How Not to Graduate With Thousands in Debt

Student loan debt can limit what you do once you have graduated from college. Many students do not realize how much they will need to pay each month after finishing school. There are ways to limit or avoid student loan debt altogether. It is also important to avoid credit card debt.

Limit the Amount You Borrow

The best way to avoid graduating with a lot of debt is to limit the amount you borrow. You should use several strategies to help you reduce the amount you need to borrow to attend school. In addition to student loans, you should apply for as many scholarships as possible. You can work while you are in school and follow a set budget to reduce the amount that you need to borrow to cover expenses.

Budget

Create a budget for the entire school year before you go to school. You should include the cost of housing, food, tuition, books, clothing and entertainment in your budget. Break down your expense totals into monthly amounts and stick to them. A budget will prevent you from spending too much on entertainment costs or blowing all of your money on a great sale at your favorite store. This will also let you know exactly how much you need to survive.

Work While in School

Reduce the amount you need to borrow by working while in school. Over the summers, you can work one or two jobs to help cover expenses during the school year. Waiting tables or delivering pizzas can help you make more per hour than a typical summer job, but you must be disciplined and put your tips in the bank. Another option is to take a job while you are in school. Some employers will reimburse the cost of tuition for a set number of classes each year. You may also gain experience, which will help you when you start job hunting.

Don't Use Credit Cards

In addition to student loans, credit card debt can be crippling. The best way to avoid credit card debt while in college is to not have a credit card. If you do have one, choose one with a low interest rate and pay off the balance in full each month or do not use it at all. Many people will use a credit card only for emergencies, but with careful planning you can set aside money in savings to cover emergencies like car repairs, medical bills and other unexpected expenses.