Can you avoid student loans?
January 17, 2012
There is no denying the fact that paying for college can be financially stressful. The Huffington Post recently reported that the average member of the class of 2010 had accrued more than $25,000 in student loan debt upon graduating.
While many people pursue a college degree to ensure their financial independence in the future, being strapped with student loans can make it difficult.
DailyFinance.com reports that a 2008 survey conducted by Experience Inc. found that many college graduates feel burdened by their immense debts after graduating. In fact, the survey found that 40 percent of graduates with debt took a job that offered higher pay, but less career satisfaction, in order to help pay off their student loans. In addition, 47 percent said that their student loans impacted their decision to pursue a particular career.
A separate survey conducted by Nellie Mae in 2002 found that many major life decisions are affected when individuals are dealing with student loan debt. It found that 44 percent of recent graduates put off buying a home, 14 percent put off marriage and 21 percent postponed having children because of college loan debts, according to DailyFinance.com.
The simple solution to avoiding loans is to dig into your savings to pay your college tuition. While it sounds simple enough, this just isn't an option for most people. After all, the College Board reports that tuition at four year public colleges in the U.S. increased by more than 8 percent for the 2011-2012 school year.
In addition, many people who want to pursue a degree are doing so to increase their earning potential. The U.S. Bureau of Labor Statistics (BLS) reports that in 2010 individuals with a bachelor's degree made an average of $1,038 per week, compared to $767 per week for those with an associate's degree, $712 per week for those with some college (but no degree) and $626 per week for those with a high school diploma.
Unlike loans, which must be repaid, grants and scholarships offer students a way to pay for college without compounding their debt. The good news for parents who want to realize their dream of getting a college degree is that there are many different types of scholarships for mothers, single mother scholarships and grants for parents that can help them partially or fully fund their education without any out-of-pocket cost to them.
