How Will This Affect My Budget?
No trust fund? No problem. Just borrow about $30K in loans, and you will be set. Unfortunately, this is a reality that many of us have to face. My mom could not put me through school so I had to turn the government to lend me a hand. Alas, after four years of accrued interest, I must begin my burdensome payments.
Now the government has decided to double my interest. Well, sort of. Many advocates supported the #DontDoubleMyRate campaign by President Obama. However, rates that were not immediately increased may rise in the future. The new proposal on the table suggests switching rates from being fixed to rates that fluctuate with the market it is in. Worst of all, this plan sets no cap for these rates. This proposal could bring short-term relief to those taking out loans, but may bring a lot of trouble in the future.
So what does this mean for you? Aside from crying for a few minutes after the realization that you will be penniless for quite some time, look into creating a financial strategy for after college. You need to ask yourself: How I am going to pay off all these loans? Will I have to move back in with my parents while I save up? Will I have to give up Starbucks? Gasp.
Budgeting before you graduate your alma mater will definitely give you a push in the right direction for the future. Take a look at these sites for some guidance on making a skilled budget. Also, let us know in the comment section below what you are doing to save a few bucks!
Bank of America- College Student Budget
Education Cents – Sticking to a Budget
Debt.org – College budgeting