The student loan industry is huge now. Indeed, outstanding student loan debt now exceeds outstanding credit card debt in the U.S. As you get ready for college this fall, it’s a good idea to think about your college funding options, and consider your financing. If you have a child that is still a few years away from college, it’s never too early to start saving. Here are some ways to avoid student loans:
- Save up: One of the best things you can do is to save up for college. There are tax-advantaged options for saving up for college using investment accounts that compound your contributions. The earlier you start, the more your money can work for you.
- Work toward scholarships: Look around for scholarships. There are a number of small scholarships available. Added up, they could really help out. You can also have your child prepare for the future by getting good grades and choosing a couple of extracurricular activities.
- Get a job: Most college students can handle a part-time job in college. This can reduce some of the need for student loans. On-campus jobs are usually flexible and can make it easy to balance class and work. You can also increase your income through side projects and passive investing.
Developing Good Financial Habits