Case Studies: Learning How To Manage or Completely Avoid Student and Personal Loans – Part 2
On our last post, we started discussing about a very interesting topic: How kids and families face the sudden, large amounts of expenses that are caused by attending college.
In most cases, mainly due to financial reasons, most families are forced to apply for and acquire a personal loan or a student loan. In most cases though, this means leaving children with large amounts of debt even before the enter college, a debt that oftentimes that are not prepared to face.
To help parents and anyone else in this situation, we started by studying the case of a family that did quite well in this scenario. You can read about it here.
This time, we take a look at the second (and last) case study that can help anyone manage better their student and personal loans when they are acquired for paying college.
Case Study No. 2
In the case if Karin, a college student whose family managed to send here there without acquiring a personal loan or student loan, the secret seems to be frugality and thoughtful consideration of every expense.
Another important factor that have seemed to help considerably, is Karin’s parents resolution on using cash to pay for her education, thus placing considerable value in savings, regardless of how little they could be at times.
In this particular case, Karin’s parents were both quite knowledgeable about personal loans and student loans, which definitely helped. Even so, there are still ways in which Karin, as a college student, could help her parents face the costs of college so they didn’t had to acquire a personal loan.
– 1. Choosing a Reasonably Affordable College: This could be anything from choosing a school that offers the lowest ticket price to the one that provides the largest scholarship fund pool. In any case, all a future college student has to do is perform some in-depth research on the possible schools to attend and find the one that better accommodates their needs and financial limits.
Karin’s mother and her took care of finding the best way to achieve a balance between a school with a great academic level and for the particular courses that Karin wanted to undertake and that also offered a good financial value. After a lot of research, she and her family found a school that was affordable, but that also offered a great journalism program, just the career path that Karin wanted. Thanks to this, her family avoided acquiring a personal loan completely, saving literally tens of thousands of dollars in the process.
– 2. Take Care of as Many Small Expenses as Possible: While all major expenses might be a bit too high for any college student to face alone, it is definitely possible for them to face other, less considerable costs, like books, class supplies and other, smaller fees. Part time jobs are great for these expenses, since they provide a steady source of income while at the same time teaching student about the value of hard-earned money. All while enjoying the benefits of exiting college being completely debt-free and personal loan-free.
And that is it for this series. We hope the case studies presented have given you ideas on how to be in control of your college expenses and perhaps, with some planning and luck, to completely avoid personal loans to face them.