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What Students Wish They’d Known About Paying for College Before Graduation

By U.S. News & World Report

Seth Burgett, a recent John Brown University graduate, has some advice for future college students: “Just slow down, think and get experience before you go to college,” he says. “If you’re on the fence, you don’t need to go to college right away.”

Burgett started at the University of Nebraska–Lincoln before transferring to John Brown in Arkansas after a “mid-college crisis.” He graduated in December 2014 and has around $33,000 in student loan debt, which “will keep me back from some things,” he says. But mostly, he wishes that he’d known that he could take time to really explore the value of college before enrolling.

[Discover how to get the most value out of a liberal arts degree.]

Students can learn from graduates’ financial mistakes and advice, says Jodi Okun, who founded College Financial Aid Advisors, which helps families navigate the college financial aid process, and who serves as a brand ambassador for Discover Student Loans.

Graduates often regret not familiarizing themselves with financial aid and student loan repayment terminology, she says. They wish they’d understood the differences between subsidized and unsubsidized loans and known the meaning of terms such as interest and accrual.

“They talk about how financial ignorance is not really bliss,” says Okun.

[Understand the pieces of your student loan payment.]

Others regret not learning how to budget in college, says Scott Juedes, director of student financial services and financial aid at Wellesley College in Massachusetts. When it comes time to invest in a new business venture or a graduate degree, “they wonder, ‘How do I pay a bill? How do I finance big investments in life?'” says Juedes.

U.S. News asked college graduates to weigh in on what they wish they’d known about paying for college before heading off into the real world.

Some Twitter users wrote that they regret not anticipating the challenges of taking on debt.

Others tweeted advice about budgeting and repayment, underscoring the benefits of prepaying student loans and understanding how student loan debt stacks up against other monthly bills.

Some wish they’d paid more attention to the repayment terms of their loans.

“I hear, ‘I wish I’d written down the details, whether I borrowed $2,000 or $20,000,'” says Juedes of Wellesley. Students tell him, “I didn’t even know who my lender was.”

The good news, say experts, is that it’s not too late for current students to start developing their financial skill set. Students can sign up for budgeting services, such as Mint.com, to track spending, contact their financial aid advisers with questions and estimate student loan bills with a repayment calculator.

If students develop good financial habits while in college, “more than likely they will go on after college,” says Okun.

Trying to fund your education? Get tips and more in the U.S. News Paying for College center.

More from U.S. News

8 Student Loan Repayment Myths Experts Want to See Disappear

10 Questions College Financial Aid Advisers Wish Parents Would Ask

3 Lessons to Teach Mom and Dad About Paying for College

What Students Wish They’d Known About Paying for College Before Graduation originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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