plans, many providers do not continue to cover students under their parent’s insurance once they have finished school.  With the job market flooded with applications, it is not likely that many students will transition directly to the professional realm immediately upon graduating.  This period of part-time or unemployment may leave these individuals vulnerable if they are not covered by their current health insurance during this time. [Read more...]

Filed Under: Cheap Living, Featured, Financial Tips and Tricks, Medical Debt, Student Loans and Education Tagged With: , , , , , , , ,

4 Simple Ways to Kick Your College Student Out of the Financial Nest

February 11, 2011 By 1 Comment

a college graduate asks for money holding a diploma If your weekly call to your college student normally ends with the words “can you put some money in my account?”, then this post is for you!  If junior has headed off to college and is draining your bank account, you know that it can be a strain on family finances.  In this economy, you simply can’t afford to fully support them and need to find a gentle (but effective) way to ease them out of the financial nest.

Although I supported myself during college, I can still think of some surefire ways my parents could have motivated me to start earning my own cash.  My apologies in advance to the college students out there whose parents may be using the following torture, I mean tactics, to give them the boot.

Steps to cut them off

1. I thought I signed up for college, not the military! – It’s time for financial bootcamp.  What does that entail?  Only paying for the basic needs for survival such as shelter, a small food budget, and tuition.  Gone are the extras such as cable, money for eating out, and luxury spring vacations.  Nothing says get a job like being stuck at home with mom and dad on Spring Break while all your friends are at the beach.

2. What’s mine is yours – Agree to put money in their account if you can have access to their financial statements so that you can see where the money is being spent.  Students will think twice before spending money on luxury items if they know they have to explain it to their parents.  Want to take it a step further?  Ask them to provide receipts for any cash they spend.  That is definitely the extreme, but hey, desperate times may call for desperate measures.

3. 2 + 2 = 4.  Want to empower your student to start earning a wage?  Agree to match what they earn (up to a certain amount).  This will help teach them the value of earning a living and will take some of the financial burden off your shoulders.  This will also help your student keep some sense of freedom and learn that money can only be earned when they work for it.  A win/win if you ask me.

4. Of course you can always try to verbally address the situation and simply ask that they either help support themselves or cut down on their spending.   Having an open and honest conversation about family finances will help you student realize the reality of the situation and make them feel that they are a part of the decision making process.

Whichever method you chose, educating your college student about money management and finance is a great way to help prepare them for post-graduate life.  With a large percentage of college graduates moving back home, it is important to address the issue of saving and earning a wage early on in their collegiate career.

Filed Under: Cheap Living, Financial Tips and Tricks, Money Management, Student Loans and Education Tagged With: , , , , , ,

5 Ways to Make Yourself More Marketable

February 9, 2011 By Leave a Comment

hiring sign

No doubt about it, the job market is a tough place to be right now.  While that is enough to get you down, don’t let it derail your goals of landing a great job.  Necessity is the mother of invention, right?  It’s time to make yourself stand out from the crowd and make potential future employers take notice of you (in a good way).

5 ways to make yourself more marketable:

1.  Create your own “brand”. You are a hot commodity, and therefore need to be marketed as such.  Create a website to market your talents, showcase your work, and provide information on your background and experience.  This can be an inventive way to display your portfolio to potential employers and provide them with additional material to judge your ability for the position.

2.  Joining a professional association can be a great way to network and rub elbows with influential people in your industry.  If you have great people skills, finding a place to meet potential employers may be all the help you need to get your foot in the door.  Be aware that most professional associations do charge a membership fee and these can vary in price.  Make sure that you can afford to join and look for any potential discounts you may be eligible for (some offer student memberships, etc).

3.  Volunteer in your spare time.  Volunteering is another great way to network and meet other professionals.  Find something that you are interested in or an area that is related to your industry and pitch in a few hours a month.  Not only is it a great way to give back to the community, it also builds character and shows that you are involved in local or state projects.

4.  Get a certification.  If you are still in school, you can often combine your undergraduate or graduate degree with a certification in a particular area.  Most certifications can be obtained by taking certain courses and will not cost the student any additional money.  Completing a certification can help you stand out from other candidates with a similar degree and may allow you to specialize in a certain area.

5.  Design your own resume template.  Over the years I have seen (and submitted) many resumes and the resumes that are most memorable are those with a unique design.  Create your own personal resume template to enhance your “brand” and pique the interest of potential employers.

Standing out among other qualified candidates is a necessity when it comes to getting the job.  Instead of pulling out that wacky tie or making a bad attempt at office humor, use these 5 tips to make yourself more marketable to employers.

Filed Under: Career, Financial Tips and Tricks, Student Loans and Education, Uncategorized Tagged With: , , , , ,

Eliminating The Heavy Weight of Student Loan Debt

February 8, 2011 By 1 Comment

diploma and piggy bank

USA Today reported recently that for the first time Student Loan debt in the USA eclipses the amount of debt consumers owe on Credit Cards. It is reported that Americans owe a collective 887 Billion plus in student loan debt and the figure is growing. This is a daunting amount of money when you figure that this means the average student is graduating with a debt load that can seriously hamper their financial future.

So what can you do to reign in the amount of student loan debt you or those you love take on? Here are just a few tips:

  • Pursue EVERY type of financial aid available to you: Grants and scholarships may be a lot of work during the application process, but the alternative can be far more costly than your time. For every scholarship or grant you secure you are quite literally putting money back in your pocket for the future.
  • Pick a less expensive school: If I had it to do all over again I may have made a different decision about the type of school I attended for my degree. I picked a small, private, out of state (read, expensive) school over a large state school. Had I chosen differently, my post-college loan numbers may have looked far different.
  • Always pursue Federal loans over private loans when borrowing for school: As a rule of thumb, Federal loan programs are less expensive and have better repayment terms than private loans.
  • Consider working your way through school: There is certainly no shame in taking a few extra years to finish your degree while you work to pay expenses. Students who are working and paying for their education as they go along typically take their studies more seriously and are highly committed to their education since they have already experienced first hand the value of what they are paying toward.
  • Never borrow more than you absolutely need: I have been told by people who work in Financial Aid departments that it is VERY common for students to live off of their student loan disbursements during school. If it comes down to hard choices I would always advocate for a cheaper lifestyle or working more hours over shackling yourself to a large amount of student debt. That pizza that you purchased with your student loan money isn’t going to seem worth it if you have to forgo purchasing a home a few years down the road because you owe too much.
  • Make sure you know what you are signing up for: It should go without saying, but you should never sign a contract or loan document without FULLY understanding the terms and conditions. Student loan debt will follow you until it is paid and is nearly impossible to discharge through bankruptcy or debt settlement. If you don’t full y intend to pay it back, don’t sign the papers!

These are just a few tips for dealing with Student Debt – do you have anything to add that would help our readers out? We would love to hear your tips!

Filed Under: Featured, Student Loans and Education Tagged With: , , ,
« Older Posts