Archive for College

The Downsides of Borrowing Student Loans

student loans

Are you still deciding on whether to take a student loan or not?  We all know how important it is to get a good quality education in today’s world.

But can everyone afford to go to a good college? People from middle-class families have to rely on a student loan to be able to make their dreams come true. Getting an education loan may seem easy for someone with good grades and decent credit history but there are downsides of borrowing student loans too.

Here are a few downsides of borrowing student loans.

1. You get buried into debt at a young age

A student loan may seem like a lifesaver during your college days but once you graduate, you have to live with the burden of debt on your young shoulder– for god knows how many years. The more you earn, the faster you will pay off your debt. So, a young person has to gamble on the fact that he or she, after graduation, will get a good job that also pays well.

2. Very few students get placed immediately after graduation

Ask yourself this question. How many fresh graduates you have met so far had a job in hand immediately after graduation? Even if you haven’t done such a survey, the number of students who get placed is very low. Most students take a year off to learn industry-specific skills and then get some attention from employers. In such a case, how are you going to begin paying off your debt? The longer the delay, the more interest you will have to pay.

3. You will have to putt-off other goals in life

According to a report from LendingTree, students graduated in the year 2018 had a total debt of  $29,800 at the time of graduation. With a five-figure debt to repay, how are you going to find time to accomplish other things in life. Having a good career is great. But it is not the only thing that makes life meaningful. Most students work super hard for 5-8 years after graduation just to pay-off the student loan.

4. Not paying your student loans in time will cause significant damage to your credit score.

Usually, the repayment period of student loans is a long one. And this can be a good thing as you get to take your time to pay off the debt. Even if you have a low paying job, you can still repay the loan without having to default.

On the other hand, defaulting on your monthly payment will affect your credit score significantly. As your credit score drops, applying for other loans and purchasing a credit card will also get difficult. So, by defaulting on your credit card payment, you have invited a host of other financial problems in your life.


This post is not meant to discourage anyone who wants to apply for a student loan. It is merely a peek into reality. Every student should have an estimate of what they are getting into. This helps them plan well-before they graduate and tackle obstacles in a better way.

How to Get Paid While Getting Your MBA


An MBA is an excellent career move for dozens of reasons, but for those interested in personal finance, an MBAs? earning potential is most appealing. According to the most recent surveys as reported in Financial Times, students can more than double their salaries by earning an MBA, moving from the $70,000-per-year range to the $140,000-per-year range. Even better, salary boosts due to advanced business school credentials like the MBA have only increased in recent years, so investing now is likely to pay even greater rewards in two years, when the program is complete.

However, tuitions for MBA programs have also increased over the years. Between 2008 and 2014, the average costs associated with MBAs rose more than 44 percent, thwarting many would-be MBAs from obtaining that coveted earning potential.

Fortunately, there is good news: It is possible to avoid many of those costs and obtain an MBA without breaking your existing budget. In fact, you might even be able to escape graduate-level business school without a single student loan. Here?s how:

Research MBA Program Requirements

Not all MBAs are created equal. MBA degrees from different schools carry different costs, and they offer different benefits. Therefore, it is important to research a variety of programs before you apply or enroll – and even before you devise a budget and savings strategy.

First, you should understand tuition and fees at various programs. Obviously, the more prestigious the business school is, the higher the costs of earning the degree. For example, the MBA program at Columbia University, the top-rated business school in the country, costs over $168,307 whereas Emory, the 20th best business school in the U.S., costs about $130,280 for two years of study. However, you must then balance these expenses against the average earnings of graduates. Grads from the nation?s top 10 programs earn average salaries of $161,566 whereas the overall average salary for MBAs hovers around $105,146. That?s because hiring managers are more attracted to candidates from well-known, highly respected schools.

To best understand what different programs will cost, you should call and talk to admissions representatives at the schools you are interested in. By doing this, not only will you get to know each school?s customer service quality – which should be a major factor in deciding which program you attend – but you might also get the opportunity to haggle down the price. You might also learn about ways business schools help students pay costs, such as on-campus jobs or assistantship positions.

If you are less concerned about the reputation of the business school and more focused on learning as much as possible from an affordable program, you might target online MBA options. Most online business schools are digital branches of traditional colleges, so you can be certain they offer high-quality education. Plus, many online programs are much lower cost; you can even find online MBA programs that require no GMAT scores, which reduces the time and cost of admissions. There are many advantages to online education, and affordability is a big one.

Apply for Grants, Scholarships and More

This is the advice given to all pursuers of higher education, and that?s for good reason: There are dozens of scholarships and grants awarded to business school students every year, and you could win more than one of them if you only apply. Usually, the application processes for this type of financial aid are relatively easy, requiring only a resume and a brief essay or two. With enough scholarship money, you can pay for more than just your tuition and fees – you can also buy books, pay for room and board and even save up for the future.


Petition Your Employer for Financial Aid

You aren?t the only beneficiary of your advanced education; your future employer also stands to gain from your drastically improved knowledge and skill. Fortunately, many companies are recognizing the advantages of a professionally developed workforce and offer education benefits to encourage employees to return to school. Most often, these benefits take the form of tuition reimbursement: You pay your tuition and fees, and your employer will pay you a portion of those expenses in addition to your regular wages. These benefits programs also sometimes require a time commitment to the company, so you might not be able to find a new employer for a few years after you graduate.

If your current employer doesn?t offer education benefits, you have two options: request that they start one or find a new employer. Employer financial aid coupled with scholarships and the best possible rates for tuition and fees will give you the education you need for the career (and salary) you want.

First Photo Courtesy of: pathdoc

Second Photo Courtesy of: zimmytws


4 Easy Ways College Students Can Invest

4 Easy Ways College Students Can Invest

4 Easy Ways College Students Can InvestIt?s no secret that the average college student doesn?t have a lot of disposable income. In fact, most are up to their eyeballs in debt long before graduation day comes.

Despite having debt, some college students have the desire to start investing early for their futures. Considering the bleak outlook for social security benefits it shouldn?t come as a surprise to the rest of us.

Nevertheless, investing may seem complicated and it can be intimidating to some. Fortunately, there are four easy ways college students can invest.

1. Micro Investing

One of the easy ways college students can invest is by micro investing. Since they lack money in general, micro investing is a way they can start with very little cash.

Stash Invest has an app that allows them to essentially invest spare change. It links to their bank account you can start investing with as little as $5.

You get to select from a grouping of ETFs and stocks and invest based on your goals and tolerance for risk.

2. Fractional Investing

Another easy way college students can invest is through fractional investing. Some stocks they may want to invest in are thousands per share. In the past this has made investing in them a dream for college students on a limited budget.

But with apps like Stockpile, they can sign up free and start investing in their favorite choices with as little as $5.00. What?s more there are no monthly fees or minimums beyond that. It?s a fast, easy, and fun way to start investing.

3. 401(k)

There are employers that offer a 401(k) retirement plan to their employees. If a college student is lucky enough to have a job where this is offered they should sign up.

Most likely a percentage of their pay will need to be contributed. However, this is deducted before taxes are withheld. Then, the employer may offer to add funds as well if the student matches the same percentage.

College students who take advantage of this option can choose which funds to invest in. They can also place money in faster growing funds or some with lower risks.

4. Robo-advisors

Robo-advisors should be counted as one of the easy ways college students can invest. The trading fees are low and they do most of the work for their investors. This makes them a perfect choice for busy college students.

Most robo-advisors have very low minimum investment requirements. In fact, you can invest with Betterment with no minimum balance required.

Students can access their investment accounts easily and on the go from an app right on their phones. This lets them check on their investments whenever they have a few free minutes.

Additional Thoughts

While it?s true that college students should begin investing as soon as possible, they also need to learn to manage their money responsibly.

If they do not already have budgeting skills they should talk to a peer, take a class, or research about budgeting methods. Then, they should set up their own budget and continue tweaking it until they have a system that works for their needs.

Furthermore, they need to control their spending and keep their debt as low as possible. They should set financial goals that are achievable and can also be re-evaluated as time passes.

Investing for retirement in any market while still in school is not a bad idea for college students. However, they should know it needs to be a life-long process and done in coordination with other money management tactics.


Do you feel it is wise for college students to start investing? How else can college students invest?


Photo courtesy of: freestocks-photos

10 Perfect Side Hustles for College Students

10 Perfect Side Hustles for College Students

10 Perfect Side Hustles for College StudentsThe cost of a college education is not cheap. Students who make it all the way to graduation may end up owing thousands in student loan debt, making it hard to make ends meet once they get out into the real world.

To avoid debt, or just earn some extra cash, many students look for jobs. However, college students face unique challenges when it comes to making money.

Classes and practice schedules can make holding down a regular job all but impossible. Traveling back to their hometown on the occasional weekend or holiday may make it difficult to get hired as well.

If any of this hits home because you are facing the same problems, there are some solutions. Below are 10 perfect side hustles for college students that can help.

1. Babysitting

Babysitting is not just for the young teenager. Many parents are looking for sitters who have more experience, especially if their kids are energetic or have special needs.

Being good with kids and having experience could get you hired to care for children in your off school hours. You might even be able to get some of your homework done at the same time and still fit everything into your hectic schedule.

2. Tutoring

When you have a lot of knowledge in some subjects, such as math, you may be able to use that to your advantage. Hire yourself out as a tutor to others who need help and make some money to pay your bills at the same time.

Usually if you are good at what you do you can set your own hours with this side hustle. Additionally, the more success your students have the more you can get paid for this service.

3. Online Surveys

This side hustle doesn?t require a lot of skills and can definitely be done when you have a hectic schedule. Some survey sites pay only a few dollars for reviews on their products and other pay significantly more.

Some good ones to get started with are?Pro Opinion?and Opinion Outpost. You can also use a site like Swagbucks to take surveys, watch videos and more.

Obviously you will need a computer for this side hustle, but as a college student you likely already have one so why not put it to work for you?

4. Use Your Voice

Did you know you could hire out your voice? There are people and businesses that will pay you to do their podcasts and other voice over work from your own home or apartment.

5. Sell Photos

Perhaps you love to take pictures. You can sell your photos online for extra cash and fit it into your schedule whenever it works for you.

The amount of money you make for selling photos will vary, but you could earn as much as half the selling price.

6. Dog Walking

If you consider animals to be some of your best friends, maybe you should try making money becoming a dog walker. This side hustle is a great way to enjoy the outdoors, get your furry fix, and still get all of your studying done.

7. Tailoring

Experience with a needle and thread or sewing machine can benefit you as a side hustle when you are in college. Advertise a few times, do a good job mending or tailoring and you will be making money in a stitch.

8. Baking

Lots of busy people need baking or cooking done and have no time to do it. If you love to cook and are good at it, hire yourself out to others for this service.

You may be able to do the cooking in between classes and in the evenings to make the money you need. Let others sample your work to help you get started.

9. Cleaning

Although this is not a glamorous side hustle it is one that many people have the need for. If you have experience and are good at cleaning this side hustle is a great one you can do on your own schedule.

10. Car Detailing

Many people don?t take the time to clean their cars inside and out even though the need is there. You may not need a lot of equipment to do this side hustle either, but a little elbow grease may be required.

Even though crazy schedules can make working difficult for college students, there are ways it can be done. Try out one of these 10 perfect side hustles for college students to help you keep debt down and earn extra cash.


What other side hustles might be perfect for college students?


Photo courtesy of: sasint

5 Ways to Pay Off Student Loans Faster

5 Ways to Pay Off Student Loans Faster

5 Ways to Pay Off Student Loans FasterGraduating from college is a great step toward a strong financial future. College graduates tend to make significantly more money over the course of their careers than do those only holding a high school education.

However, for most people, college graduation comes with a price ? student loans. Most people leave college with at least some amount of student loan debt, which can be tough when you are living on a modest salary to start your adult life.

So, is there a way to pay off student loans faster?in order to free yourself from this debt? While you might not be able to pay them down as quickly as you would like, the following tips should help you cut into this debt faster than your friends.

1. Make Extra Payments

Okay ? so this might be a somewhat obvious point, but it is important because some people do not know that they can make extra payments each month. When submitting your payment, consider adding even a small amount to cut down on your principal. The extra money you submit will be applied to the principal of the loan, so it will go directly to pay off student loans faster.

2. Live Modestly

While you are still under the pressure of student loan debt, resist the temptation to spend beyond your means. Start out of college by living somewhere affordable and taking on as few other debts as possible. As the years go by, your earning potential should increase and you should be able to afford more and more luxuries in life without jeopardizing your financial well-being.

3. Side Work

These days, it is easy to find a ?side hustle?. While it used to be difficult to take on a part-time job in addition to your full-time employment, the story has changed in the modern world. Look for a part-time job online or at a location near you to make it as convenient as possible. If you dedicate this extra money to your student loans, you can pay off student loans faster than you thought possible.

4. Stick with the Payment Schedule

Most student loans will allow you to restructure the payment schedule in order to extend the life of the loan ? and reduce the monthly payment amount. This is a good option if you simply can?t make the monthly obligation, but do your best to avoid going down this road. It is preferable to stick with the payment schedule in order to get rid of the loan as quickly as you can.

5. Create a Budget

If you fall behind on your finances overall, you might wind up having to delay your student loan payment schedule ? meaning you will be making payments for longer overall. By living on a budget, and sticking to that budget, you can avoid getting into trouble down the line. Be consistent with your budget from month to month and prioritize debt payments over other expenditures.

There are ways to pay off student loans faster so you don’t have to be stuck with them for years to come.


What are you doing to pay off student loans faster??When will your student loans be paid off?


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