Monthly Archives: February 2024

According to Forbes.com, the average debt for a student loan borrower in the U.S. is now $28,950. Since the cost of living has increased greatly in recent years, this debt burden can be very high and take many years to pay off. Here are a few tips for avoiding large amounts of student loan debt:

1. Graduate from College. According to the National Center for Education Statistics, about 37 percent of borrowers enrolling in a four-year college do not obtain a degree within six years. Individuals who take out loans but don’t graduate can’t reap the financial benefits of completing a degree. Those with a four-year college degree earn about $24,000 more per year than those with only a high school diploma (Indeed.com). This is $24,000 more a year that college graduates can use to help pay off their student loans.
2. Attend a Junior College and Transfer to a Four-Year College. According to communitycollegereview.com, the average cost of attendance for a junior college for in-state students is $5,169 per year. And, in some states, junior college is free for in-state residents. Many junior colleges offer a guaranteed path to a four-year college if certain criteria are met.
3. Take AP, IB, and/or College Courses in High School. Most colleges will grant college credit for strong scores on AP tests. Students who take a handful of AP exams and do well on them could graduate a semester or a year early from college, saving quite a bit of college tuition. Also, in many places, high school students may take community college courses at no charge and apply their college credits toward graduating from a two or four-year college later on.
4. Strongly Consider Finances When Choosing a College. If a student has the option to choose between multiple colleges, it helps to think about the actual amount that student will have to pay to attend that college. Some colleges may be more selective, but may ask for a larger payment from the student. It may be better to choose a less selective school that might carry a smaller price tag.