financial advice website today released their warning to readers about taking out too much money in student loans, offering them advice for ways to borrow less to pay for school and challenging them to come up with other creative means of saving during the costly years of college.
FinanceSpectrum.coms article comes after being moved by the story of one young man who slept in his van during his years at Duke grad school in order to escape having to take out any student loans, and graduate debt-free. Mandi Woodruff of Business Insider reported in an article published on June 10th 2013 that Ken Ilgunas not only lived out of a $ 1500 1994 Ford Econoline that he purchased on Craigslist during his entire two years at Duke for grad school, but he also paid off $ 35,000 in student loan debt from his undergrad schooling within two and half years of graduating.
Ilgunas lived out the extreme version of pinching pennies and cutting costs during college, but FinanceSpectrum.com assured its readers that there are other less radical yet still effective ways to avoid having to borrow absurd heaps of money to pay for a college education.
FinanceSpectrum.com is quoted as saying, There are things our there like cheap auto insurance, cheap life insurance, cheap homes, cheap cars, but there is no such thing as a cheap student loan. To save on student loans, folks just have to get creative. What about sending your kids to community college for a couple of years, then having them finish out their concentration at a state or private university? That way they get a degree from a name-school with half the cost. Also, banks tend to offer consumers far more than they actually need to pay for tuition in loans. Many people accept the extra money, thinking itll be a good cushion for them or their kids during school. Personally I think thats the wrong way to go. Id rather not go out every weekend on borrowed money than have to pay all of it back, plus interest, once I graduate and am job-searching. There are also things like living at home, taking the bus, enrolling in less expensive online courses, and going to school in-state as opposed to out of state which costs significantly more.
The above-mentioned Bloomberg article quoted Ken Ilgunas as saying, Some people think of their student debt like a car insurance payment just something they have to pay each month. I think of it like a ball and chain something that’s keeping you from living a full life.
referred to student loans as a catch-22, pointing out that many people need to borrow money in order to acquire a college degree. A college degree in turn can generally help individuals secure jobs with higher wages or salaries than employment that does not require such advanced education. However the same loans that can help somebody earn a college degree and a good-paying job can also weigh heavily on their finances, accumulating in interest and causing financial stress.