Explore all options before taking out student loans
10/12/2010
By Credit.com Staff
Returning to college to get a degree can be daunting for older Americans who have been out of school for awhile, but deciding how to pay for an education can be even more troublesome. Many individuals may assume loans are the most efficient way to fund college tuition and expenses, but there are a number of other options to consider.
"The most important thing is to look carefully at your bottom-line costs," Institute for College Access & Success president Lauren Asher told the Boston Globe. "Don't assume that a school with a low sticker price will wind up costing the least."
Consumers should apply for scholarships and grants through both the Free Application for Federal Student Aid, a government website, and directly through their university. Individuals returning to school for graduate degrees may also have their tuition waived and receive a stipend for taking on certain university positions, such as teaching assistants.
Tax credits are another way many students lower their education costs. The American Opportunity or Lifetime Learning Credits give individuals tax benefits for eligible education-related expenses.
Speaking with a financial aid advisor may help consumers explore their options and avoid taking on unnecessary loans. Currently, student loans have exceeded credit cards as the highest form of debt Americans carry.
