Tuesday, April 24, 2012

Federal student loans doubling interest dilemma

If the US Congress won't take any action, the federal student loans rate will double for 2012-2013 school year from 3.4% to 6.8%.  According to CNN article:
What's at stake: More than 7 million undergraduates have subsidized student loans, which means the federal government absorbs some of the interest rate for lower- and middle-income families based on financial need.
If Congress does nothing, the cost to students borrowing the maximum $23,000 in subsidized loans is an extra $5,000 over a 10-year repayment period. The cost to the federal government to extend the lower interest rate is $5.8 billion, according to an analysis by the nonpartisan Congressional Budget Office.
Putting all that election year politics debris aside.  With the cost of college tuition rising, what can an average student do to avoid higher student loan interest rates or eliminate at least some of the loans?
  1. Enroll in a local junior college aka community college - tuition is cheap, schedules offer morning and evening classes so you can work part-time, credits are transferable, some offer BA programs from affiliated universities, you can live at home and still enjoy mom's cooking, you can change majors and finally decide who you want to be when you grow up without pissing away thousands of dollars, you can party your bottom off after you transfer to your dream college 
  2. Enroll in state programs that offer tuition reimbursement - most of the states have programs that would pay for all or some of your tuition if you agree to work in the state for couple of years.  Nursing is one of the biggest around.  Become a wet nurse at no cost to you!
  3. Select in-state state school - you will cut your cost significantly, consolidate your loans early to secure lower rate, screw the esteemed pile of steaming sorority stories from your older buddies on the other end of the planet - you will impress the ladies with your saved cash later!
  4. Choose college close to home - you can still live in a basement, you keep all your gadgets, you can show your face at the parties,  you can borrow your parents car, you can munch off your siblings, did I mention mom's cooking?  And the big one: laundry anyone?
  5. Get a good trade - try getting some plumbing or electric work done nowadays - it will cost you 2-3 college credits!  If only that much.  Think before your spend all that money on college to work at Red Lobster after you graduate.  Good trade will make you a lot of cash and with your own business, you can do even better in no time.  Think - you build swimming pools - you meet the ladies.
  6. Just get a job - the dirty little secret of good-paying job for high school graduates is garbage collection truck driver.  It might not be the most pleasant one, but your trade your sense of smell for thousands of dollars saved on tuition.  Wake up - smell the aroma!  Of cash, that is.
  7. Ask your parents to pay for college - sure, it's not for everyone, but if your parents or grandparents are willing to pay for your transformation to a higher life satisfaction with a college degree - go for it! There is no shame to take money from family.  After all, you will be the one selecting that attractive Polish nurse for your loved ones.  Nothing but the best for the family.
  8. Finally, just get the lady - if you marry a well-off girl early, you are combining your feelings with the ability to accomplish your dreams at no cost.  Sounds good Levi Johnston, doesn't it?  Oh wait, not the greatest example.  So, what's your choice to save?


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