Is Student Loan Debt Really A Problem For Students Of Community Colleges?
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Is Student Loan Debt Really A Problem For Students Of Community Colleges?

Saturday August 18, 2012

Is Student Loan Debt Really A Problem For Students Of Community Colleges?
If you’re an expense-conscious student, your local community college can help you to keep your expenses down and avoid the crush of debt from school loans. In fact, many financial advisers recommend that, if you like to curtail your education cost and minimize the need of college loan, you must complete your first two years at a community college before transferring to a four-year university to receive your degree. As Community colleges have annual tuition rates well below those of four-year colleges and universities, the two-year route may seem like a natural choice in terms of cost management and college loan debt relief.
However, according to the most recent data from the U.S. Department of Education, 10.1 percent of community college students, who are carrying federal education loans end up defaulting on their loans within the first two years of repayment — more than twice as much as the 4.4 percent of borrowing students at public four-year universities. This statistics indicates the potential for trouble among community college borrowers is even higher. In fact, according to a new report released by the Institute for Higher Education Policy, a whopping 60 percent of community college students will either default or become delinquent (without defaulting) on their college loans. Nevertheless, for many students, attending community college is still a useful way to reduce the total amount spent on a college education. Read on to know some tried and tested tactics to avoid student loan debt while studying in community colleges.

  • As most community college students are commuter students and live at homes, it helps them to cut back on room-and-board costs. However, keep in mind managing or reducing your living expenses during college days needs a lot of sacrifice. You may have to continue living at home with your parents, brown-bagging your lunch instead of eating on campus and working part- or full-time, while you go to school.
  • Seeking out scholarships and grants can help you to cut your college costs consider ably. Student scholarships and grants provide you with financial aid that, unlike a college loan, doesn’t need to be paid back.
  • In case, you’re a working student, check with the human resource department of your office to know whether they offer tuition reimbursement programs or professional development benefits that can help you settle up the cost of higher education.
  • As a student of community college you must know that you can pay off your student loan without a single default, if you complete the graduation on right time. If you are late and take longer to complete your degree, chances are you might not be able to find a job after college or might get a low- paid job and eventually might face problem on paying back the owed amount.
  • Be certain you borrow only the thing you need. As the federal education loan program offers the same maximum amount, regardless of the type of school you attend, students often tend to over borrow. Being lured by the extra money, many students often indulge in unscrupulous spending and end up incurring huge debts.

If you are planning to get admitted in a community college, remember you must prepare a plan to deal with your expenses without maxing out your student loans. Make sure you borrow the amount which is indispensable to complete your college degree and keep your student loan debts under control.

About the Author: The article has been contributed by Allen Smith. He is associated with Oak View Law Group (www.ovlg.com). Allen likes to write on various financial topics such as Loan, Debt, Mortgage, Bankruptcy etc.


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