As a continuation of How to Help Your Child Reduce His Future Student Loan Debt (Part 1), here are some additional tips on how to cut college costs and reduce the amount of student loan debt you or your college bound child may have to deal with later in life.
- Give back unused loan dividends: If not all student loan money is used during a specific financial aid time frame, students should not look at this extra money as a “bonus” to spend however they want. Instead, they should return the unused funds to the lender. Giving this money back will ultimately reduce the principal of the student loan and, consequently, reduce the amount of money that students will be on the hook for paying back after graduation. This long-term outlook can be especially helpful for recent graduates who may start out a low-paying job and be concerned about not being able to afford monthly loan payments in addition to living expenses.
- Inform financial aid offices of changes to financial situations: Specifically, if one or both parents losses their job, communicating this change in a family’s financial situation can make the student eligible for additional college funding, potentially even through grants or scholarships that will not have to be paid back later in life.
- Set a reasonably budget: As with most large-scale purchases, setting a budget ahead of time for college tuition and for what can be reasonably borrowed (and paid back down the line) is essential to keeping the options for college realistic. By crunching the numbers before starting to look at schools, you can avoid having a disappointing talk with students after they already have their heart set on a school that could financially devastate the family (and the student later in life).
Preparing to pay for college can be essential to alleviating financial burdens later in life. However, if you were not able to plan for student loan debt, are facing seemingly insurmountable debt and are looking for a financial fresh start, contact the trusted Colorado debt relief and bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C. Our experienced legal professionals are committed to providing each of our Clients with the debt relief assistance they need, and we will work tirelessly to ensure that our Clients’ cases are resolved as favorably and efficiently as possible. For a thorough assessment of your situation, along with expert advice regarding the best manner in which to move forward to unburden yourself from debt, call us at (866) 916-3950.