Most graduates are struggling to pay their student loan debts. In fact, with the rise of college fees most people including those who have stable jobs are facing a massive student debt crisis. The situation has become so bad that those who default on a loan can get reported to credit bureaus which end up damaging their credit scores. Even after declaring bankruptcy this is one of the debts that you can never dodge. Currently, there are various ways in which students can avoid getting into huge debts and focus on studying instead of worrying about tuition.
Use Income-Share Agreement
One way which has gained popularity and prevents accumulation of student loan debt is the income-share agreements (ISAs). In this method, students allow the funders to cover their cost of education. And in exchange, the student agrees to pay a specific percentage of their income in a particular time. Unlike other education loans, ISAs repayment plan is based on your future income over a fixed term. In short, how much you repay is tied to your future salary.
However, if you are in a high earning field, it is best to avoid this option as it can turn out to be more expensive in the long term. That is why it is essential to know how much your ISA will cost. You also need to find out if you can pay off an ISA early. Before signing any ISA contract ensure that you fully understand what happens when you default on the loan. Remember, the consequences of defaulting vary from one lender to another.
How Much Do ISAs Cost?
More education institutions have started offering ISAs. How much it costs will depend on various factors such as how much you want to borrow, how much you will earn and how long your repayment periods will be. However, if you are considering opting for ISAs, then it is best to check with the college you are applying to so that you can know if the option is available.
Given that ISAs are tied to how much you will earn when you opt to take it, you are free of any high repayment risks that you cannot afford each month. Additionally, you are less likely to risk ruining your credit score by taking this type of loan.
Apart from ISA, there are other alternatives on how to graduate from college debt-free.
While in some instances it is impossible for a student to pay for their education, hence the need to take a student loan, there are some circumstances where you can eliminate student debt. Crowdfunding can help you pay off your college education. The strategy with this method is that people in your life contribute to creating a fund that would help pay for your tuition. With crowdfunding, you eliminate the need to have a student loan debt hanging over your head for the rest of your life.
Get a High Paying Part-Time Job
While you do not need to work insane hours, if you are to pay for your school fees, then you need to find a part-time job that pays a decent wage. The great thing about most part-time jobs such as a pet sitter, tutor, transcriber, freelance writer, and many others is that they have flexible working hours and will not interfere with your school work. However, working as a way to pay for tuition leaves less time to do assignments. With piling up tasks that have to be submitted within a few days some students can opt for custom writing services that provide unique content that meets academic standards.
Consider Online College
Online courses tend to be cheaper than traditional full-time college programs yet offer the same quality of education. Online classes also give you a flexible schedule and alleviate housing costs by allowing you to remain in your current living conditions. However, the online tuition costs vary from one institution to another, so it is best to consult first. By opting for online courses, you will cut down on the money needed to cover your college education hence reduce the chances of acquiring student debt.
Apply for a Scholarship
Not all scholarships are based on academic merit; you can get one based on your heritage, athletic prowess, and creativity. You can also win a scholarship for community service, having unique hobbies, traits or strengths.
Do not let high tuition fees shatter your dreams of going to college. There are plenty of ways to get financial aid that can help bring the cost down. Hopefully, the listed above options can help you pay for college.