12.7: Paying for College

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Laura Haygood and RaeAnna Jeffers

Learning Objectives

At the end of this section, the learner will:

Describe a myriad of ways to pay for attending college
Identify a variety of definitions related to financial aid

Paying for college

As you progress through your college experience, the cost of college can add up rapidly. Worse, your anxiety about the cost of college may rise faster as you hear about the rising costs of college and horror stories regarding the “student loan crisis.” It is important to remember that you are in control of your choices and the cost of your college experience, and you do not have to be a sad statistic.

Education Choices

Education is vital to living. Education starts at the beginning of our life, and as we grow, we learn language, sharing, and to look both ways before crossing the street. We also generally pursue a secular or public education that often ends at high school graduation. After that, we have many choices, including getting a job and stopping our education, working at a trade or business started by our parents and bypassing additional schooling, earning a certificate from a community college or four-year college or university, earning a two-year or associate degree from one of the same schools, and completing a bachelor’s or advanced degree at a college or university. We can choose to attend a public or private school. We can live at home or on a campus.

Each of these choices impacts our debt, happiness, and earning power. The average income goes up with an increase in education, but that is not an absolute rule. The New York Federal Reserve Bank reported in 2017 that approximately 34 percent of college graduates worked in a job that did not require a college degree,¹⁴ and in 2013, CNN Money reported on a study from Georgetown University’s Center on Education and the Workforce showing that nearly 30 percent of Americans with two-year degrees are now earning more than graduates with bachelor’s degrees.¹⁵ Of course, many well-paying occupations do require a bachelor’s or master’s degree. You have started on a path that may be perfect for you, but you may also choose to make adjustments.

College success from a financial perspective means that you must:

Know the total cost of the education
Consider job market trends
Work hard at school during the education
Pursue ways to reduce costs

Most importantly: Buy only the amount of education that returns more than you invest.

According to US News & World Report, the average cost of college (including university) tuition and fees varies widely. In-state colleges average $9,716 while out-of-state students pay $21,629 for the same state college. Private colleges average $35,676. The local community college averages approximately $3,726. On-campus housing and meals, if available, can add approximately $10,000 per year.¹⁶ See the table below, and create your own chart after you research.

Table 12.5
Sample College Costs
Type of School	Annual Tuition without Housing	Tuition If Living on Campus	Total Cost at Planned Completion
Community College (2 yr.)	$3,726	Live at Home	$7,452
Public University, In State (4 yr.)	$9,716	Live at Home	$38,864
Public University, In State (4 yr.)		$19,716	$78,864
Public University, Out of State (4 yr.)	$21,629	$31,629	$126,516
Private College (4 yr.)	$35,676	$45,676	$182,704

You may need to adjust your college plan as circumstances change for you and in the job market. You can modify plans based on funding opportunities available to you (see next sections) and your location. You may prefer a community-college-only education, or you may complete two years at a community college and then transfer to a university to complete a bachelor’s degree. Living at home for the first two years or all of your college education will save a lot of money if your circumstances allow. Be creative!

Key to Success: Matching Student Debt to Postgraduation Income

Students and parents often ask, “How much debt should I have?” The problem is that the correct answer depends on your personal situation. A big-firm attorney in a major city might make $120,000 in their first year as a lawyer. Having $100,00 or even $200,000 in student debt in this situation may be reasonable. But a high school teacher making $40,000 in their first year would never be able to pay off the debt.

The amount of debt you take on should be tied to the income you expect.

Figure 12.11: Each field of employment brings with it an average income and assumed debt. This graph shows the impact of an attorney’s income versus debt, and then compares a teacher who took a $100,000 loan with one who took a $30,000 loan. Note the teacher’s income is the same in both cases. (Credit: Based on information from National Association of Colleges and Employers and US Bureau of Labor Statistics.)

Research Your Starting Salary

Begin by researching your expected starting salary when you graduate. Most students expect to make significantly more than they will actually make.¹⁷ As a result, your salary expectations are likely much higher than reality. Ask professors at your college what is typical for a recent graduate in your field, or do informational interviews with human resource managers at local companies. Explore the US Bureau of Labor Statistics’ Occupational Outlook Handbook(opens in new window). PayScale(opens in new window) also has a handy tool for getting general information based on your personal experience and location. Search websites and talk to employees of companies that interest you for future employment to identify real starting salaries.

Undergraduate Degree: 1 x Annual Salary

For students working toward a bachelor’s or associate degree, both forms of undergraduate degrees, you should try to keep your student loans equal to or less than your expected first year’s salary. So if, based on research, you expect to make $40,000 in your first year out of college, then $33,000 in student loans would be a reasonable amount for you to pay out of a monthly budget with some sacrifice.

Advanced Degrees: 1–2 x Annual Salary

Once you’ve graduated with your bachelor’s degree, you may want to get an advanced degree such as a master’s degree, a law degree, a medical degree, or a doctorate. While these degrees can greatly increase your income, you still need to match your student debt to your expected income. Advanced degrees can often double your expected annual salary, meaning your total debt for all your degrees should be equal to or less than twice your expected first job income. A lower number for the debt portion of your education would be more manageable.

Your goal should be to pay for college using multiple methods so your student loan debt can be as small as possible, rather than just making low monthly payments on a large loan that will lead to a higher overall cost.

Scholarships

Thinking about applying for scholarships can seem like an overwhelming prospect, and students have many excuses for not applying. There are so many scholarships available for college that knowing where to start is the first obstacle to the process. Remember, scholarships are the gift of money for college. A gift does not have to be paid back like a loan does.

Scholarships are offered to students who meet a specific requirement established by the sponsor, who may be an individual or an organization. Scholarships can be offered through local, state, or national sponsors. Each scholarship will have its own requirements based on the purpose of the scholarship. Scholarships are a good way to help pay for college without increasing student debt. Students may apply for multiple scholarships. Receiving a scholarship will affect the student’s overall financial aid award because all the student aid added together cannot be more than the cost of attending college. However, it is important to realize that scholarships are gifts and do not have to be repaid, so trying to include a scholarship in your overall financial aid package is a good idea.

Common Excuses For Not Applying For Scholarships

Scholarships are only for people with good grades or athletic skills.
There aren’t scholarships for someone like me.
You have to be a good essay writer to win a scholarship.
There is too much competition to even try.
Finding scholarships to apply for is hard and takes too much time.
Scholarship awards are for small amounts of money, so it’s not worth it.
Scholarships are only for recent high school graduates.
GED graduates can’t get scholarships.

Finding scholarships requires research and effort on the part of the student, but the effort can have a financially rewarding outcome. Searching for scholarships today is much easier than in the past. Students used to have to comb through books in counselors’ offices and photocopy applications to be put in the mail, snail mail!

The Internet has changed the search process. In today’s scholarship search process, a student can use several websites to help find the treasure. Never pay for help to search for scholarships. Websites that charge fees to find scholarships may be scams. The Scholarship Fraud Prevention Act of 2000 was passed to help increase the penalties for people convicted of scholarship fraud. Before this Act was passed, the Federal Trade Commission was limited to closing operations defrauding consumers. Now the government has the power to incarcerate or fine perpetrators of scholarship fraud.

Free help can be found through the college you have selected to attend as well as through several great websites. Check with student support services at your college to see what services are offered. Scholarship Junkies, Unigo, Fastweb, and Fin Aid are examples of online resources for finding scholarships to apply for. Unigo even has a section for scholarships that don’t require an essay.

Lists of Nursing Scholarships

Mistakes to avoid when applying for college scholarships

Scholarship committees want to give their money away to deserving students. It’s your job to properly sell yourself so they know why you are the right choice. Build a profile that can’t be ignored, one that showcases your originality, your character, and your drive to be successful. Avoid these common mistakes students make. Get your application done right!

Deadlines – don’t miss them! Note the date, time, and time zone of the deadline.
Fill out the application carefully – don’t be careless!
Fill out the application completely – incomplete applications are often rejected.
Double-check eligibility – if you aren’t eligible, move on to another scholarship.
Proofread – both your application as well as the essay or personal statement.

Your attention to detail during the scholarship application process can save you time and money later.

Financial Aid

Financial Aid Basics

Most students will need some form of financial aid to help pay for college. Before accepting an offer of assistance, it is important for a student to understand what each possible offer means and what the student’s responsibility will be after accepting the offer. The Office of the US Department of Education offers financial assistance to students in the form of grants, loans, and work-study programs. Filling out the FAFSA application is the first start towards receiving financial aid for college.

Understanding interest rates and how they impact student loans is essential. Many students shy away from doing the math to understand what their responsibility will be in repaying a loan. It is also essential that students understand the difference between a subsidized and unsubsidized loan. Both types of loans may be offered to a student in an award letter for financial aid. Many of the horror stories about the burden of college debt on students when they graduate from college could be avoided if students better understood options for financing their college education and examined their college selection process in greater detail.

There is a difference between a flat/annual interest rate and a compound interest rate. Compound interest can make you very happy as an investor, but it works against you as a borrower. Subsidized loans do not add interest while a student is attending college. The interest is not compounded while the student is attending college. Unsubsidized loans begin charging interest as soon as you take out the loan as a car loan would.

The key difference between unsubsidized and subsidized loans is the amount of debt a student will leave college owing. Unsubsidized loans charge students interest while they are attending college, so the interest is growing on the loan during that time. A student might think they are borrowing $4,000.00 or $6,000.00, but unsubsidized loans add interest to the amount borrowed that adds up over time. Subsidized loans do not add interest while the student is attending college, so $4000.00 really is $4,000.00, no extras added.

Another important thing to remember when borrowing money for college is that if you add the cost of books and supplies or other needs onto the loan you have taken on for tuition, and you have unsubsidized loans, that extra money also grows over time with interest.

Loan Calculator

Students need to remember that they are consumers when it comes to taking on loans for college. Not thinking about what the debt means after college only compounds the issues. It is important to think about how much could you afford to pay monthly on a student loan once you have completed college. It’s easy to do the math on loan costs. The Smart Student’s Guide to Financial Aid has a free loan calculator that will do the work for you. All you have to do is plug in the numbers. The loan calculator will also give you an estimate of what your annual salary will need to be able to repay the loan. Of course, the loan calculator will not know your other financial commitments, so be sure to look at the monthly payment and decide if you can afford that additional expense. College debt is considered a partial economic hardship if it requires you to use more than 15% of your discretionary income.

Repayment

It is also important to realize that even if you don’t finish college, you will have to repay a loan taken out for college. According to an article titled The Feds Don’t Care If You Dropped Out of College. They Want Their Money, students who dropped out of college and ultimately didn’t obtain a degree or certificate, generally don’t earn higher wages after leaving school. Statistics show that students who start college but don’t finish struggle with student debt.

The US government backs loans that are taken out through FAFSA/Federal Student Aid. Repayment is expected. The government has the authority to garnish wages and withhold tax returns as part of the repayment of loans that are not paid. Government-backed debt cannot be forgiven in bankruptcy, except under rare circumstances.

The cost of going to college seems to be constantly increasing. Understanding the opportunity cost both now and in the future needs to be an important part of a student’s decision process when selecting a college and a major. Do the math! There are plenty of resources to help you. Follow your dreams, but be informed.

Financial aid vocabulary is a specialized language that students participating in the process must understand.

Common Financial Aid Vocabulary Definitions

Nursing School Success
*Terminology*	*Definition*
Award package	The way colleges and universities deliver their news about student eligibility for financial aid or grants. The most common packages include Pell Grants, Stafford Loans, and Work-Study.
Borrower	A person or group that obtains funds from a lender for a particular period of time. A borrower signs a “promissory note” as evidence of indebtedness.
Campus-Based Financial Aid Programs	The three major aid programs are funded by the federal government, but the disposition of the funds is handled by colleges’ financial aid offices. The aid programs are the Federal Supplemental Educational Opportunity Grant, the Federal Perkins Loan, and Federal Work-Study (FWS).
Cost of education	This includes tuition and fees, room and board, books and supplies, transportation, and miscellaneous expenses. A student’s financial aid eligibility is the difference between the cost of education and the Expected Family Contribution as computed by the federal government using the FAFSA.
Default	A failure to meet a financial obligation, especially a failure to make a payment on a loan. Defaults are recorded on permanent credit records and may result in prosecution and/or loss of future borrowing possibilities.
Dependent Student	A student claimed as a dependent member of the household for federal income tax purposes.
Expected Family Contribution (EFC)	The amount of financial support a family is expected to contribute toward a child’s college education. This amount is part of the formula used by the federal government to determine financial aid eligibility using the FAFSA form.
Federal Direct Loan	A group of federal loan programs for which the lender is the federal government. Included in these programs are government-subsidized loans for students and unsubsidized loans for both students and parents.
Federal Pell Grant Program	This is a federally sponsored and administered program that provides grants based on needs to undergraduate students. Congress annually sets the appropriation; amounts range from approximately $400 to $3,000 annually. This is “free” money because it does not need to be repaid.
Federal PLUS Loan	A nonsubsidized loan program for parents of undergraduate students under the Federal Education Loan Program umbrella
Federal Perkins Loan Program	A federally run program based on need and administered by a college’s financial aid office. This program offers low-interest loans for undergraduate study. Repayment does not begin until a student graduates.
Federal Stafford Loan	A federal program based on need allows a student to borrow money for educational expenses directly from banks and other lending institutions (sometimes from the colleges themselves). These loans may be either subsidized or unsubsidized. Repayment begins six months after a student’s course load drops to less than halftime. Currently, the interest rate is 0 percent while in school and then is variable up to 8.25 percent. The loan is typically repaid within ten years. Be sure to know the interest rate at the time of borrowing.
Federal Work-Study Program (FSW)	A federally financed program that arranges for students to combine employment and college study; the employment may be an integral part of the academic program (as in cooperative education or internships) or simply a means of paying for college.
Financial Aid Award Letter	Written notification to an applicant from a college that details how much and which types of financial aid are being offered if the applicant enrolls.
Financial Aid Package	The total amount of financial aid a student receives for a year of study.
Free Application for Federal Student Aid (FAFSA)	This is the federal government’s instrument for calculating need-based aid. It is available from high school guidance departments, college financial aid offices, and the Internet (www.fafsa.ed.gov). The form should be completed and mailed as soon after January 2 as possible.
Gap	The difference between the amount of a financial aid package and the cost of attending a college or university. The student and his/her family are expected to fill the gap.
Gift Aid	Grant and scholarship money are given as financial aid that does not have to be repaid.
Grants/scholarships	These are financial awards that are usually dispensed by the financial aid offices of colleges and universities. The awards may be need- or merit-based. Most are need-based. Merit-based awards may be awarded on the basis of excellence in academics, leadership, volunteerism, athletic ability, or special talent.
Lender	One who provides money on the condition that the money is returned, usually with an interest charge.
Merit awards, merit-based scholarships	More “free” money, these awards are based on excellence in academics, leadership, volunteerism, athletic ability, and other areas determined by the granting organization, which can be a college or university, an organization, or an individual. They are not based on financial needs.
PIN	Personal identification number.
Student Aid Report (SAR)	Report of the government’s review of a student’s FAFSA. The SAR is sent to the student and released electronically to the schools that the student listed. The SAR does not supply a real money figure for aid but indicates whether the student is eligible.
Subsidized Student Loan	The government is paying the interest on the loan while the student is in college at least part-time (six credits).
Tuition	Amount of money charged to students for instructional services. Tuition may be charged per term, per course, or per credit.
Unsubsidized Student Loan	The interest is accruing while the student is in college. The government is not paying the interest on the loan.

Activity: Voices of debt: the student loan crisis

Voices of Debt: The Student Loan Crisis

Watch the following video, and write a one-minute paper with your reflections and thoughts related to student debt.

Video: Voices of Debt: The Student Loan Crisis – Don’t Major in Debt

One or more interactive elements has been excluded from this version of the text. You can view them online here: Nursing School Success [uta.pressbooks.pub]

“An investment in knowledge always pays the best interest.”

—Benjamin Franklin, The Way to Wealth: Ben Franklin on Money and Success

Figure 12.12: Employers in certain fields, such as healthcare, may offer their own grants and scholarships. (Credit: Ano Lobb / Flickr / Attribution 2.0 Generic (CC-BY 2.0))

Additional Federal Support

The federal government offers a handful of additional options for college students to find financial support.

Education Tax Credits

The IRS gives out free money to students and their parents through two tax credits, although you will have to choose between them. The American opportunity tax credit (AOTC) will refund up to $2,500 of qualifying education expenses per eligible student, while the lifetime learning credit (LLC) refunds up to $2,000 per year regardless of the number of qualifying students.

While the AOTC may be a better tax credit to choose for some, it can only be claimed for four years for each student, and it has other limitations. The LLC has fewer limitations, and there is no limit on the number of years you can claim it. Lifetime learners and nontraditional students may consider the LLC a better choice. Calculate the benefits for your situation.

The IRS warns taxpayers to be careful when claiming the credits. There are potential penalties for incorrectly claiming the credits, and you or your family should consult a tax professional or financial adviser when claiming these credits.

Federal Work-Study Program

The Federal Work-Study Program provides part-time jobs through colleges and universities to students who are enrolled in the school. The program offers students the opportunity to work in their field, for their school, or for a nonprofit or civic organization to help pay for the cost of college. If your school participates in the program, it will be offered through your school’s financial aid office.

Student Loans

Federal student loans are offered through the US Department of Education and are designed to give easy and inexpensive access to loans for school. You don’t have to make payments on the loans while you are in school, and the interest on the loans is tax deductible for most people. Direct Loans, also called Federal Stafford Loans, have a competitive fixed interest rate and don’t require a credit check or cosigner.

Direct Subsidized Loans

Direct Subsidized Loans are federal student loans on which the government pays the interest while you are in school. Direct Subsidized Loans are made based on financial need as calculated from the information you provide in your application. Qualifying students can get up to $3,500 in subsidized loans in their first year, $4,500 in their second year, and $5,500 in later years of their college education.

Direct Unsubsidized Loans

Direct Unsubsidized Loans are federal loans on which you are charged interest while you are in school. If you don’t make interest payments while in school, the interest will be added to the loan amount each year and will result in a larger student loan balance when you graduate. The amount you can borrow each year depends on numerous factors, with a maximum of $12,500 annually for undergraduates and $20,500 annually for professional or graduate students.

There are also aggregate loan limits that apply to put a maximum cap on the total amount you can borrow for student loans.

Direct PLUS Loans

Direct PLUS Loans are additional loans a parent, grandparent, or graduate student can take out to help pay for additional costs of college. PLUS loans require a credit check and have higher interest rates, but the interest is still tax deductible. The maximum PLUS loan you can receive is the remaining cost of attending the school.

Parents and other family members should be careful when taking out PLUS loans on behalf of a child. Whoever is on the loan is responsible for the loan forever, and the loan generally cannot be forgiven in bankruptcy. The government can also take Social Security benefits should the loan not be repaid.

Private Loans

Private loans are also available for students who need them from banks, credit unions, private investors, and even predatory lenders. But with all the other resources for paying for college, a private loan is generally unnecessary and unwise. Private loans will require a credit check and potentially a cosigner, they will likely have higher interest rates, and the interest is not tax deductible. As a general rule, you should be wary of private student loans or avoid them altogether.

Repayment Strategies

Payments on student loans will begin shortly after you graduate. While many websites, financial “gurus,” and talking heads in the media will encourage you to pay off your student loans as quickly as possible, you should give careful consideration to your repayment options and how they may impact your financial plans. Quickly paying off your student loans or refinancing your student loans into a private loan may be the worst option available to you.

Payment Plans

The federal government has eight separate loan repayment programs, each with their own way of calculating the payment you owe. Five of the programs tie loan payments to your income, which can make it easier to afford your student loans when you are just starting off in your career. The programs are described briefly below, but you should seek the help of a licensed fiduciary financial adviser familiar with student loans when making decisions related to student loan payment plans.

The standard repayment plan sets a consistent monthly payment to pay off your loan within 10 years (or up to 30 years for consolidated loans). You can also choose a graduated repayment plan, which will begin with lower payments and then increase the payment every two years. The graduated plan is also designed to pay off your student loans in 10 years (or up to 30 years for consolidated loans). A third option is the extended repayment plan, which provides a fixed or graduated payment for up to 25 years. However, none of these programs are ideal for individuals planning to seek loan forgiveness options, which are discussed below.

Beyond the “normal” repayment options, the government offers five income-based repayment options: (1) the Pay As You Earn (PAYE) repayment plan, (2) the Revised Pay As You Earn (REPAYE) repayment plan, (3) the Income-Based Repayment (IBR) plan, (4) the Income-Contingent Repayment (ICR) plan, and (5) the Income-Sensitive Repayment (ISR) plan. Each program has its method of calculating payments, along with specific requirements for eligibility and rules for staying eligible in the program. Many income-based repayment plans are also eligible for loan forgiveness after a set period of time, assuming you follow all the rules and remain eligible.

Loan Forgiveness Programs

Many income-based repayment options also have a loan forgiveness feature built into the repayment plan. If you make 100 percent of your payments on time and follow all the other plan rules, any remaining loan balance at the end of the plan repayment term (typically 20 to 30 years) will be forgiven. This means you will not have to pay the remainder on your student loans.

This loan forgiveness, however, comes with a catch: taxes. Any forgiven balance will be counted and taxed as income during that year. So if you have a $100,000 loan forgiven, you could be looking at an additional $20,000 tax bill that year (assuming you were in the 20 percent marginal tax rate).

Another option is the Public Service Loan Forgiveness (PSLF) program for students who go on to work for a nonprofit or government organization. If eligible, you can have your loans forgiven after working for 10 years in a qualifying public service job and making 120 on-time payments on your loans. A major advantage of PSLF is that the loan forgiveness may not be taxed as income in the year the loan is forgiven.

Consider Professional Advice

The complexity of the payment and forgiveness programs makes it difficult for nonexperts to choose the best strategy to minimize costs. Additionally, the strict rules and potential tax implications create a minefield of potential financial problems. In 2017, the first year graduates were eligible for the PSLF program, 99 percent of applicants were denied due to misunderstanding the programs or having broken one of the many requirements for eligibility.²⁰

Your Rights as a Loan Recipient

As a recipient of a federal student loan, you have the same rights and protections as you would for any other loan. This includes the right to know the terms and conditions for any loan before signing the paperwork. You also have the right to know information on your credit report and to dispute any loan or information on your credit file.

If you end up in collections, you also have several rights, even though you have missed loan payments. Debt collectors can only call you between 8 a.m. and 9 p.m. They also cannot harass you, threaten you, or call you at work once you’ve told them to stop. The United States doesn’t have debtors’ prisons, so anyone threatening you with arrest or jail time is automatically breaking the law.

Federal student loans also come with many other rights, including the right to put your loan in deferment or forbearance (pushing pause on making payments) under qualifying circumstances. Deferment or forbearance can be granted if you lose your job, go back to school, or have an economic hardship. If you have a life event that makes it difficult to make your payments, immediately contact the student loan servicing company on your loan statements to see if you can pause your student loan payments.

The Consumer Financial Protection Bureau (CFPB) has created a series of sample letters(opens in new window) you can use to respond to a debt collector. You can also file a complaint(opens in new window) with the CFPB if you believe your rights have been violated.

Applying for Financial Aid, FAFSA, and Everything Else

Take this first step—you will need to do it. The federal government offers a standard form called the Free Application for Federal Student Aid (FAFSA), which qualifies you for federal financial aid and also opens the door for nearly all other financial aid. Most grants and scholarships require you to fill out the FAFSA, and they base their decisions on the information in the application.

The FAFSA only requests financial aid for the specific year you file your application. This means you will need to file a FAFSA for each year you are in college. Since your financial needs will change over time, you may qualify for financial aid even if you did not qualify before.

You can apply for the FAFSA through your college’s financial aid office or at studentaid.gov if you don’t have access to a financial aid office. Once you file a FAFSA, any college can gain access to the information (with your approval), so you can shop around for financial aid offers from colleges.

Maintaining Financial Aid

To maintain your financial aid throughout your college, you need to make sure you meet the eligibility requirements for each year you are in school, not just the year of your initial application. The basic requirements include being a US citizen or eligible noncitizen, having a valid Social Security number, and registering for selective service if required. Undocumented residents may receive financial aid as well and should check with their school’s financial aid office.

You also must make satisfactory academic progress, including meeting a minimum grade-point average, taking and completing a minimum number of classes, and making progress toward graduation or a certificate. Your school will have a policy for satisfactory academic progress, which you can get from the financial aid office.

What to Do with Extra Financial Aid Money

One expensive mistake that students make with financial aid money is spending the money on noneducation expenses. Students often use financial aid, including student loans, to purchase clothing, take vacations, or dine out at restaurants. Nearly 3 percent spend student loan money on alcohol and drugs.²¹ While this seems like fun now, these noneducation expenses are major contributors to student loan debt, which will make it harder for you to afford a home, take vacations, or save for your retirement after you graduate.

When you have extra student loan money, consider saving it for future education expenses. Just like you will need an emergency fund all your adult life, you will want an emergency fund for college when expensive books or travel abroad programs present unexpected costs. If you make it through your college years with extra money in your savings, you can use the money to help pay down debt.

ANALYSIS QUESTION

A closer look: How much student loan debt do you currently have, and how much do you think you’ll have by the end of college? How could this debt impact your future?

Footnotes

forbes.com [www.forbes.com]
communitycollegereview.com [www.communitycollegereview.c...r-year-schools]
usnews.com [usnews.com]
Hess, Abigail. “College Grades expect to earn $60,000.” 2019. CNBC. cnbc.com [www.cnbc.com]
usatoday.com [www.usatoday.com]
studentaid.ed.gov [studentaid.ed.gov]
forbes.com [www.forbes.com]
studentloanhero.com [studentloanhero.com]

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