A few tips that can help you plan your college career
Updated on May 14, 2020
If you are considering going to college, it’s essential to make sure that you successfully plan your educational career. In order to make college worth the money, you need to choose a career path that will pay off and select the right repayment plan for your student loans. Here are a few tips that can help you have a financially successful college career:
Consider the cost of your education and your career path
The cost of your education varies greatly depending on the major that you choose and where you go to school. Some career paths require extensive education and have the potential for high earnings, which can make taking on a large amount of student debt a financially sound decision in these circumstances.
For example, attending medical school requires taking on a large amount of debt for many students, but it can lead to a highly lucrative profession. However, degrees that generally do not lead to a lucrative career and are expensive tend to be a much less financially sound decision.
Pick a repayment plan that’s right for you
While many people assume that a standard repayment plan is the only option, this actually is not the case. It’s possible to choose a repayment plan that’s based on your income, which can be advisable if your starting salary is not likely to be sufficient to make payments on your student loans with a standard repayment plan.
Some repayment plans allow you to pay back your loans over a period of 20-25 years instead of 10 years, which can greatly reduce your monthly payments. However, it’s important to know that you can change your repayment plan after you make your initial decision. For instance, you can switch from a standard repayment plan to one that is based on your income later on.
Consider paying off some of the loan while you’re in school
If you have a paid internship or job while you’re in college, you might want to consider making payments on your student loan before you graduate. This can reduce your overall amount of debt and is likely to be quite beneficial to your financial future.