Horror stories about out-of-control college debt are familiar to most of us, but there is a flip side to consider. Shying away from student loans can prove short-sighted, especially if it costs you the ability to focus on studies, network with classmates and pursue career enrichment opportunities. The trick is enlisting the right loans for the right reasons – with a carefully considered plan in place. Learn why our student loan advisor, Sim Terwilliger, has some regrets looking back on how she managed the financing of her long-dreamed-of Ivy League college experience. She and Lauryn Williams, our senior student loan advisor, highlight common misconceptions about debt and how to avoid pitfalls both real and imagined. As Sim sums up: "Yes. Be cautious. Be intentional. But don't be fearful. Let knowledge give you clarity and direction."
In today's episode, you'll find out:
- Undergrad price tags are steep and debt is intimidating, but there are options
- Colleges offer all kinds of packages, including work-study programs
- Fear of debt is natural and not a bad thing – but it's important to get educated about it
- Unpaid internships can be out of reach and impractical for lower-income students
- The open mouth gets fed: Never shy away from asking for help
- Only 45% of undergrads at Sim's Ivy League college qualified for need-based grants
- A Factor to Consider: Being the scholarship kid can feel awkward, even demoralizing
- If your living circumstance/home life is stressful or unhealthy, loans can be a worthwhile catalyst to change that pays off in the long-term
- Just $5,000-$7,500 in loans can provide enough flexibility and breathing room to make a real impact on the quality of an overall educational experience
- Parent-Plus loans are another option for students whose family financial picture doesn't fit the standard financial aid calculus
- If your estimated family contribution is unrealistic, ask your financial aid office for a reevaluation of specific facts and circumstances
- FAFSA is the baseline federal student aid application and CSS Profile is for private college consideration
- Liquidating assets to finance college expenses can be ill-advised for parents approaching retirement age
- Top 5 reasons that Sim wishes she would have opted for student debt
- Why federal loans are preferable to private loan options
Links to topics mentioned:
About Parent-Plus Federal Student Loan opportunities An overview of the federal FAFSA application An overview of the private CSS Profile
Like the show? There are several ways you can help!
Feeling helpless when it comes to your student loans?
