student loans

Most students graduate from college with some kind of debt, with many carrying both student loan and credit card debt. Student loans are widely considered to be “good” debt because they reflect an investment in your ability to make more money in the future. Although being $20,000 in student loan debt may be considered “better” than being $20,000 in credit card debt, both represent a huge responsibility, the magnitude of which most students in their late teens and early twenties do not have the life experience to understand. Even if student loans are necessary to help cover the ever rising cost of a college education, as in many cases they are, the availability of other means of financial aid can help reduce the debt a student incurs from student loans.

Earning a scholarship for college can alleviate some or the entire burden associated with college expenses. Even a small scholarship award will save you money in the long run and is worth exploring. Scholarships are usually awarded to students who qualify based on academic, athletic or artistic achievements, though they can also be awarded for other reasons. Scholarships are sponsored and do not have to be repaid by the recipient, making them a great way to minimize or prevent student loan debt.

Scholarships are extremely competitive. In order to be eligible for a scholarship, a student must maintain consistently outstanding performance throughout high school. It is a good idea not to base your college financial planning solely on the expectation of a scholarship for one talent, for instance, athletic ability. Even if you are an MVP likely to be awarded an athletic scholarship, you still need acceptable grades and performance on standardized tests in order to qualify, not to mention a safety net in the event that you become injured and cannot participate in your sport. Involvement in clubs and organizations is also important for many scholarships.

Another way you may be able to reduce the amount you borrow for student loans is determining whether you qualify for financial aids or grants, which unlike student loans, do not have to be repaid. Federal Student Aid, an office of the U.S. Department of Education, distributes financial aid totaling over $80 billion per year, according to http://federalstudentaid.ed.gov. To find out if you qualify, fill out the Free Application for Federal Student Aid (FAFSA) at the Federal Student Aid website within the designated timeframe.

While student loans can be an excellent means of propelling your education and future career prospects, you are ultimately responsible for repaying the amounts you borrow. Exploring every avenue for reducing those amounts is effort for which you will thank yourself later.

About the Author: Evelyn Saunders, a retired teacher, is the editor for student-loans.net, a provider of private student loans and information on student loans and consolidation. For more information, please visit http://www.student-loans.net