Responsible Borrowing

All through high school, we constantly hear about the importance of financial planning so that way we can graduate college with little to no debt. We are told to get good grades so that way we can earn scholarships and the importance of completing the FAFSA. We are given the impression that if we do these things, we won’t have to worry about affording college. Seldom are we told about the grim reality of financing our education and student loan debt. We are rarely told that over 40 million Americans currently carry the burden of student loan debt, that the average amount of debt per person is over $33,000, or that 7 million Americans have defaulted on their student loans because they can’t afford their payments. Although these statistics may make paying for college almost seem like a set-up for failure, students can help guarantee their future financial security through responsible borrowing. Responsible borrowing means to make conscientious and educated decisions about how much to money to borrow through student loans. This often means borrowing only what you need, rather than taking out the full amount that you are eligible for. Doing so will save you
In addition to simpler tactics to save money such as applying for scholarships and setting aside 25% of each of paycheck in a savings account, I have created two larger, more substantial money-saving strategies. The first money saving strategy I have undertook was making the decision to try to earn my bachelor’s degree in only three years. Doing so could save me close to $18,000 in educational expenses. To help me reach my goal, I have taken advantage of the free college courses that are available to me at school through Western Iowa Tech and the College Now program, and have subsequently earned over thirty college credits that can be applied to my major at Iowa State