Student
loan debt is at a record high, and this issue is only getting worse. Loans may
be one’s only way to get money for a college education. Not having a solid
payment plan in place can result in long-lasting negative financial
consequences of debt. Overwhelming debt doesn’t have to be part of the higher
education equation. It is possible to graduate with manageable debt and, in
some cases, eliminate it completely.
To make college a reality for many, a few innovative new tools and resources are now available. Whether you're a parent preparing on behalf of a young child, a high school student just starting to think about college, or a current college student trying to manage your finances for the first time, here are some of the best resources available anywhere to help provide a debt-free graduation:
1.
CollegeBacker:
For
parents, it can be confusing to navigate the college savings process. 529
College Savings Plans are a type of tax-advantaged investment account
designed for college savings. They’re one of the best ways to save for college.
They offer flexibility,
low risk growth potential, and tax benefits for families. CollegeBacker makes it easy to not only find the best plan for your
needs.
It
makes it easy for family and friends to contribute to your student’s college
education. Whether for a grandparent who wants to contribute on an ongoing
basis, or as a way for friends and family to give on special occasions like
baby showers and birthdays, CollegeBacker
makes saving for college a community effort. Starting a college savings account
early and contributing regularly is one of the best ways to ensure your child
graduate debt-free.
2.
Frank: The first step towards getting financial aid
for college (including federal, state and school grants and loans) is filling
out the Free Application for Federal Student Aid (FAFSA). Yet, just 47 percent of eligible students make
it through the application process and actually submit the FAFSA.
Frank aims to change that
by offering a free, user-friendly alternative to the Department of Education’s
application that takes just minutes to complete. Taking advantage of all the
financial aid options available to you, which includes needs-based aid, work
study, scholarships, and grants, is one of the most important steps to
graduating debt-free.
3.
Mint
: While
tuition is the largest share of student debt, other expenses can add up for
students living on their own for the first time. One of the best ways to avoid
taking on unnecessary debt for living expenses is to get in the habit early of
creating a budget and sticking to it.
Mint is a popular
budgeting app that tracks spending and debt, and enables you to create budgets
for everything from housing and groceries to coffee, alcohol, and
entertainment. For students using credit cards for the first time, it’s a great
way to keep a close eye on spending and avoid graduating with a hefty balance.
4.
Raise.Me:
Raise.Me is a social enterprise that partners with
colleges and universities and enables students to earn “micro-scholarships”
throughout high school. Unlike many scholarship matching services, Raise.Me is open to students as early
as 9th grade. Students can earn money for college based on good grades,
volunteering, and extracurricular activities.
Once
the student applies, gets accepted, and enrolls at a participating university,
the scholarship is applied. By earning scholarships early for their high school
achievements, students not only earn more towards college over a longer period
of time, they gain motivation and ambition as they move through high school and
plan for college.
5. Scholly
: Each
year, an estimated $49 billion is awarded to students
by the federal and state governments, colleges and universities, and private
sources like individuals, foundations, and nonprofit organizations. Yet about
$100 million in scholarship money also goes unclaimed each year in the U.S.
This free money is just waiting for students, but many aren’t sure how to find
it.
Scholly is a
scholarship-matching online platform and mobile app that has helped students
earn more than $50 million for college to date. Their platform delivers
targeted matches, so students can focus on applying for the scholarships they
have the best chance at winning. It’s open to high school seniors, current
undergraduates and graduate students in the U.S., and international students
coming to study in the U.S.
“I think building the middle class, investing
in the middle class, making college debt-free so more young people can get
their education, helping people refinance their - their debt from college at a
lower rate. Those are the kinds of things that will really boost the economy.” (President Trump) [i]
[i] Sources used:
·
“5 Innovative Tools for a Debt-Free College”
bAbby Chao
·
“The Debt-Free College Degree” by Sean Martin
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