Are you one of the many students who can’t make it through university without financial support? If so, then it’s important that you understand how you can get the most out of your student loan dollars by making them last longer.
College life can be expensive. Apart from the accommodation cost, stationery, and course literature, there are other non-essential expenses every student finds hard to avoid. Working out the student loan is tricky, but it’s also an opportunity to become financially independent and responsible. If you plan on leaving your university without the excessive burden of student loans, take the following tips to heart and stretch your cash from revision season well into your career.
Most students are likely to fret at the idea of budgeting, but it’s critical to instill the habit of staying on top of your finances. Make a list of your monthly bills, expenses, and other financial commitments. Jotdown your income, including loans, grants, bursaries, or family aid. Now take away the costs of essential expenditures from the income and divide it by the number of weeks left until you receive your next loan installment. This will help you determine how much money you can spend on nonessential items and activities, and how much you can save.
Have a plan
Having a plan is a must if you want to stay on top of your loan. There’s nothing more terrifying than discovering that you have overspent your loan amount before completing your graduation. Start by figuring out a reasonable amount of the loan that you can save till after graduation. This will enable you to get ahead of yourself financially and set aside money for the expenses you will need during your job hunting period. Set goals for increasing your income and reducing your expenses, and make sure you stick to it.
Scale down your expenses
Have you put down your list of expenses yet? If you have, figure out things you can save on. Can you bargain for cheaper accommodation? Are you leveraging the best tariffs on utilities? How about having a bus card or a railpass to minimize your daily traveling expenses? On top of that, being a student comes with several discounts – make sure you play your student card wherever possible to earn more discounts.
Scout out for extra cash
The universal truth about student life is that every student’s expenses exceed their income. As such, it’s important to find ways to increase your income and minimize the expenses. The best way to achieve this is by getting a part-time job. This will enable you to do something constructive during your free time while getting the hang of what it’s like to earn your own bread and butter. Trying freelancing or monetizing on your hobbies and talents is something you can always do. We also recommend you check out your eligibility for grants, bursaries, charity funds, or scholarships. Plan on what you will make
The investment of education needs to be measured by the return on investment through salary in your chosen career. People with MBAs make 20% more than those without, and you can attend MBA programs online for subject matters such as hot career fields like Business Data Analytics.
Lastly, if you do not need all of the money from your student loan straight away, put it in a savings account that pays a decent interest. This will allow you to earn a few dollars off your loan while still being able to easily access it whenever required.