Sponsored Newspapers In Education Content
| SUNDAY,
APRIL 3, 2016
5
CREDIT IN ACTION: STUDENT LOANS
Debt isn’t always a bad thing. In fact, borrowing in order to pay for college can pay off
big-time down the road. Research shows that a degree will increase your earning
potential and give you more leverage to further your position in life. The question is:
how much debt is right for you?
THRIFTY LIVING: SMART TIPS FROM
STUDENTS WHO’VE BEEN THERE
•
“When shopping, make a list and only buy what’s on the list.”
•
“Try to avoid eating out all the time, and don’t buy snacks from
vending machines.”
•
“If possible, save at least 20 percent of each paycheck.”
•
“Track your spending.”
•
“Learn to cook!”
•
“Spend less than you make. Then go make some more and stuff
it in a savings account.”
•
“Cut back on the everyday little things so you have more leeway
when the big purchases pop up.”
• “
Ask yourself: Does what I’m buying serve multiple purposes and
will I want it down the road?”
• “
Pay off your credit card each month.”
Tips courtesy of BECU Scholarship Recipients
CREDIT 411:
You can always
improve your credit
score. Even if you’ve
declared bankruptcy
or gone through
foreclosure. As you
change the way you
handle credit, your
score will gradually
change too.
How much should you borrow?
If you decide to take out a student loan, you’ll want to determine an amount that’s
affordable to re-pay. Start by thinking about your future income and other expenses.
What’s a reasonable starting salary for someone in your career? A good rule of thumb
is to try to limit the sum of your student loans to half of your starting salary. This will
keep monthly payments within 5-10 percent of your gross income.
Source:
How to graduate with less debt
For many people, student loans seem like a natural path to paying
for higher education. But relying too heavily on loans can land
you in a pile of debt that could take years—even decades—to
pay off. Consider other options that can help you achieve
your dreams of both higher education and financial stability.
• Attend a public university, rather than a private one
• Pursue scholarships and grants
• Look for work-study opportunities on campus
• Attend a local community college for two years,
then transfer to a public university
• See if your school district offers Running Start or
other dual credit programs to earn college credit
while you’re still in high school
• Test out of college courses via AP courses
• Live at home with parents or family, if you can
• Stick to a budget; keeping your overall
expenses low will reduce the amount
you have to borrow
• Median debt for a student upon graduation: $35,051
• Percentage of students who are unemployed at graduation: 8.5%
• Median starting salary for those who do have jobs: $45,478
• Standard loan repayment plan: 10 years
• Average yearly loan repayment: $4,239
Source: nerdwallet.com; Economic Policy Institute
QUICK FACTS ON STUDENTS AND THEIR DEBT
