Smart Money Moves for College Students

Navigating Finances before university

In this concise yet impactful article, I’ll explore essential financial considerations for students returning to college or university. Students should know several critical financial aspects, from budgeting to student loans. Let’s ensure you’re well-prepared for this exciting academic journey!

Budgeting: Making a budget is critical to controlling spending and keeping finances in order. List expenses like tuition, textbooks, housing, food, transportation, and personal items. Allocate funds and track your spending throughout the term.

Basics of Banking: Learn how banking functions, including checking and savings accounts, debit cards, and online banking. Learn about fees, interest rates, and managing your accounts.

Importance of Saving: Begin to save money. Saving even little amounts helps. Emergency funds can help cover unexpected expenses.

Avoiding Credit Card Pitfalls: If you have a credit card, use it responsibly. Pay off the balance in full to avoid high interest charges. Do not overspend or gather debt.

Building Good Credit: Understand credit scores and their influence on your future finances. Pay bills, manage your credit card debts, and avoid excessive debt.

Filling the FAFSA: Complete the Free Application for Federal Student Aid (FAFSA) to determine federal aid, grants, and loan eligibility. It’s essential for accessing financial assistance.

Understanding Student Loans: Consider federal and private options if you need loans. Learn about interest rates, repayment terms, and the impact borrowing has on your future finances.

Being financially savvy is crucial for making intelligent choices in college. Learn more about managing your money, and seek out workshops, tools, and money-learning courses.

Can i Apply for Student loan forgiveness?

I’ll provide separate answers for Canada and the United States, as student loan forgiveness programs differ significantly between the two countries. For Canada, Canada does not have a broad student loan forgiveness program like the one recently proposed in the United States. However, some specific programs offer loan forgiveness or repayment assistance:

  1. Canada Student Loan Forgiveness for Family Doctors and Nurses: This program offers loan forgiveness to eligible family doctors, residents of family medicine, nurse practitioners, and nurses who work in underserved rural or remote communities.
  2. Repayment Assistance Plan (RAP): While not forgivable, this plan can reduce payments based on income and family size. In some cases, the government may cover the interest portion of the loan.
  3. Severe Permanent Disability Benefit: This program forgives student loans for those with severe permanent disabilities.
  4. Provincial Programs: Some provinces offer loan forgiveness programs for specific professions or circumstances.

For Americans: The United States has several federal student loan forgiveness programs:

  1. Public Service Loan Forgiveness (PSLF): Forgives the remaining balance on Direct Loans after 120 qualifying monthly payments while working full-time for a qualifying employer.
  2. Teacher loan Forgiveness: Offers forgiveness of up to $17,500 for teachers who work in low-income schools for five consecutive years.
  3. Income-Driven Repayment (IDR) Plan Forgiveness: The remaining balance is forgiven after 20-25 years of payments under an IDR plan.
  4. Biden Administration’s Student Debt Relief Plan: This plan, which would forgive up to $20,000 in federal student loans for eligible borrowers, is currently on hold due to legal challenges.
  5. Close School Discharge, Total and Permanent Disability Discharge, and other specific circumstances may qualify for loan forgiveness.

It’s important to note that eligibility requirements, application processes, and available programs can change. For the most up-to-date and accurate information, consult the official government websites or speak with a student loan expert in your country.