It’s no secret, earning your college degree comes at a high cost.
“You can probably judge by my appearance that I’m not completely content, but it’s worth it in the end,” says college student Jacob Taber.
Some college graduates are not able to pay back the loans they are forced to take out.
“The national average default rate of students that are in repayment and not paying back their student loans is like 12 percent,” says Shane Davidson, Vice President of Enrollment and Marketing at the University of Evansville.
Having a college degree doesn’t guarantee financial security, and with an increasingly competitive workforce, some say a Bachelor’s Degree is not enough. “I’d like to go ahead and get a Master’s Degree, so I’m able to recoup those losses,” says Taber.
Student advisors say it’s best to keep loans to a minimum. “It’s really simple, ABC, always borrows conservatively and in that borrow for your educational expenses,” says Davidson. Which means using the money to pay for things like housing, meal plans, books, and tuition while saving for unforeseen expenses.
“During the summer, if you don’t have any backup plans, it’s really important to work as much as you can,” says Taber.
“I think where students get in trouble is that they’re borrowing for their cell phone bill and they’re borrowing for their car payment and those type of things,” says Davidson.
After you graduate, paying off your student loan with the highest interest rate first and budgeting is vital.
“You’ve got to examine what the inputs and the outputs are and then if you’re upside down. If your expenses are greater than your revenue, Where are you going to cut? You know maybe you change your cell phone plan maybe you change your cable plan maybe you change your internet plan,” says Davidson.