How annoying is it when someone says, “I worked my way through university?” Emphasis on the “I”, as in, why can’t you?
If you’re asking yourself why it’s so hard to afford school or pay back loans afterwards, here’s the thing: It’s actually not the same as it used to be, because university is more expensive than ever! On average, even if you receive financial aid, you have to shell out 38% more for a public four-year school than a student did 10 years ago. And that’s only the beginning of what you’re up against financially. “I know students who sell their eggs, give blood, and worse,” says Dr Sara Goldrick-Rab, leading researcher on higher education. “But there are safer ways.” After following 3 000 students trying to get a university degree for her new book Paying the Price(The University of Chicago Press; R453) she has a few to suggest:
1 Don’t trust the sticker price
“It’s not tuition that’s driving the cost,” says Dr Goldrick-Rab. “It’s actually living expenses, transportation, fees, books, and school supplies. So have someone walk you through the numbers to get a clear sense of what you’ll pay, and then add another R140 000 per year. I don’t want to scare people, but that’s what the lessons from my study suggest.”
Related: The broke girl’s guide to saving money
2 Apply for financial aid – ASAP
“Do it as soon as you possibly can because it helps you plan ahead,” says Dr Goldrick-Rab. “Some grants and other sources of aid are a zero sum game – which means the more people who apply, the faster they run out.”
Related: 8 Golden rules of managing debt
3 Be careful not to work too much
“Last year I had four jobs – at a fitness centre, as a clothing store assistant, nanny and tutoring at an adult education centre,” says Elizabeth McKay, 21, who worries about paying off her loans because she wants to go to law school. Dulce Ramirez, 22, worked the night shift at a restaurant for her first three years. “I’d be there till 12 or 1am and then go do homework,” she says.
Dr Goldrick-Rab stresses that financially, your first priority should be to do well academically. “University gets way more expensive if you don’t graduate on time, and you start adding years,” she says. “If you were a C student in high school you should do everything you can to not work at all. But that may not be possible, so I’d say if you qualify for the first R50 000 of a loan as subsidised – meaning you’re not charged interest when you’re in university – go ahead take it, and then work as modestly as you can.” For all students, find something nearby that’s not too physically taxing (for example, nix the night shifts). Sometimes you can get work-study as part of your financial aid package and many of those jobs are on campus. “The thing to know is that you actually have to go get the job,” says Dr Goldrick-Rab. “And the max you can earn is usually not that much.” The other thing to know about working: If you rake in the money, you may lose your financial aid.
Related: 6 Ways to work smarter (not harder!)
4 Consider other options for funding
Income share agreements (ISAs) are arrangements in which private investors front money for your university education in exchange for a percentage of your income afterwards for a set period. ISAs may invest specifically in underserved students or those in a certain major or field. These agreements have pros and cons – but one of the benefits is that you don’t pay interest. “Another option,” says Dr Goldrick-Rab: “Put up a crowdfunding campaign at GoFundMe.com.”
5 Eat up when it’s free
“If there’s a food catering package included in your residence fees, use it. And find out what events and classes have food and go load up,” she says. “Don’t let pride get in the way.”
Related: How to stop wasting money NOW
6 Help change the system!
“More affordable university has got to be a voting issue,” says Goldrick-Rab. The #FeesMustFall protests began in 2015 and have become a flashpoint with violent clashes and calls for free education. ”Growing up surrounded by violence and poverty, I didn’t even know about university,” says Dulce. “Education is not just my ticket out of my neighbourhood; it’s the way to go back and change it – and that starts with fighting for finance reform so we all can go to university.”
T aken from GLAMOUR US. Read the original article here.
Looking for more money-saving advice? Be aware of these mistakes that will bust your budget and don’t forget to include these things in your monthly financial planning!
