A salaried job does not always comfort students who are pursuing full time education. The technological advancement in the field of education has made higher education a lot costlier. We just heard on the news that over 140 colleges and universities are charging more than $50,000 per year to attend their institution. At these prices, that means that either the student or their parents will be in debt to a minimum of $200,000 or more when they graduate. If they are lucky enough to live at home, they can control their expenses to some degree, and if they can get a part time job, they can also perhaps make enough to meet their daily living expenses. But unless they can gain a scholarship of some kind, they will be in debt for a very long time when they graduate.
At these prices for education, any student will have to obtain a truly well paid job in order to repay the student loans and money that is owed to parents etc. If not they will be paying on these loans for most of their adult lives. On the other hand, if you do not obtain a college or university education, the high paying jobs are almost blocked for many people except the truly gifted and entrepreneurial people who have learned how to leverage their skills to make a lot of money.
Education for the Rich
Education after high school is becoming more and more for the rich and the rich only. Student loans at these levels for students who are pursuing full time education are just not practical if you must repay these loans when you graduate. Parents of young children who want them to be able to attend higher education really must begin saving money as soon as possible to help meet these expenses. Even if you can only save half of this it is a huge help to students. Once they graduate and obtain a salaried job, they can begin to repay these loans.
There are ways for students that may not have a lot of money to still make it. We have heard of people living in cars while attending school and really focusing on keeping their costs low. Living in a car is a bit of a stretch, but some people will go to any lengths to get that education and open doors for them later in life. Besides winning the lottery, there are other ways to obtain an education and managing the size of your student loans.
Some students will go to foreign schools to obtain a degree. In some countries it is much cheaper to pick up a degree from a well recognized university even if you have to pay for a room and meals etc. The United States has gain a reputation for very high educational costs, while other countries have somehow managed to keep their costs low by comparison. You can still obtain student loans while unemployed and obtain a valid well recognized degree without taking on a huge debt.
Start planning for college and university early while you are still in high school to help manage your student loans. Here are a couple more ways to help you make it into the school you have chosen and obtain a good education with a degree.
Focus on High Marks or Sports or Both
Many students excel in school with high marks which may get them some sort of scholarship. Others will excel in sports and also get them a scholarship. Ultimately it is about taking ownership of your future and your debts and doing as much as you can to minimize the debt that you will have when you graduate. Getting the marks not only will help you save money by not going as far into debt through the scholarship, it will also help you get a better job that pays well and will help you pay off your debt more quickly.
Students who receive a sports scholarship must work extra hard. They must maintain their skills in whatever sport they have chosen, but they must also make sure that they obtain the degree they need as well. Only a few students are able to transform their university sports participation into a professional sports career. While they may have received scholarships to go to university for a sport, they will need their education to land a job when they graduate.
Student loans are a great way to help all students get the education they need to survive in today’s world. Students should also pay attention to the terms and conditions that are applied to their student loans. What interest rate will they pay when the graduate? What interest rate do they pay prior to graduation? What happens if they decide to opt out of school? Will the debt become immediately payable? Are there any hidden fees that they need to be aware of that kick in under specific conditions before or after graduation? What are the options if they remain unemployed for a period of time after graduation? There can be a lot of fine print to read, but believe us when we tell you it is important to read all of this and ask questions if you do not understand some of the points.
Some students will take some time off to travel once they finish school. They feel that this is the last time they will have a chance to travel, before joining the workforce, buying a home, going into debt and perhaps even getting married and raising a family. What happens to their student loans in these conditions? Do they still have to make payments after graduation or can they negotiate something with the lender to delay the payments until they return and enter the work force?
There are lots of questions about student loans and being unemployed. Ask these questions up front to avoid any surprises when you are speaking with loan officers about serving student needs. Even if some of the answers are not quite to your liking, taking on the student loan to enable attending college or university may still be the right answer. Life is a series of compromises and we all just have to figure out which ones we are prepared to make to ensure that we are successful and make the kind of money we hope. Student loans for the unemployed should be looked at as a stepping stone to better days!