Universities or colleges are either ran for profit or non-profit. A college who runs as a for-profit college is seeking to make money as a business entity, while a non-profit college is run without the intention of making money and is granted special tax privileges by the IRS. There are some major differences when discussing non-profit and for-profit colleges in America.
No matter which type of college a student chooses to attend, a student must weigh how much they can afford for their education, their desired career and connection to the school. You should feel a deep desire to be a part of the community at the college that you choose to attend. It should not matter if the college is for profit or non-profit, but that you choose the college that is right for you.
Many college students wonder why they should even consider investing in the market when they are still in college. College is expensive and paying for it can be very difficult for people, so even considering investing is a crazy thought for many students. If you’re fortunate enough to have scholarships, grants or parent help you may have extra money that you’re not putting towards your education.
There will essentially be no other time in your life when you’re not required to pay rent, pay for groceries and utilities. This extra money should be used to plan for your future, and by investing money you’re setting up a great fund for your future.
Investing requires a lot research, knowledge and discipline. Students would best served by going to a financial advisor. The advisor can help them decide how much to invest, the type of investment and advise them how to monitor the market and make choices regarding their investment.
Before meeting with an investor, it’s wise to brief yourself at least a bit about the investment journey. Here are a few steps about starting the journey:
These steps will help to prepare you to invest your extra money, and start making a profitable future before you even graduate. This is a sure fire to hit the street running, and start a journey to a successful life as a working and profitable adult. Before investing be sure to do research about all of your choices. While investing as a student can be quite profitable, it can also be quite intimidating. Knowing your options and knowing how to increase your profit will go a long way in your investment journey.
Many people start off applying for college and financial aid at the same time. However, they are unaware that the financial aid process should start years before they even select a college. Here is some helpful information regarding college costs and planning for it.
Determining the Total Cost
The US Department of Education estimates that the cost to attend a public college is between $15,100 and $32,900. Starting early to prepare covering college costs means you need to know how much you are looking to pay out of pocket in school and what you will look at paying once you are out of school. Loans are the amount of money that will need to be paid back and scholarships and grants generally do not need to be paid back. There are exceptions such as if a rule is broken, you may forfeit additional funds or may be required to pay them back.
The best way to get an accurate figure of how much your college costs will be is to get the information either directly from the school or from a reputable website. Their College ROI Rankings resource has so much information loaded about educational statistics. You can go to this site and search for schools and get the information you need to help you form an educated decision. Make sure you are looking for the total expenses. This includes tuition, fees, and living arrangements, both on and off campus.
Find All Financial Support
A good place to start calculating how much aid you need assistance with is the Federal Student Aid Department (FSA). They have many tools and calculators. You will initially complete your Federal Application For Student Aid (FAFSA) application, which in the end gives you the estimated amount you are eligible for in student loans and the Federal Pell grant. This is also your application to qualify you for many other grants and scholarships.
A key tool to use of the FSA is the FAFSA4caster, which provides you a college worksheet guiding you to understand you eligibility and how much you need to save. You can also use the College Navigator to get information about the average amount of student loans, Pell grant, other federal grants, and institutional scholarships that are awarded.
Once you have figured out your need, you need to determine how you are going to cover your balance. Keep in mind, most of these calculations are determined based on you taking the federal loans. If you are not interested in any loans, you do have some work cut out for you, unless you are working and can dedicate income payments for your tuition as you go.
The American student loan debt has risen in the past decade from $240 billion to $1.2 trillion with the average graduate exiting school having approximately $29,400 in student loan debt, with government and private student loans. Such a rapid increase has mimicked the housing market bubble and the steady increase has many wondering if the higher education bubble will soon pop as well.
Is History Repeating Itself?
With the high national average of student loan debt, that number is expected to rise by 6 percent each year. These loans students secure are similar to the mortgage loans that left many homeowners, without a home. Of the $1.2 trillion in student debt, about $1 trillion is comprised of Federal student loans. With interest rates climbing on both private and federal loans, students are expected to pay much more over the coming years.
The Bubble May Not Pop
However, students are still graduating in an economy, though improving, still has left many unemployed. Students and their families are realizing that because they seek out higher education opportunities does not mean they will secure a job where they can make affordable payments. Students are now either waiting until they can find affordable options to continue school or finding alternate methods. So, private lenders have changed their lending standards and loans are not as popular. So some would say, the bubble has stopped growing or already has burst.
There however is a way students can receive their education and avoid the higher education bubble all together. They can get a budget together while still in high school. This helps planning to be easier. They can apply for scholarships, grants, and negotiate with schools for reduced to no tuition rates. Also, they may inquire about work-study opportunities on campus while living at home to decrease the cost of living. If they must take a loan, they should pay the interest while in school so the bubble doesn’t grow.
With so much student debt, there are actually many ways students can pursue their education and avoid getting loans way over their head. The following methods include loans, scholarships, grants, and donations.
Peer-to-peer funding has been around for some time, but more so thought of for businessloans. This is an excellent alternate method to finance one’s education. They have low fixed rates varying from 6.73% to 9.36% APR. There are no hidden fees and it’s an easy application. Prosper and the Lending Club are two well-known Peer-to-peer funding lenders.
College Debt Solution also offers some Peer-to-Peer lenders they partner with. Borrower’s present their case and a lender or lenders pitch in what they can to create a win-win situation for a
Find a Benefactor.
There are many well-known programs, such as the National Health Services Corps, AmeriCorps, ROTC programs, and the Peace Corp that have programs set up to forgive student loan debts in exchange for their service commitment over a course of a few years. Other programs exist as well such as with nursing opportunities or for teachers teaching in inner city school systems.
Get a Non-Traditional Scholarship
Instead of applying for scholarships based on need, racial backgrounds, or academic achievements, you can apply for a non-traditional scholarship. Look into out of the ordinary requests such as unique designs for fashion school or a scholarship where you volunteer to help an exotic cause.
Check Out Alternate Social Media Sites Methods
You can turn to social media sites such as Edulender and Sponsor My Degree to see if you can have others sponsor your education. Set your profile up and request donations for school on your Twitter, Facebook, and LinkedIn sites.
With the cost of college rising every year, students are faced with the dilemma of choosing quality education and obtaining a lifetime of debt. Students are starting to question if a college degree is really worth the cost of paying for that degree over their entire adulthood.
Another important factor in the discussion about the affordability of education is that the unemployment is so high in today’s economy-that many college graduates cannot get a job. It’s much harder to pay back student loan debt, when one has no income to do so. Many college graduates are forced to work part time jobs, which barely cover living expenses, much less student loan payments.
But there is still much research that indicates that there is a definite gap between college and high school graduate earning levels. College graduates make about $17,000 more than those with only a high school degree. There are not as many high paying jobs available in today’s workforce, which do not require a college degree. High school graduates are left with service, retail and blue-collar jobs that usually do not pay as much as business, healthcare, law or education jobs of college graduates.
Most high school graduates will simply not have as many opportunities to make a high salary with the jobs that are available to them. Even working as an executive assistant or secretary can require a college degree in today’s economy. It’s clear that obtaining a college degree increases one chances of becoming a higher income earner and finding a career that will bring about future advancement and raises.
Young adults also have the option of attending trade schools or earning a two year degree. These options may be cheaper for students who have chosen career field or whom cannot afford a four year degree. Students will have significantly less debt, but often can make a higher income than high school graduates with no further education.