Category: Financial Wellness

Your academic life is so important. The key to being successful this school year is staying on top of your
studies and taking care of yourself. Below, we collected six simple, accessible tips that can positively
impact your studies.

Step 1: Set the Scene

A great first step toward academic success is ensuring you have a place to make success happen. A
clean, organized space for your study sessions is vital to your focus. This could be a dorm desk or a
favorite study spot on campus. If your space is feeling too cluttered – try working at a coffee shop
instead. On a budget? Local libraries often have plenty of open tables, and you can make yourself coffee
at home!
Once you get settled in a place you can focus, it’s time to find your best learning style. Consider the
different ways you’ve studied in the past and figure out what works for you. You can try taking notes
over what you’ve read, creating flashcards from index cards or using a digital tool such as Quizlet.

Step 2: No Cramming

You may have days where your to-do list seems impossible. Remember that trying to accomplish
everything the day before can do more harm than good. Be sure to fill out your planner with
assignments as soon as you know of them. This will give you the opportunity to work on upcoming
assignments before they’re due. By breaking down manageable daily tasks instead of cramming it all
into one all-nighter. This way you’ll not sacrifice your sleep and avoid burn out.

Step 3: Try Body Doubling

If you need some accountability — try the body doubling technique! Body doubling is the idea that you
can be more productive with a friend or mentor who is also working on a project. This technique can
also work for self-care tasks such as organizing your space or tackling some laundry!

Step 4: Goal Setting

Believe it or not, there is a science to setting goals. The goals you set for yourself should be both realistic
and rewarding. For instance, instead of setting the goal “Get all straight A’s this semester,” try a smaller
but related goal: “I’m going to study 6 hours per week.” By doing this, you’ve created a healthy,
achievable goal that leaves time for plenty of study breaks, adequate rest, and avoids mental fatigue.

Step 5: Create Checklists

If you’re a visual learner, then checklists are for you! Keeping a physical list of tasks not only keeps you
accountable, but helps you manage the time needed to complete the tasks.
Have a lot of deadlines coming up? Use your syllabi as a guide to make a list of assignments and exams
in order of their due date. This will help you focus on time sensitive tasks first and will keep important
dates from creeping up on you.

Step 6: Celebrate!

Don’t forget to reward yourself for hard work. Even if it’s as small as taking breaks during an intense
study session, it’s important to be kind to yourself. Be sure to step away when you’re frustrated—try
switching up your study method or going for a quick walk.
Remember that sitting down at a desk all day doesn’t serve you or your studying. In your free time,
consider going outside or taking a yoga class. There are so many resources out there to get you outside
and moving for the sake of your stressors.

Disclaimer

This blog was written by our partner, Ascent. Sparrow is not responsible for links to third-
party websites where the security and privacy policies may differ.

About Ascent

Ascent is an award-winning lending company, committed to revolutionizing how students and families
pay for higher education. Check out Ascent’s blog for other student tips and guides to navigate your
college journey.

Building a college list, or a list of colleges and universities you’d be interested in applying to, is an important step when applying to college. 

It can help you identify your best-fit colleges, narrow down your options, and make informed decisions about where to apply and ultimately attend. 

If you don’t know how to build a college list, follow these steps. 

Start Early

Rome wasn’t built in a day, and your college list shouldn’t be either. 

If you have the opportunity to do so, start building your college list during your junior year of high school. That way, you’ll have plenty of time to research colleges, gather information, and make informed decisions. 

Starting early can also help you reflect on your priorities and goals, without the pressure and stress of impending deadlines.

Create a List of Must-Haves

Whether it’s a fierce school spirit, an emphasis on STEM fields, or rich research opportunities, brainstorm a list of qualities you want your future college to have. This will help you narrow down your college list by allowing you to see how the schools you’ve selected differ.

Here are some factors you can consider: 

Inside the Classroom

• How big is the average classroom?
• Do you prefer large or small classroom sizes?
• What kind of academic resources does the college have?
• What major/field of study is the college known for?
• What are the top programs at the college?

Outside the Classroom

• How many clubs (that you would be interested in) are there on campus?
• What do students do for fun?
• Is the campus walkable? Do you need a bike?
• Do students generally live on campus or off campus?
• Does the college provide housing for all four years?
• Is Greek life prominent on campus?
• What does the social scene look like?

Beyond the Campus

• Is the campus in a small town or a big city? Which do you prefer?
• What does the weather look like?
• Is the nearest city accessible?
• Is the neighborhood safe?
• What do students usually do on the weekends?
• Where are the nearest malls/grocery stores?
• How easy is it to get off campus? Does the school provide transportation, or do you need your own car?

Student and Alumni Makeup

• What is the most popular major?
• Is the student body demographic diverse or homogenous?
• What fields of work do graduates usually enter?
• What’s the average graduate’s starting salary?
• Are there any notable alumni?
• Does the school offer need-based or need-blind financial aid?

College Statistics

• What is the national school ranking?
• What is the student graduation rate?
• What is the student retention rate?
• What is the annual tuition?

Research Schools

After narrowing down the qualities you want in a college, it’s time to start digging. Take advantage of the Internet by looking into schools of interest, reading articles, and using different online tools.

Niche is a useful site to look through if you want to know more about how different colleges are ranked in the United States.

If you want to know more about a school’s numbers, consider using the U.S. Department of Education’s College Scorecard. The website gives each college a “scorecard,” which tells you everything about the school’s graduation rate, financial aid costs, test scores, and acceptance rates.

The College Board also has a great college search tool that allows you to explore colleges by filtering through location, major, type, and campus life.

Create a Document With All the Details

Now that you have an idea of what schools you might be interested in, along with the qualities you look for in a school, it’s time to get it all on paper. List out each of the schools, how they rank in terms of the qualities you’re looking for, and whether they’re a safety, match, or reach school

Many online tools can help you determine which category the school falls into based on your academic profile, standardized test scores, GPA, and more. It’s important to have a mix of safety, match, and reach schools to increase your overall chance of admission.

Consider using this sample college profile as inspiration:

Narrow Down the List

Narrowing down a college list can be challenging, but it’s an important part of the college search process. Generally, it’s recommended that students have anywhere between 5-10 colleges on their college list. Here are some steps to help you narrow down your college list:

#1: Speak With Current Students and Alumni

Speaking with current students and alumni at the schools you are interested in is an effective way to learn more about a school and determine whether you’d be interested in attending. 

You can do this in several ways:

• Reach out to the school’s admissions office and ask them to put you in contact with a current student.
• Connect with a student or alumni on LinkedIn.
• Speak with any high school alumni who attend/attended the school.
• Participate in a Student for a Day program. Some schools will allow you to tag along with a student for a day to get a feel for what it’d be like to attend the university.

Make sure to ask them specific questions like:

• What is your favorite and least favorite part about attending?
• Do you feel like professors are helpful and responsive to your needs?
• Do you feel supported by your academic advisor?
• How easy or difficult was it to settle in here? (ie. to make friends, to find clubs to join, etc.)

#2: Tour the Campus

There’s no better way to determine your “fit” with a school than visiting it. This way, you can really get a feel for what the school is like and decide whether you can see yourself there for the next four years.

However, visiting in person isn’t always a make-it-or-break-it for determining whether you “fit” at a school. There are plenty of students who never visited the campus and ended up loving it, and vice versa.

If visiting in person isn’t an option for you, check whether or not the school has a tool that allows you to do virtual tours. Youtube is another great place to see what a school looks like. 

#3: Seek Advice

Talk to guidance counselors, teachers, and other trusted adults to get additional perspectives. Speaking to individuals who have been through the process before can help you gain some insights into how you can whittle down your college list.

#4: Have a Serious Talk With Your Parents About Affording College 

Whether or not affordability is a factor in determining which colleges you want to apply to, it’s important to have a serious talk with your parents about paying for your education. This way, your parents will have a general idea of what costs to expect, while you can gain more exposure to what finance in the real world looks like.

Speak with your parents to determine what is and what isn’t affordable.

Stay Open to the Possibilities

It’s important to keep an open mind throughout the college application process. While attending your top school may be your #1 goal, it may not always be the case that things work out the way you want them to.

Nothing is set in stone — you may be surprised by the offers you receive from other colleges and where you end up.

Congratulations on being accepted into college! (*virtual fistbump*)

If you’re leaving home to embrace the “dorm life,” we’re here to help. Our comprehensive college dorm checklist covers everything you should and should not pack as you leave home. 

What are Must-Haves for College Dorms?

When you’re moving into a college dorm room, it’s better to be prepared instead of unprepared. If you think you might need something, take it. You can always throw something out or leave it under your bed, but you can’t always go back home to grab something.

Clothing and Accessories

Consider this: You’ll want to have enough clothes to last you a full week, including pajamas, impromptu going-out nights, and mid-day clothing changes because you dislike your current outfit. Think about the weather of the region you’ll be living in. Is it notoriously cold? Does it snow? Will you be prepared for a rainstorm or scorching heat?

• Underwear
• Socks
• Pants: jeans, leggings, trousers, sweats
• T-shirts: blouses, tank tops, regular shirts
• Pajamas
• Slippers/flip-flops
• Sweaters
• Jackets (Including weather-appropriate ones like a rain jacket and/or winter jacket)
• Shoes: sneakers, dress shoes, athletic shoes, boots
• Swimming suit
• Bathrobe
• Sunglasses
• Jewelry

Toiletries, Hygiene, and Beauty

Consider this: College bathrooms are the bane of existence for many college students. You’ll definitely want to remember to pack a shower caddy and shower shoes.

• Shower shoes
• Towel (If you want to make laundry day easy, pick a towel color that matches the majority of your clothing. That way, you can throw everything together in one batch, rather than having to do a separate load of towels.)
• Shampoo
• Conditioner
• Soap/Body wash
• Face wash
• Body lotion
• Face lotion
• Sunscreen
• Bathrobe (Students might wear their bathrobes to/from the bathroom before/after showering. If you’d prefer to save some space, opt for a 2-in-1 situation – a towel that velcros around you – instead of a separate towel and bathrobe.)
• Shower caddy
• Makeup
• Toothbrush
• Toothpaste
• Floss
• Mouthwash
• Q-Tips
• Feminine hygiene products
• Contact lens care
• Tweezers
• Hairbrush
• Desk mirror
• Full-length mirror

Health and Medication

Consider this: You’ll never be as sick as you are in college. Prepare for the worst and keep your immune system strong and healthy by eating nutritious meals, taking vitamin supplements, and exercising.

• Vitamins
• Aspirin or another pain reliever 
• Stomach medication (Antacid, Tums, etc.)
• Prescribed medication
• Cough drops
• Bandages
• First aid kit

Electronics

Consider this: Extension cords are a must-have in college. Those dorms just don’t have enough outlets. P.S. Don’t forget to bring all of the chargers for your electronics. 

• Laptop
• Phone
• Chargers
• Extension cords
• Speaker
• Headphones

Bedroom and Laundry Supplies

Consider this: Unless you hire someone, you will have to do your own laundry in college. If you don’t know how to do it, there’s no time like the present to learn. (P.S. A mattress topper will save you in college! I’d suggest investing in a high-quality topper to get a bang for your buck during all four years of college.)

• Pillows
• Bed sheets
• Mattress topper
• Blanket
• Laundry detergent
• Drying sheets
• Laundry basket (A functionable laundry basket will save you a lot of trouble in college. Ditch the laundry bags. We suggest getting a freestanding laundry basket with wheels.)

Kitchen Supplies

Consider this: Most students rely on the school’s dining hall for their meals. You’ll rarely find yourself having to cook in college, but you will want the basic necessities. 

• Water kettle
• Dish soap
• Cup/mug
• Water bottle
• Straw cleaner
• One spoon (You usually won’t need a whole set of silverware because you can wash accordingly after each use!)
• One fork
• One bowl
• One plate 
• Mug
• Sponge
• Food-storage containers
• Microwave (Unless your roommate is bringing one)
• A mini-fridge (Unless your roommate is bringing one)

Cleaning Supplies

Consider this: Your room, your responsibility. You can either bring or buy some cleaning supplies in college to keep your space neat and clean. 

• Paper towels
• Hand-held vacuum
• Swiffer/Broom
• Cleaning wipes
• Tissues

Desk Supplies

Consider this: Some things never change (like your back-to-school shopping list). Believe it or not, you’re going to want to pack your highlighters and index cards as much as you did in elementary school. 

• Stapler and staples
• Pens
• Pencils
• Pencil pouch
• Notebooks
• Folders
• Index cards
• Sticky notes
• Paper clips 
• Rubber bands
• Tape
• Glue
• Scissors
• Highlighters
• Ruler
• Desk lamp
  

Dorm Necessities and Storage

Consider this: Your dorm should look as it did when you first moved in. That means no thumb tacks or any other object that might inflict irreversible damage to your walls. The Command Hooks and Command Strips will save you! 

• Earplugs
• Sleeping mask
• Under-the-bed storage bins
• Command hooks
• Command strips
• Air humidifier (Dorm air conditioners and heaters are known for being pretty dusty. If you’re allergy-prone, this is a must-have.)
• Umbrella
• Hangers (The slimmer the better – college closets and wardrobes are usually pretty tiny.)

Important Documents and Items

Consider this: It’s always good to have your important documents on hand (even if they may be a copy). If you’re driving at school, definitely don’t forget to grab your driver’s license, car registration, and insurance. 

• A copy of your Social Security Card
• A copy of your birth certificate
• Passport
• Driver’s license
• Credit card(s)
• Health insurance information
• Car insurance and registration

Nice to Have Items (as a fellow college student)

• Yoga mat
• Compact luggage for weekend travels
• String lights
• Coffee maker
• Filtered water pitcher (If your college doesn’t have filtered water stations)
• Tide Sticks
• Bottle opener

What Not to Bring to College

Now that we’ve covered what you should pack, let’s dive into what you should not bring to college.

• Candles/Incense (Prohibited)
• Printer (Your dorm probably already has one!)
• Pots/Pans (Cooking may be unrealistic)
• Too many books (As a college student, it may be hard to find the time in the day)

Closing Thoughts From the Nest

Use this comprehensive college dorm checklist to help you be as prepared as you can for leaving home and moving into a college dorm. 

Moving out to go to college is a big turning point in your life. Be sure to have grace with yourself and spend as much time as you can with family and friends. Good luck!

As an adult, your credit score matters quite a bit. Whether you’re seeking approval for an apartment, a mortgage, or a car loan, your credit score will be utilized in various important life stages. If your student loans seem to be bringing down your score, you may be wondering how to remove student loans from your credit report. Unfortunately, you can’t remove accurate information from your credit report — legally, of course.

That said, there are a few things you can do to remove student loans from your credit report if inaccurate information is present.

Dispute Inaccurate Information

While you can’t remove accurate information from your credit report, you can dispute inaccurate information. For example, if you find one of the following on your credit report, you should dispute it:

1. A late payment you didn’t incur
2. A loan that isn’t yours
3. Inaccurate default status
4. A loan inaccurately listed in forbearance or deferment
5. A loan account marked as open that is actually closed

To dispute it, contact your student loan servicer as soon as possible. While there may be a phone number listed online, we recommend filing your dispute in writing. That way, you have the entire interaction documented should the process be inefficient or ineffective.

How to Write Your Dispute Letter

When crafting your dispute letter, ensure you have the following:

1. Your student loan reference number
2. Contact information (ie. your phone number and email address)
3. An in-depth explanation of the issue
4. Documentation of the issue (ie. proof of the error in a credit report from one of the three major credit bureaus — Experian, TransUnion, or Equifax)
5. Documentation of the accurate information (ie. proof of on-time payments)

If you are still in school and aren’t required to make loan payments, yet your credit report shows late or missed payments, you may need proof of enrollment to have the information removed from your report. Contact your school’s registrar’s office for proper documentation.

If you find that your lender or loan servicer is uncooperative, you may need to follow up multiple times to get things moving. If you’re still struggling to reach them, file the dispute online with the credit bureau directly.

How Long Will it Take for the Error to Be Fixed?

Typically, it takes around thirty days to investigate a dispute and report findings. However, there are two main reasons the process can take longer: insufficient information was provided or inefficiency of the lender or loan servicer involved.

1. If you fail to provide sufficient information on the first go-round, the investigating agency may need to reach back out to you to ask for more information. You can avoid this by providing in-depth descriptions of the issue and proper documentation upfront in your initial dispute letter.
2. If you opt to dispute via the credit bureau, they’ll need to contact your lender or loan servicer to investigate further. If they don’t respond in a timely manner, it could extend the length of the process. This is one reason why disputing the error yourself with the lender or loan servicer directly can be more efficient.

Regardless of how you choose to file the dispute, don’t be afraid to follow up with each party involved throughout the process. Sometimes, a gentle nudge to move the dispute forward can speed it up quite a bit.

Pay Your Loans Off

A student loan is a line of credit. When you close a line of credit, the credit history associated with it goes out the window, too. So, when you pay off your student loans, they will no longer be on your credit report.

While this method isn’t the simplest nor quickest solution, implementing a more effective debt payoff strategy may help you get to it faster.

For example, refinancing your student loans can help you pay off your debt faster. Refinancing means replacing your current student loan(s) with a new loan with a lower interest rate. When you refinance more than one student loan, you can also consolidate them into one loan, meaning one monthly payment.

Here is a list of some of the best refinance rates for student loans:

Have Your Loans Forgiven

Like paying off your student loans, being granted student loan forgiveness closes out your loan account. So, if you have any late or missed payments associated with the account, it’ll be wiped from your credit report once the debt is forgiven.

That said, student loan forgiveness is only an option if you have federal student loans. However, depending on the type of federal student loans you have, you may need to pursue a consolidation loan first to be eligible for forgiveness. Private student loans, on the other hand, are ineligible for student loan forgiveness programs.

How Long Do Student Loans Stay on Your Credit Report?

Late student loan payments will remain on your credit report for seven years. If the loan goes into default as a result, however, the timer won’t go back to zero. The seven year period will be based on the date of the first missed payment, not the last.

Beware of Credit Repair Scams

You may see advertisements, messages, and emails from individuals or services claiming to have the power to fix your credit score. However, the vast majority of these are scams.

Some red flags to look out for include:

Asking you to pay before providing the service. Under the federal Credit Repair Organization Act, it is illegal for credit repair companies to charge you until they’ve provided the services they’ve promised.

Saying they can remove any information, including accurate information from your credit report. You cannot remove accurate information from your credit report.

Using salesy language such as “urgent” or “guaranteed.” Even with a reliable credit repair company, there is no guarantee the error disputed will be resolved.

Refusing to explain your rights. Under the Fair Credit Reporting Act, it is your legal right to dispute credit report errors on your own, free of charge. While you can utilize a credit repair service, you don’t need to hire someone to handle it for you. If an organization says only they can take care of a dispute, do not work with them.

Applying pressure to make a decision about using the service. When you choose to file the dispute is up to you. There is no timeline in which you need to make the decision.

Telling you not to contact credit card companies, lenders, loan servicers, or credit reporting agencies. It is within your right to contact any of these entities with questions regarding your credit.

Do not share any personal information regarding your student loans or your credit with anyone unless you are certain they belong to a reputable credit repair company.

Final Thoughts From the Nest

While you can’t remove just any information from your credit report, you can dispute inaccuracies associated with your student loans. Oftentimes, these mistakes are simply oversights or glitches in the system and can be promptly corrected once your lender or loan servicer is made aware.

If you aren’t sure whether something on your credit report is in fact an error, reach out to your lender or loan servicer anyways. It can’t hurt to inquire and file a dispute, but it could potentially save your score.

The short answer is… parents should start saving for college as soon as possible.

Nonetheless, figuring out how much to save for college and when to start can be confusing. The answers aren’t always crystal clear. However, saving for college is a massive undertaking that requires a strategic savings plan to reach your goals. If you’re working on your savings plan, you’re in the right place.

Here’s what parents should know about when to start saving for college, including the most important factor: beginning early.

Start Saving Early

The cost of college is rising every year. In fact, education expenses in the US have risen by over 180% since 1980. This makes an early savings plan not only useful but necessary.

Saving early gives you more time to contribute money and take advantage of compound interest — provided you invest the money. If you wait until the last minute to start saving for college, you’ll need to contribute a lot more. Likewise, the earlier you start investing college savings, the more time your money has to grow with interest.

>> MORE: Best parent loans for college

Make Sure You’re Supported First

As enticing as it is to set aside money to grow, it’s vital that you are already financially secure.

Get an Emergency Fund in Place

Before looking into the future, you should always have an emergency fund, if possible. An emergency fund is intended for dire situations such as a natural disaster, unexpected job loss, or medical bills. In general, your emergency fund should equate to three to six months’ worth of your salary. 

Lower High-Interest Debt

In addition to that, you should prioritize lowering any existing high-interest debts. While saving for college is important, the interest you’ll have to pay on debts might be more than what you can save.

That said, there are a few exceptions. For example, if you only have low-interest debt, it may be better to invest the money for college expenses. However, this takes serious time, planning and requires higher risk tolerances so it may not be suitable for all.

Best Savings Plans for College

The current financial system provides a number of ways to start save for college. There are many instruments that are unique in their own regard, so understanding which to choose can be confusing. 

>> MORE: Best student loans for parents

529 Plan

A 529 Plan offers federal and state tax benefits when used for educational expenses. A 529 Plan has restricted investment options. However, it’s a great choice because it can be used as a tax shelter while your money grows. In addition, these plans are considered parent assets, which means you don’t need to report them on the FAFSA.

Mutual Funds

Mutual funds create a diversified portfolio of individual investments —think bonds, stocks, or other securities. Unlike a 529 Plan, investing college savings in a mutual fund provides you with a bit more flexibility in terms of what you can invest in. That said, they are run by portfolio managers, who will usually charge a fee for their service. In addition, mutual funds are subject to annual income tax, and any money transferred to your child is viewed as income on the FAFSA.

Custodial Account

Custodial accounts are brokerage accounts that you open on behalf of your child and then subsequently transfer to them once they reach 18, 21, or 25 years of age. Like mutual funds, the FAFSA considers custodial accounts as student assets, which can reduce your child’s financial aid eligibility. 

Savings Bonds

Saving bonds are securities that are backed by the U.S. Government. They are one of the most risk-averse investments and safest options as you are guaranteed to get money back. Due to this guarantee, the rate of return for saving bonds is usually quite low, meaning that in periods of high inflation and higher costs, you may still end up losing money as the value of your dollar diminishes.

Some benefits of these vehicles include being federally tax-deferred and state-tax free. That said, the maximum amount you can invest is $10,000 on your own and $20,000 as a married couple per year. 

Roth IRA

With only 37% of the nation’s population using this type of account, Roth IRAs are underutilized but can provide a great investment strategy.

A Roth IRA is an investment account where you can earn tax-free interest on your contributions. While earnings are intended to be withdrawn once you are 59 years old, you can withdraw contributions prior to then with no taxes or penalties. There are no obligations or restrictions to when you withdraw and the FAFSA does not consider them assets. However, there are some downsides like the inability to invest more than $6,000 per year. 

Regardless, all these options are great ways to start saving for college and growing your money to help with future college expenses. But what if you’re getting a late start on saving? Perhaps you weren’t able to invest right away? There are still many options available and the same principle applies, start as soon as you can.

>> MORE: Compare student loan rates for parents

What to Do If You’re Getting a Late Start on Saving

If you are starting late on saving for college, it may be smarter to take on less risk as market fluctuations can be a detrimental player to your college savings goal. Perhaps it would be wiser to look into more safe, secure investments or age-based plans. 

If you don’t reach sufficient savings, you should look into the different types of financial aid for college. Additionally, you can use Sparrow to find the best parent student loan rates and compare across multiple lenders in minutes.

Final Words

At the end of the day, saving for college should not put you in financial stress currently or in the future. Preparing a strategy to best manage your money and meet your goals is the best way to enjoy your financial future. Look at all the options available to you, and talk your strategy out with a qualified financial advisor and your loved ones, as these financial decisions have great impact. Once you settle on a plan, don’t stress too much about the short-term and try to focus on the long-term advantages.

The content of this article is not, nor should it be, taken as financial advice. The content of this article is for educational purposes only. For personalized financial advice, please consult a financial or investment advisor.

Graduating college is the beginning of a new chapter in your life. You may be moving out of your parents’ house, landing an exciting new job, or heading to graduate school. Regardless, managing your finances post-graduation is crucial in navigating your new adult life. To help keep your finances in order, consider making a college graduate budget.

A budget is a financial tool designed to help you manage your income and expenses so you can stay on track to reaching your financial goals. Here’s how to create a budget as a college graduate.

How to Create a Budget After Graduating College

Step 1: Get Real About Your Income

Life post-graduation will likely come with a full-time job, often earning you more than the standard part-time college gig. While exciting to have more income to work with, it’s important to understand how much you’ll actually have to spend on a regular basis.

Remember that your salary is the amount you earn before taxes, or your gross income. Your salary also doesn’t factor in other potential deductions, such as your 401k contribution or employer-sponsored health insurance.

For example, let’s say you make $60,000 per year. You decide to contribute 10% of your gross income to your 401k, or around $500 per month. If you live in Missouri, for example, you’d take home $39,911.93 after contributing to your 401k and after tax. This averages out to around $3,325 per month.

Step 2: Determine Your Fixed Expenses

There are a variety of fixed expenses you may incur post-graduation, such as:

1. Living Expenses/Rent
2. Utilities
3. Groceries
4. Student Loan Payments
5. Insurance
6. Transportation/Car Payment
7. Phone Bill
8. Pet Expenses

Fixed expenses are those that remain the same each month. Oftentimes, but not always, they are necessary expenses, as well.

Depending on your lifestyle, your fixed expenses may differ from the list above. For example, if you are living at home rent-free with your parents, your fixed expenses may be:

1. Student Loan Payments: $250
2. Transportation Costs: $100
3. Therapy Appointments: $200
4. Gym Membership: $40

Your fixed expenses will create the baseline for your budget, coming before factoring in any “wants.”

>> MORE: Compare student loan rates

Step 3: Calculate What You Have Left

Now, subtract your fixed monthly expenses from your monthly income. What you have left over will be what you can contribute to your savings goals and nonessential spending.

For example, if you earn $3,325 per month, and have fixed monthly expenses totaling $590, you’d be left with $2,375 for discretionary spending.

Step 4: Determine Your Savings Goals

Before spending your remaining income, map out your savings goals and prioritize contributing toward them. Remember, you may have larger expenses coming up in this phase of life, such as:

1. A down payment on a home
2. Moving out/moving to a new city
3. Furnishing a new home
4. Buying a car
5. A wedding
6. Having children

Set a realistic timeline for each financial goal you have. Then, figure out how much you need to contribute toward each savings goal per month to achieve it. Subtract those figures from your remaining income after factoring in fixed expenses.

>> MORE: How to buy a house with $100K+ student loan debt

Step 5: Think: After Graduating College, What Does a Full Life Look Like to Me?

As a college graduate, for a budget to be successful, it has to support a life you truly enjoy living. While you’ll likely have several necessary expenses to put in your budget, such as rent or student loan payments, it’s important to prioritize “wants” as well.

Think to yourself: What does a full life look like to me? What do I really value that is worth spending money on?

Getting clear on what you enjoy spending on allows you to budget appropriately so you can effectively balance both “needs” and “wants.” It can also help you dodge the pressure to keep up with those around you, or spend on items or experiences you don’t value. For example, if you don’t value spending money on happy hour after work, but your coworkers do, it’s okay to order a less expensive beverage or skip out on the excursion altogether. 

Step 6: Look at Your Spending from Previous Months

To determine how much wiggle room you have to spend on “wants,” look at your spending habits in previous months. Find the average of what you’ve spent in different categories, and use that information to set guidelines for your budget after graduating college.

For example, let’s say you spent $200 on eating out in March, $300 in April, and $150 in May. On average, then, you spend around $216 per month on eating out. If that amount feels reasonable to you, use it to set your limit for that budget category.

This is also a great time to see where you can cut back. If you find yourself overspending in certain categories, be realistic about what that means for your overall budget. For example, if spending $500 per month on entertainment means delaying reaching your financial goals, it may be worthwhile to scale back your spending in that category.

Step 7: Map Out All Your Budget Categories

Once you know what your fixed expenses are, how much you need to contribute to your savings goals, and what you’d like to spend the remainder on, you can set your budget categories.

As a college graduate, some common budget categories are:

1. Rent
2. Gas
3. Insurance
4. Public Transportation
5. Student Loan Payments
6. Car Payment
7. Entertainment
8. Groceries
9. Restaurants
10. Shopping
11. Subscriptions
12. Gym Membership
13. Self Care
14. Medical Expenses
15. Donations/Charity

Pick whichever categories are relevant to you and your lifestyle. Then, assign a spending limit to each category, ensuring that all expenses, including savings goals, add up to your total monthly income.

>> MORE: Student loan refinancing: how to pay off your student debt faster

College Graduate Budget Example

With an income of $3,235 per month, your budget may look something like:

As the month goes, periodically examine your spending. For example, if after one week into the month, you’ve spent $100 of what you budgeted for groceries, you may need to cut back in other categories for the remainder of the month to ensure you can cover grocery expenses going forward.

Likewise, total up your overall spending at the end of the month. This will allow you to see where you may have underspent, allowing you to direct the remaining amount to another expense such as your savings goals.

Bonus Step: Automate Your Budget

If managing your budget manually sounds tedious, consider using a budgeting platform such as YNAB or Mint. Both platforms will allow you to set budget categories, then sync your account with your bank. Then, your expenses will automatically be tracked and categorized, simplifying the process quite a bit.

Managing your finances can be complicated, especially if it’s your first time giving it a go. So, as you begin utilizing your budget, remember to be gentle with yourself. 

Sparrow aims to give you the tools and confidence you need to improve your finances. Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products.

The content displayed on this page is intended for educational purposes only and should not be taken as financial advice. Please consult a professional for personalized financial advice.

If you’re concerned about your student loan debt affecting your chances of buying a home, you’re not alone. In fact, over a quarter of student debt holders say their debt has impacted their decision or their ability to purchase a home. Here’s what you need to know about buying a house with $100k student loan debt:

The good news: around 40% of first-time homebuyers have student loan debt. So, while it may make qualifying for a mortgage loan a bit more challenging, buying a house with student loan debt is completely possible.

Can I Buy a House with Student Loan Debt?

When people say, “buying a house with student loan debt is hard,” what they’re often referring to is the mortgage loan process. Like private student loans, you must be a creditworthy borrower to secure a mortgage loan with a competitive interest rate.

Unfortunately, student debt can impact how creditworthy you appear to a lender. That said, there are several things you can do to appear more creditworthy, and thus improve your chances of getting approved for a mortgage loan.

Work on Improving Your Credit Score

One of the most important factors in securing a mortgage loan is your credit score. Simply put, lenders want to be confident you’re a trustworthy borrower prior to lending to you. So, by examining your credit score, they can typically get an idea of whether or not you are.

>> MORE: What credit score is needed for a student loan?

Luckily for you, student loan debt typically won’t drag down your credit score too much, unless you’ve been missing payments.

If there are other aspects of your financial background that are bringing your credit score down, however, taking the time to improve it can help you qualify for a competitive rate.

Here are a few things you can do to improve your credit score:

• Pay all your bills on time. Payment history makes up roughly 35% of your credit score. So, as you can imagine, late payments can take a serious toll on your score. Therefore, if you’re struggling to pay your credit card bill on time, consider opting in to automatic payments. Rather than making your payments manually, your credit card company will pull the payment directly from your checking account. This will ensure payments are always made on time.
• Limit new credit accounts. Applying for a new line of credit will result in a hard inquiry, which will temporarily hurt your credit score. Therefore, if you plan on applying for a mortgage loan in the near future, hold off on applying for any other new lines of credit.
• Keep old credit card accounts open. Credit history is another important factor in determining your credit score. Each time you open a new line of credit, it adds to the length of your credit history. If you have a credit card you opened a while ago that you no longer use, keep it open. Closing it will shorten the length of your credit history which, in turn, can reduce your overall credit score.
• Check your credit report. Several credit card companies, banks, and other financial institutions offer free credit reports. If yours don’t, consider using the Annual Credit Report to get a free copy of yours. By viewing your full credit report, you can check for unknown errors, fraud, or potential identity theft that could be impacting your score. 

Lower Your Debt-to-Income Ratio

When mortgage lenders evaluate you as a potential borrower, they’ll examine your debt-to-income ratio (DTI). Your debt-to-income ratio compares how much you owe to how much you earn each month. Your DTI is used to assess your ability to make a mortgage payment on top of other debts.

There are two types of debt-to-income ratios to be aware of: front-end ratio and back end-ratio.

A front-end ratio is all of your housing expenses divided by your pre-tax income. When applying for a mortgage loan, lenders will consider your future monthly mortgage payment, including expenses such as property taxes and homeowners insurance, to calculate your housing expenses.

For example, if you make $8,000 pre-tax per month, and your future housing expenses are $3,000 per month, your front-end debt-to-income ratio would be 37.5%.

[3000 ÷ 8000 = 0.375 → 37.5%]

A back-end ratio is all of your monthly debt payments divided by your pre-tax income. In addition to the monthly housing-related expenses, a back-end debt-to-income ratio will factor in debt payments such as student loans, credit cards, and auto loans.

For example, if you make $8,000 pre-tax per month, and your future housing expenses are $3,000 per month, but you have an additional $250 student loan payment and $400 auto loan payment, your back-end debt-to-income ratio would be 45.6%.

[3650 ÷ 8000 = 0.456 → 45.6%]

When applying for a mortgage loan, lenders will pay closer attention to your back-end ratio as it provides a more holistic view of monthly expenses.

What Debt-to-Income Ratio is Needed to Buy a House?

Many mortgage lenders follow what is referred to as the “28/36 rule,” also called the “28/36 qualifying ratio.” The rule suggests that you should spend no more than 28% of your monthly gross income on housing expenses, and no more than 36% on all of your debt expenses, including debt like student loans and credit cards.

That means your front-end ratio should be no more than 28%, and your back-end ratio should be no more than 36%. However, some mortgage lenders work with borrowers with higher DTIs. In fact, Rocket Mortgage recommends aiming for a DTI of 50% or less to qualify for a conventional mortgage loan. That said, the lower your DTI, the better.

Tips to Lower Your Debt-to-Income Ratio

If you have a high student loan balance relative to your income, or vice versa, consider increasing your income or refinancing your student loan.

>> MORE: Should I Refinance my Student Loan.

Use Sparrow to help you find the best refinance rates. The Sparrow application shows you personalized rates from our 17+ partnering lenders. You can then compare refinance rates side-by-side, helping you narrow down your options to see which is best for you. 

By increasing your income, say, through taking on a side hustle or asking for a raise, you can reduce your overall debt-to-income ratio.

In this example, increasing your income by just $1,000 per month would lower your front-end ratio by around 4 percentage points and your back-end ratio by around 5 percentage points.

If increasing your income isn’t possible at this time, consider refinancing your student loan debt. Refinancing to a longer repayment period will decrease your monthly payment. Accordingly, it will lower your total monthly debt payments. In doing so, your debt-to-income ratio will drop.

For example, let’s say you were able to decrease your $250 monthly student loan payment to $100, making your overall monthly debt expenses $500 instead of $650. Even with the same income, your back-end DTI would drop around 2 percentage points.

Now, if you are able to increase your income and reduce your monthly debt payments, you may see a greater drop in your DTI. In this example, you would drop nearly 7 percentage points by increasing your income by $1,000 per month and reducing your debt payments by $150 per month.

It’s important to note that lenders care far more about your debt-to-income ratio than they do your total debt expenses. So, even if you have $100k in student loan debt, if your overall DTI is still within the ideal range, you’re in the green.

See What You Prequalify For

Prequalifying with a mortgage lender can help you see what you may qualify for, and thus, where you need to make adjustments to qualify for your desired mortgage loan. For example, if you’re only approved for a fraction of the amount you expected to qualify for, you can ask the lender how you could improve your application to prequalify for higher.

>> MORE: What student loan rates do I prequalify for?

When seeking a preapproval for a home, remember to consider the following:

• Lenders will evaluate your entire short-term financial history. If questioned, you will need to be able to explain where all of your income has come from.
• If you’re self-employed, your income will be under greater scrutiny. Accordingly, you may need to provide additional documents for income verification.

Once you have a preapproval, sellers are also more likely to take you seriously as a potential homebuyer. This can increase the likelihood of your offers being accepted.

Explore Down Payment Assistance Options

If your student debt is preventing you from having enough to save for a down payment, consider down payment assistance programs. These programs will help you cover the cost of your down payment if you are a first-time homebuyer. 

There are a few types of down payment assistance programs to look out for:

• Grants. Grants are considered a gift, meaning you never have to pay it back. (Yup! Free money.) 
• Forgivable loans. Similar to some federal student loan forgiveness programs, some mortgage loans are forgivable after remaining in the home for a set number of years. 
• Matched savings programs. Some banks, government agencies, and community organizations offer matched savings programs, allowing buyers to have their down payment savings matched. For example, if a buyer deposited $10,000 into an account, the partnering organization would add another $10,000 in to match it. Then, you can use that $20,000 toward your down payment.

Consider Your Budget

Before adding a mortgage loan into the mix, make sure you have a deep understanding of your current expenses. If you aren’t already tracking your spending, consider doing so.

You may find that you spend unnecessarily in certain areas. Therefore, by cutting those areas back even just a little bit, you could find more money to put toward paying off your debt or toward a down payment.

Be Willing to Make Compromises

If buying a house despite having student loan debt is a top priority for you, consider holding off on other “wants” for a bit. For example, rather than upgrading your cell phone, hold onto your current phone for another year, and direct what you would’ve spent on a phone toward paying off your student loan debt.

Likewise, if you don’t qualify for as much of a mortgage loan as you expected due to your debt, consider lowering your expectations for your first home. While a move-in ready home in the perfect location may be ideal, it may not be in budget. Be open to compromising on certain elements of the home to find something you like that also suits your current financial situation.

Final Thoughts from the Nest

Buying a house with student loan debt is entirely possible. However, there may be additional hurdles to overcome along the way, especially if you have a high loan balance in comparison to your income.

Be sure to calculate your debt-to-income ratio prior to beginning the homebuying process. The earlier you understand your broader financial situation, the longer you’ll have to make adjustments before applying for a mortgage loan.

If you do opt to refinance your student loan debt as a tactic for reducing your monthly debt expenses, use Sparrow. By completing the Sparrow application, you’ll be able to see what refinance loans you qualify for and at what rates. Then, you can compare your loan options side-by-side to be sure you’re picking the best one.

Do you love to fly, see the world, and travel for free? If yes, being a pilot might be the job for you, and it might be the perfect time to become one. 

According to the U.S. Bureau of Labor Statistics, the job outlook for pilots is promising. Commercial pilot jobs and airline employment expect a 13% job growth rate through 2030, which is higher than average. Plus, in 2021, the median pay for airline and commercial pilots was $134,630.

Typically, you will need a bachelor’s degree, certifications from the Federal Aviation Administration, flight training, as well as flight experience and hours to become a certified airline or commercial pilot. 

In this article, we’ll tell you how to become a pilot and fund your career. 

How to Become A Pilot in Six Steps

As with any other job, you will need to put in work, time, and money to become a pilot. It is possible to work as a commercial pilot or a regional airline pilot without a four-year undergraduate degree. However, most major airlines require their pilots to have four-year degrees, preferably in aviation, aeronautical science, or aerospace engineering.

After pursuing your bachelor’s degree, here are six simplified steps to become a pilot. 

Step One: Pick a Flight School

There are 1,000+ pilot schools in the United States that you can pick from. Before beginning your search, determine your aviation goals and plans.

Do you want to become a pilot, or fly for leisure? What is your budget, and how much time do you have?

After having an idea for your aviation plan, begin looking into flight schools. You’ll want to ask the following questions when choosing a flight school:

• How is the cost of flight school structured? Does the school offer any financial aid?
• Have former students of the flight school established successful careers as pilots? Where are they now?
• What kind of training, mentoring, and career support services does the flight school provide?
• Does the flight school have a good reputation? Is it accredited?
• Is it a Part 61 (flexible, customized, often pricier flight school) or a Part 141 (rigid, structured, cost-effective flight school)? Does it align with your goals and wants?
• Is the flight school far or close to home? Does location matter?

Step Two: Apply for the Necessary FAA Certificates

To become a pilot, you must apply and be approved for certificates offered by the Federal Aviation Administration (FAA).

Medical Certificate

You must meet basic health requirements to become a pilot. You’ll need to undergo a physical examination by a certified doctor and submit the documentation to the Federal Aviation Administration.

There are three types of medical examinations that you can undergo: the first-class medical examination, the second-class medical examination, and the third-class medical examination. 

Student Pilot Certificate

After obtaining your medical certificate, you’ll be able to apply for your student pilot certificate through the Federal Aviation Administration’s Integrated Airman Certification and Rating Application. 

You will need this certification in order to fly by yourself during your training, and it’s a step towards obtaining full licensure as a pilot. 

Step Three: Start Flight Training

Start taking flight training lessons at the pilot school of your choice. You need a minimum of 250 hours of flying to earn your license, and your flight hours can be logged through your flight school, flight instructor, etc. 

Step Four: Pass the FAA Private Pilot Knowledge Test

Now that you’ve begun your pilot training lessons, you will have to take the Federal Aviation Administration Private Pilot Knowledge Test. This exam will be administered by an FAA-certified instructor either in-person or online.

To be able to take the Private Pilot Knowledge Exam, you will need an endorsement from your instructor that proves you’ve had the appropriate training and study to take the exam. 

Step Five: Pass the Private Pilot Practical Exam

The private pilot practical exam, also known as the “check ride,” is the final evaluation that you must pass to receive your licensure as a private pilot.

The exam consists of two parts: an oral exam and a flight evaluation. Once you pass the check ride, you will receive your license as a private pilot.

FAQs About Becoming a Pilot

1. How Long Does it Take to Become a Pilot?

It takes anywhere from two to three months to earn your private pilot license and become a pilot. 

However, it will take you longer to become a commercial or airline pilot. You’ll have many flight hours to fulfill, tests to take, and certifications to receive beyond your basic training. 

After earning a student license and private license, you’ll have to obtain your instrument rating, commercial pilot license, flight instructor license, multi-engine rating, and airline transport pilot license (ATPL). To qualify for an airline transport pilot license, you must be a minimum of 23 years old, have at least 1,500 flying hours, have a first-class medical certificate, and fulfill other requirements. 

2. How Much Do Pilots Earn?

In 2022, the average salary for an airline pilot was $144,101, but it can range anywhere from $56,000 to $700,000 in the United States. Much of a pilot’s salary depends on years of experience, location, employer, and other factors.

3. How Much Does it Cost to Become a Pilot?

According to the ATP Flight School, it costs $91,995 to become a pilot without any previous experience. For individuals with a private pilot certificate, becoming a pilot costs around $71,995.

For private pilot schools, the cost of tuition usually ranges from $60,000-$80,000. However, the cost of pilot school differs from program to program, so be sure to thoroughly do your research so that you’re getting the most bang for your buck. 

How to Pay for Pilot Education Programs

To cover the cost of pilot education programs, many aspiring pilots turn to private student lenders rather than paying out of pocket.

As a student attending a non-traditional program, you will need a lender that works with career training schools, including pilot schools. Consider the following lenders, all of which work with career training schools:

1. Arkansas Student Loan Authority
2. Brazos
3. Earnest
4. Edly Income-Based Repayment (IBR) Student Loan
5. EDvestinU
6. Funding U
7. INvestED
8. SoFi

Closing Thoughts From the Nest

Becoming a pilot requires a significant investment in time, money, and effort. At Sparrow, we want to help you find the best option available for you to afford the cost of pilot school. If you submit a free application with Sparrow, you can compare private lenders that work with career training programs to find the best student loan for you.

Sparrow’s goal is to give you the tools and confidence you need to improve your finances. Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products.

As a student applying to college, you should be aware of the options that you have for applying, such as Early Action, Early Decision, and Regular Decision. Knowing how you want to apply to college can save you a lot of time and assure that you are making the best decision for yourself. Although you may be wondering, what’s the difference between early action vs early decision?

Early Action and Early Decision are commonly confused methods of applying to college because of the similarities in the programs. However, there are key differences between Early Action and Early Decision that every student applying to college should know. 

Early Action vs Early Decision: What’s the Difference?

For both Early Action (EA) and Early Decision (ED), you apply to the college of your choice by an earlier deadline and, in turn, find out if you were accepted, rejected, or waitlisted earlier. 

The key difference between applying Early Action vs Early Decision is that Early Decision is a binding decision, meaning you must attend the school if you are accepted and withdraw any other submitted applications. Early Action, on the other hand, is a non-binding decision. 

>> MORE: How to pay for college: compare student loan rates

Early Action

As outlined above, applying Early Action means that you submit your college application to the school of your choice at an earlier deadline and receive your admissions results sooner. You can apply Early Action to as many schools as you want, as long as the schools offer Early Action.

Early Action is a non-binding agreement, meaning that you are not obligated to accept the admission offers of the schools that you get into via Early Action.

Popular Schools that Offer Early Action:

Early Action is offered by a wide variety of schools. Here are a few popular schools that offer it:

• Northeastern University
• Princeton University (single-choice Early Action, meaning that you cannot apply early to any other school though the decision is non-binding)
• Georgetown University
• Massachusetts Institute of Technology

>> MORE: Compare student loan rates to help you pay for college

Early Decision

Early Decision is a binding agreement, meaning that if you are accepted into the school you applied to ED, you are obligated to attend the school and withdraw any other applications. Just like Early Action, you apply Early Decision in an earlier timeframe and receive your acceptance decisions sooner.

You may only apply Early Decision to one school. 

Popular Schools that Offer Early Decision

Early Decision is offered at many schools including, but not limited to:

• Columbia University
• Washington University
• Boston University
• Brown University
• Cornell University

Things to Ask Yourself When Applying Early Decision

Again, applying Early Decision is binding, so it’s important to think over the decision thoroughly before moving forward. Before applying Early Decision, ask yourself the following questions:

• Does the school offer the option to apply Early Decision?
• Is this school your top, dream school that you would attend even if you were accepted anywhere else?
• Are you eligible to receive an affordable financial aid package? Does the school offer scholarships that can help you defray the cost of tuition?
• Is the location of this school somewhere you can spend the next four years of your life?
• Have you thoroughly researched this school in terms of geography, social scene, academics, extracurriculars, etc.?

>> MORE: The best college scholarship sites you need to know about

Early Action vs Early Decision: Which is Better?

Between Early Action vs Early Decision, there is no option that is necessarily “better,” but there may be an option that is more suitable for you. Early Action is more suited for students who don’t have a definite “dream school” in mind and want to keep their options open. Early Decision is for students who have a dream school that they would like to attend, without any reservations or hesitations. 

However, before you decide between applying Early Action and Early Decision, you’ll want to assess whether or not applying early is a strategic, feasible option for you.

>> MORE: How to pay for college: financial aid options

Things to Consider When Applying Early

If you want to apply early, you’ll want to have the following things:

• Sufficient time to write a killer application that highlights the best qualities about yourself through your Personal Statement essay, school-specific essays, extracurricular activities, etc. If the Early Action/Decision deadline seems too soon for you to put together a competitive application, consider applying Regular Decision.
• Test Scores/GPA that match or exceed the average stats of the school that you want to apply early for. You’ll want to be a competitive applicant if you are applying early, particularly for Early Decision. If you are taking the SAT/ACT after the deadline for Early Action/Decision or want to boost your GPA before submitting your transcript, consider applying Regular Decision.

I Want to Apply Early to College. What Do I Do Next?

Now that you’ve determined whether or not you want to apply early to college, it’s time to decide whether or not you should apply Early Action vs Early Decision for the colleges on your college list.

You should only apply Early Decision to a school you are 100% confident of being happy with attending. If there is no school that you feel this way about, apply Early Action. Keep in mind that you can apply Early Action and Early Decision – however, if you are accepted into the school that you applied Early Decision for, any other acceptances will have to be rejected.

>> MORE: What are the different types of financial aid to pay for college?

Closing Thoughts From the Nest

We hope that this article has helped you learn the difference between Early Action vs Early Decision and guided your decisions when applying to college.

As general advice, be sure to keep track of every college application deadline that you have and whether you are applying early or on the regular timeline. Staying organized and on top of your work is the key to success!

Once you’ve applied, you should start thinking about how to pay for college. To get the process started, compare student loan rates with Sparrow today. By completing the Sparrow application, you’ll be able to see which student loans you qualify for and at what rates. Then, you can compare your loan options side-by-side to be sure you’re picking the best one.

The average borrower takes 20 years to repay their student loan debt, costing them around $26,000 in interest alone. While it may be tempting to throw all your extra cash toward your student debt to relieve that burden faster, sacrificing investing for retirement to do so may not be the best approach. That said, the decision to pay off student loans or invest isn’t that simple.

If you’re frozen with indecision, here are a few things to consider.

Should I Pay Off Student Loans or Invest?

As with any personal finance decision, deciding whether to pay off student loans or invest is personal. Which route is more advantageous for you will depend on your unique situation.

Generally speaking, however, there are a few main factors to consider:

What Interest Rates Your Student Loans Have

It’s important to consider the interest rate on your student loan(s) in comparison to what you believe the stock market will return. For example, the average student loan interest rate, across all types of student loans, is 5.8%. However, the average return of the S&P 500 is around 10%.

Most investing experts agree that the earlier you invest, the better. This is because of the power of compounding interest: the longer you allow your investments to grow, the greater return you will receive. But by the same token, the longer you take to pay off your student loan debt, the more interest will accrue.

If you have a low-interest student loan, investing may generate a greater return than the amount of interest that accrues on your student loan. However, if you have a high-interest student loan, the interest costs may far outweigh the 10% return from investing.

>> MORE: What is the average student loan interest rate?

What Type of Student Loans You Have

Federal student loans have the potential to be forgiven. Each student loan forgiveness program will have its own unique set of requirements. Nonetheless, many will require you to make a specific number of minimum monthly payments to qualify. After making the required payments, your remaining student loan balance will be forgiven.

Given that your debt will be forgiven upon making just the minimum payments, there is little benefit to making surplus payments. In this case, investing would make more sense than directing a surplus payment toward your student debt.

Private student loans, on the other hand, don’t have the potential to be forgiven. So, depending on your interest rate and loan balance, surplus payments may make more sense in comparison to investing.

>> MORE: Compare private student loan rates

Your Debt’s Impact on Your Mental Health

If your student loan debt is causing you an unmanageable amount of angst, it may make more sense to focus your attention on throwing all your spare cash toward it. Even if you recognize that the returns from investing will far outweigh the cost of your student loan interest, it’s okay to prioritize your mental health and pay off your student loan debt first.

When to Prioritize Paying Off Student Loans Over Investing

As a guideline, there are a few circumstances in which paying off your student loans before investing makes more sense:

1. If your student loan interest rate is over 6-7% and you have a high loan balance. The larger your loan balance, the more interest you’re likely to accrue. For example, if you owe $10,000 at a 6% interest rate, you would pay $17,194 total over the course of a 20-year repayment term. However, if you owe $100,000 at a 6% interest rate, you would pay $171,943 total over the course of a 20-year repayment term. Notice how the higher outstanding loan balance results in significantly higher interest costs.
2. If you are concerned about being unable to pay your student loan payments in the future. If you opt to prioritize investing, but later experience an inability to make your student loan payments, it may be a scramble to come up with the cash. While you can withdraw money from your investment account, you will likely face a penalty to do so.
   
   If you predict a circumstance that will impact your ability to make your student loan payments in the future, it may make more sense to prioritize paying them off before investing. Directing surplus payments toward your student debt will lower your minimum monthly payment, which may make your future payments more manageable.
3. If your student loan debt is negatively impacting your mental health. If paying off your student loans will provide you with an immense amount of peace, paying them off before investing may make the most sense.
4. If you simply don’t want to have any outstanding debt on your record. Paying off your student loans would not only remove the outstanding debt from your record, but it could improve your credit score as your debt-to-income ratio shifts. 

When to Prioritize Investing Over Paying Off Student Loans

Here are a few instances in which investing before paying off your student loans makes more sense:

1. If your student loan interest rate is less than 5% and you expect to return the average 10% on your investments. Even with interest costs, the average rate of return on investments will likely outperform most low-interest student loans.
2. If your employer offers a 401k match and you are fully vested, meaning you are entitled to the full amount in your 401k including your employer’s match. If you currently contribute to a 401k with an employer match, you may be required to work for the company for a specific amount of time to be entitled to 100% of that employer match. If you decide to leave the company prior to being fully vested, you may only be entitled to a portion of your employer’s contributions.
3. If you believe the return on your investments will far outweigh the cost of the student loan. In some instances, investing will far outperform the interest costs associated with making minimum monthly payments on your student loans. In those instances, it may make more sense to focus on investing over paying off your student loans.

Do the Math to See Which Option is Better

If you still aren’t leaning towards one option over the other, do the math to give yourself a concrete answer. Mathematically, one option will outperform the other, which can give you a clearer picture of what to do.

Let’s say you’re in an “either/or” situation — you either want to put an extra $500 on your student loan each month or invest it. Here’s how this would play out based on the average student loan debt and investing data.

If you opted to direct the $500 a month toward your student debt, you could pay off your loan in 5 years instead of the full repayment term of 20 years. This would save you $20,411 over the life of the loan. Then, let’s say that after paying off your student loans, you began investing that $500 a month. After 15 years, you would have earned $110,810.61 in interest. In total, you “earn” $131,221.61 between both the savings on interest and the interest that accrued on your investments.

Now, if you chose to pay only the minimum monthly payment on your student loans and invest that $500 a month instead, it would take you the entire 20-year repayment term to pay back your student loans. However, you would have earned $241,993.36 in interest on your investments. Even after considering the additional $20,411 cost of making only the minimum monthly payments on your student loans, you still score a net earning of $220,933.36.

In this case, prioritizing investing over paying off your student loans makes mathematical sense. To calculate whether it makes sense for your specific situation, utilize investment calculators and student loan repayment calculators.

Create a Balanced Approach Between Debt Payoff and Investing

The examples we’ve discussed illustrate an “either/or” approach. However, it isn’t necessary to be successful in paying off your student loans OR investing. In fact, creating a balanced approach may work best for you.

If focusing solely on one leaves you anxious about your progress in regards to the other, find a middle ground. For example, in the case of having an extra $500 each month, it’s okay to split up your payments. Directing half towards your debt and half towards your investments isn’t a bad idea if it gives you peace of mind.

FAQs About Paying Off Student Loans vs Investing

The decision of whether to pay off student loans or invest may feel difficult. It’s normal to still have questions. Here are a few of the most common ones:

Is there a downside to paying off student loans early?

When borrowers ask this question, they’re often concerned about facing a prepayment penalty. A prepayment penalty is a fee charged when a borrower pays off their entire loan balance earlier than scheduled. While some lenders may charge a prepayment penalty, student loan lenders cannot.

With that said, the only notable downside to paying off your student loans early is that you may experience a temporary drop in your credit score. By paying off your student loans, you are closing an active line of credit. By doing so, the positive repayment history associated with the account will no longer be factored into your credit score.

Should I use all my savings to pay off my student loans?

While it may be tempting to use your entire life’s savings to wipe out your student loan debt, it isn’t the best approach. Before even considering investing or putting a surplus payment on your student loans, make sure you have a fully funded emergency savings of at least 3 to 6 months of expenses.

However, if you have a fully funded emergency savings, it may make sense to use the remaining balance to pay off your student loans.

What else can I do to pay off my student loans faster?

If it’s not feasible to make a surplus payment on your student loans, here are some ways to pay off your student loans faster:

Consider refinancing. In a simple sense, refinancing your student loan allows you to swap your current student loan(s) for one with a lower interest rate or more favorable terms. Then, you can save money over the life of the loan and expedite the process of getting your balance to zero.

>> MORE: Compare the best student loan refinance rates:

Opt into automatic payments. Many private student loan lenders offer a 0.25% interest rate discount to borrowers who opt in to automatic payments. While a small deduction, it can make a significant difference depending on your current interest rate and outstanding loan balance.

Cut back on expenses. If you don’t already track your spending, consider doing so. By understanding where your money goes, you may find that you’re able to cut back expenses in certain areas. Then, you can re-direct that money toward loan payments.

Pick up a side hustle. The average side hustle generates between $507 and $746 per month, according to USA Today. If you have the capacity to take on a side gig, the additional income could cut down your repayment period.

Final Thoughts from the Nest

When it comes to the decision of whether to pay off student loans or invest, there is no one-size-fits-all solution. Before making a decision, take the time to understand what makes most sense for your unique financial situation. If you still feel unsure, consider consulting a financial or investment advisor for personalized advice.

The content of this article is not, nor should it be, taken as financial advice. The content of this article is for educational purposes only. For personalized financial advice, please consult a financial or investment advisor.

The average 4-year in-state college degree will run you nearly $25,000 per year, or over $100,000 for the entire degree. If you’re borrowing student loans to cover this, it’ll likely cost you even more once interest is factored in.

Having a job while in school can not only help you manage your college expenses but help you chip away at your student loan debt before you even graduate.

Here are the 12 best jobs for college students to start paying off your student debt.

Best On Campus Jobs for College Students

On-campus jobs are ideal in college as you won’t have a commute, you can work with other people your age, and they tend to be more flexible and understanding of a college student’s busy schedule. 

You may find securing an on-campus job to be easier as well, as many college programs and offices are run primarily by student workers.

Fitness Instructor

If you enjoy working out, being a fitness instructor at the campus recreation center is a perfect job for you. There are often a wide variety of fitness classes you can teach such as spin, aerobics, and barre, so you’re bound to find a class you enjoy teaching.

The average entry-level fitness instructor makes around $19 per hour, which is higher than most traditional college jobs.

Resident Assistant

Resident assistants (RAs) are an essential part of living on campus. They help maintain the dorms, support students in various ways, and help uphold campus policy.

The exact terms of compensation will vary from school to school, but oftentimes, being an RA gets you both free room and board and a stipend. 

At the University of Connecticut, for example, RAs receive a housing waiver plus a stipend of $4,510 for the academic year, paid out biweekly. While the housing waiver doesn’t give you cash in your pocket, it does result in significant savings overall.

Tutor

If you tend to excel in an area of study, putting your knowledge to use as a tutor could score you some serious cash, around $18 per hour to be exact. While some campuses may have specific tutoring centers you can apply to, you can also offer tutoring services privately. 

Rideshare Driver

If you have a car on campus, driving for a rideshare service such as Uber or Lyft may be a perfect fit for you. With the ability to pick your own hours, being a rideshare driver is perfect if you’re busy or have a schedule that changes frequently. Plus, college students are always in need of a ride, especially if your campus is big or spreads throughout a city.

The average rideshare driver makes around $15 per hour, but this rate can vary significantly based on tips and location.

Best Off-Campus Jobs for College Students

The best jobs for college students aren’t always on campus. If you’re itching to work outside the campus atmosphere, there are a variety of off-campus jobs you may enjoy. 

Babysitter

If you love working with kids, consider being a babysitter for local families. To connect with families looking for babysitters, search for “[Town] Babysitting Group” on Facebook, then promote your services within the group. 

The average hourly rate for babysitting is around $11 per hour, however, it can range significantly based on the number of children you’re caring for, their age(s), and any special requests the parent(s) may have. For example, picking up the children from school, bringing them to practice, or making them dinner will often result in a higher hourly rate.

Dog Walker/Pet Sitter

If kids aren’t your thing but dogs are, dog walking and pet sitting will be right up your alley. Apps like Rover are designed to connect pet owners with dog walkers and sitters, making it an easy gig to pick up when you have free time. Plus, the average dog walker makes around $15 per hour.

Food Service

Waiting tables at a local restaurant may sound a bit less fun than playing with puppies, but it can be fairly lucrative. During peak seasons where more families are visiting campus — open house season, the end of semesters when parents are coming to pick up their kids, etc. — you can rack up quite a bit of cash. 

The average food service worker makes $13.91 per hour, but at some chain restaurants such as Chili’s, you can make upwards of $22 per hour.

Ocean Lifeguard

Lifeguards, in general, are paid fairly well. However, if your school is close to an ocean, you may want to consider applying for an ocean lifeguard role. Ocean lifeguards tend to make more than pool lifeguards, bringing in around $16 per hour. While you would have to obtain a lifeguard certification, it’s the perfect gig if you enjoy sitting in the sun and being by the water.

Best Online Jobs for College Students

If showing up to work in person isn’t your jam, we can’t blame you. Working from your dorm in your pajamas does sound pretty sweet, and there’s several jobs that will allow you to do just that.

Freelance Writer

As a freelancer, you’re essentially your own business. You get to choose what services you offer and at what rate, making it a highly flexible and fairly lucrative job. In fact, the average freelance writer makes around $23 per hour as a base rate.

Online English Teacher

If you enjoy working with children but don’t want to be physically in person, consider teaching English as a Second Language (ESL) online. Most ESL tutoring websites will set you up with a proper curriculum and provide guidance around how to actually teach English. Plus, the average ESL teacher makes $23 per hour, which is a fairly high rate in comparison to other college jobs.

Social Media Manager

If 95% of your screen time is spent scrolling through Tik Tok, being a social media manager is the gig for you. Social media managers make around $22 per hour when just starting out and even more with experience. 

Interpreter/Translator

If you know more than one language, interpreting or translating is for you. Beginner interpreters can make around $23 per hour, but it can range depending on the languages you know and the organizations you work with.

College Jobs and Their Impact On Your Student Debt

It might be challenging to imagine how a $13 per hour college job could actually make a dent in your student debt, so let’s illustrate it.

Let’s say you worked 5 hours per week at $13 an hour. Before taxes, you’d make $260 per month. For simplicity’s sake, we’ll use your pre-tax income to estimate how much you’d save.

Now, let’s say you worked that same job, at the same rate, and for the same number of hours per week, for the entire duration of your college career.

$260 per month x 12 months in a year x 4 years (the typical length of a bachelor’s degree) = $12,480

Here’s how much you could save on the average student loan*, depending on how much you put towards your debt.

As you can see, putting even a small portion of your income towards your debt can result in significant savings. So, while working in college can sometimes be challenging to manage, consider picking up one of the jobs listed above, even for just a few hours a week. 

*The average student loan balance is $37,584. The average student loan interest rate is 5.8%. The average student loan borrower takes 20 years to repay their student loan debt. Calculations are based on the averages — a $37,584 loan with a 5.8% interest rate and a 20-year repayment term.

Soft credit checks (also called “soft pulls” or “soft inquiries”) occur when you or someone you authorize, such as an individual or company, checks your credit report. There are a few common reasons a soft credit check would occur — to prequalify for a loan, for employment background checks, and to check your credit score.

How Do Soft Credit Checks Work?

A soft credit check, in a simple sense, is a quick peek into your credit history done purely for informational purposes. It allows you, or whomever you authorize, to briefly assess how effectively you’ve managed your debt thus far but is not intended to assess your ability to handle a new line of credit.

In comparison, a hard credit check is done when submitting a formal application for new credit. It is intended to assess your ability to manage a new line of credit, and therefore, the inquiry will remain on your credit report and will impact your score temporarily.

Does a Soft Credit Check Hurt Your Credit?

A soft credit check does not hurt your credit score. Soft credit checks are not associated with a potential new debt, and thus, are not factored into your credit score calculation.

Think of it from a lender’s perspective. Taking a quick peek into your credit score to see where you’re at is fairly harmless. Applying for ten new lines of credit in one month, however, is an indicator that something isn’t quite right.

(Remember, looking at your credit score for informational purposes results in a soft credit check, while applying for a new line of credit results in a hard credit check.)

Your history of soft credit inquiries is, in a way, irrelevant to lenders as it doesn’t provide any information about your ability to manage new credit. Your track record of hard credit checks, however, shows lenders when you’ve requested new lines of credit and for what reasons, which can help them evaluate the potential risk in lending to you. A larger number of hard credit checks can raise a red flag for lenders depending on how close together they are.

Commonly Asked Questions About Soft Credit Checks

Can Lenders See Soft Credit Checks?

Lenders can’t see soft credit checks. While a soft credit check may stay on your credit report, depending on the credit bureau, it will only be visible to you, not lenders.

How Long Does a Soft Credit Check Stay on Your Credit Report?

Both hard and soft credit checks can stay on your credit report for up to two years. However, only hard credit checks will impact your score, and the impact won’t last for the entire two years. Typically, hard credit checks only affect your credit score for a few months (if you maintain your credit otherwise).

How Many Soft Inquiries is Too Many?

There is no threshold for “too many” soft credit checks. However, you should monitor the number of hard credit checks you incur in a year. Generally speaking, it is recommended to keep the number of hard credit checks to less than six per year.

How Can I Check My Credit Score Without Hurting It?

Checking your credit score for personal reasons will result in a soft credit check, and thus, will not hurt your credit score.

Several financial institutions, such as banks and credit card companies, offer free FICO scores as an added benefit of working with them. If yours do not, utilize the Annual Credit Report website to obtain your credit report. By law, you are entitled to a free copy of your credit report once per year from each of the three major credit bureaus.

Does Prequalifying for a Loan Hurt My Credit?

More often than not, prequalifying for a loan will not hurt your credit score as prequalification is often assessed through a soft credit check. That said, some lenders do perform a hard credit check during the prequalification process. Be sure to check with the lender directly before any credit check is performed to avoid unexpected hard credit checks.

When prequalifying for a student loan through Sparrow, a soft credit check is utilized to determine the rates you may qualify for with each potential lender. Using Sparrow will not hurt your credit score.

Final Thoughts from the Nest

A soft credit check will not impact your credit score, but a hard credit check will. Before agreeing to a credit check of any kind, be sure to understand what type of credit check will be performed. Understanding how the two types of credit checks impact your score will help you maintain a score that demonstrates creditworthiness.

Interest, often expressed as a percentage, is the cost of borrowing money from a lender. It can be one of two types: simple or compound. The difference between simple and compound interest lies in how they are calculated. While seemingly small differences in their formulas, the type of interest on a loan can drastically change what you pay over time.

Here’s what you need to know about simple vs compound interest.

Simple Interest vs Compound Interest

What is Simple Interest?

Simple interest is calculated based on the principal of the loan, or the amount you originally borrowed. So, in other words, the amount of interest you accrue each month will only be calculated based on the amount you initially borrowed.

What is Compound Interest?

Compound interest is calculated based on the principal of the loan plus any unpaid interest accrued on the loan. So, over time, interest will accrue on top of both the principal and any previously accrued interest.

Simple vs Compound Interest Example

Let’s say you had a principal loan balance of $30,000. For simplicity’s sake, let’s say it costs you $3 per day in interest to borrow that money.

With simple interest, it will cost you $90 per 30-day month in interest. ($3 x 30 days = $90)

With compound interest, your balance would increase to $30,003 on the first day. The next day, the interest amount would be calculated on a balance of $30,003, not the principal balance of $30,000. So, over time, the interest can accrue quite quickly as it compounds on itself.

Which is Better: Simple or Compound Interest?

If you have the option to choose between simple and compound interest, we recommend selecting simple interest.

Simple interest will often cost you less over time than compound interest because you will only pay interest on your principal loan balance. With compound interest, you will pay interest on your interest (say that 10x fast), which will inevitably cost you more over the life of your loan.

Here’s an example of how simple and compound interest would impact how much you pay over the life of the same loan.

While the two loans have the same principal balance, interest rate, and repayment period, the loan with compound interest would cost you $13,788 more over the life of the loan.

Are Student Loans Simple or Compound Interest?

All federal student loans operate on simple interest, and the vast majority of private student loans do, too. However, some private student loans do operate on compound interest, which often compound daily. To verify how your student loan interest is calculated, check with your lender directly.

Once you know how your student loan interest is being calculated, you can estimate your overall interest cost. To do so, use the simple and compound interest formulas.

Simple interest loans: Principal x interest rate x loan term = simple interest

Compound interest loans: (Principal (1 + interest rate)^ Number of compounding periods in a year) – principal = compound interest

As you can tell, the compound interest formula is a bit more complicated than the simple interest formula. If you have trouble doing the calculation by hand, you can utilize a compound interest calculator to help you.

How to Save on Student Loan Interest

Interest is often a major expense when it comes to borrowing a student loan. In fact, the average student loan accrues $26,000 in interest over the course of 20 years.

While opting for a simple interest loan is a great start to minimizing interest costs, there are a variety of ways to minimize it even further.

>> MORE: What is the average student loan interest rate?

Refinance Your Student Loan(s) 

Refinancing your student loan debt can result in significant savings in interest. In fact, borrowers who used Sparrow to refinance reduced their interest rate by 2.29 percentage points, saving them approximately $17,000 over the life of their new loan, on average.

>> MORE: Refinance student loans: Compare the best lenders

When you refinance, you essentially take out a new loan with a better interest rate or terms and then use the new loan to pay off your old loan.

Here’s how a 2.29% interest rate reduction could impact how much you pay over the life of your loan.

*Note that these numbers are based on a full 15-year repayment term, prior to making payments on the initial loan. The calculations will change based on how far into your repayment period you are, any surplus payments you may have made, and the new loan term you choose.

Add a Cosigner to the Loan

A cosigner is an individual who signs onto a loan alongside you, taking legal responsibility for paying back the loan should you fail to do so. A creditworthy cosigner gives lenders a “second line of defense,” if you will, lowering the risk for them to lend to you.

As a result, lenders will often offer you a lower interest rate on your student loan if you have a creditworthy individual cosign your loan.

>> MORE: What is a private student loan cosigner?

Negotiate Your Interest Rate

Believe it or not, you can actually negotiate your student loan interest rate. While it isn’t 100% effective, it can’t hurt to call up your loan servicer and ask for a lower interest rate.

See if the Lender Offers an Autopay Discount

Many private student lenders offer an interest rate discount, often 0.25%, for opting into autopay. By opting in to autopay, your student loan payments will automatically be withdrawn from your account each month. 

You should only opt in to autopay, however, if you are absolutely positive it will not result in an overdraft of your account.

>> MORE: How to save thousands on student loans with an autopay discount

Final Thoughts from the Nest

The type of interest you have on a loan can drastically impact how much you pay over the life of the loan. So, before borrowing, consider whether the loan has simple or compound interest.

To explore a variety of student loan options at low interest rates, submit the Sparrow application.

While having a college degree is extremely beneficial and advantageous in our modern world, many people don’t talk about how costly it can be. 

Saving for college is in your best interest if you want to be able to pay for your education comfortably, but there are still many ways to make college affordable. 

Let’s find out what these options are and how you can make your dreams of college more accessible. 

How Much Does a 4-Year College Actually Cost?

College tuition has seen a notable increase in the past forty years due to inflation, growing disproportionately to other consumer goods in the economy.

The average cost of tuition, fees, and room/board at four-year public colleges increased by 179.2% over the past twenty years, with an annual average increase of 9%.

For private colleges, the average cost of tuition, fees, and room/board increased by 124.2% with an annual average increase of 6.2%.

Inflation rates and the severity of their growth depend on the type of school. Due to funding, the tuition for public schools usually increases more than the tuition for private schools on an annual basis.

In simple terms, inflation is the rate of increase in the prices of a specific consumer good (cars, loans, electronics, etc.) over a period of time. Inflation fluctuates in every aspect of our economy where things are being bought and sold, though the inflation rate for college tuition has grown exponentially over the years. 

College rates have been increasing since the 1980s, and though there is no exact explanation behind this, researchers attribute the increase to the following factors:

• More student support services: Since the 1980s, colleges have begun to offer more services to students like mental health services, health insurance, and college counseling, which costs more than just a standard college education. 
• Changes in state and local funding: Public institutions rely on state and local funding to operate, though state and local funding fluctuates based on the economy, market conditions, and tax revenue. If universities receive less public funding, tuition increases for students to make up the difference. 

It’s crucial to start saving for college as early as possible so that you can combat the rising costs of college tuition. 

How to Approach Rising College Costs

While the unyielding rising costs of college may seem overwhelming, being an informed consumer and exploring your financial options will mitigate the financial burden of a college education.

You can apply for federal financial aid, scholarships, grants, and loans to lower the cost of college. In addition, speak with your high school counselor or your college’s financial aid office for financial advice and knowledge. 

Having a plan to save for college is imperative to meet your saving goals. 

How Much Should I Have Saved Up for College?

As a Parent/Guardian

It’s never too early to start saving for your child’s college education. In fact, 42% of parents state they wish they would have started saving earlier.

Because of volatile market rates, unpredictable financial aid, as well as the uphill growth of college tuition, it can be difficult to determine whether or not parents have saved enough money to pay for their child’s college tuition. 

The following ratios calculate the ideal amount of money that parents should have saved in their student’s college fund. 

The ⅓ Rule

The ⅓ Rule dictates that parents should save for college by dividing the cost of tuition into thirds: ⅓ of the college tuition should be paid with savings, ⅓ of tuition should be paid with income, and the last ⅓ should be paid with loans/grants/scholarships.

According to the ⅓ rule, parents should save the average cost of college tuition for the year that their child was born.

For example, if a child was born in 2001 and the average cost of tuition that year was $23,528, parents should have $23,528 in their child’s college fund by the year their child goes to college. This way, the cost of inflation is accounted for, and the amount is roughly ⅓ of the child’s tuition when they are of age to attend college. 

The 2k Rule

Fidelity’s 2k Rule assumes that parents are expecting to cover 50% of their child’s college tuition with their college savings and that the cost of tuition will grow 3% above the national inflation rate in a four-year period. 

In order to calculate how much you should save for college, follow these steps:

1. Determine the average annual tuition for your student’s target college/type of college.
2. Multiply the average annual tuition by the percentage you plan to pay for with your college savings.
3. For every $10,000 you cover per year, multiply your child’s age by $2,000.

Fidelity also offers a college savings calculator that does the math for you. 

As a College Student

If you’re a college student paying for your education on your own, all the power to you. While there isn’t a textbook amount of money that you should have saved on your own, the ideal amount to have saved is the same as it is for parents: $2,000 per year.

This is not feasible for the vast majority of students, especially since you can’t begin to work legally until you’re 15 and ½ years old.

Your best option would be to save as much money as you can and make applying to scholarships and grants your first priority. 

You can only apply for financial aid once a year, but there are always going to be scholarships and grants available to you. The more free money you can get, the better. 

How to Get Extra Money for College

If you don’t have sufficient college savings, don’t lose hope! There are still other ways that you can save for college. 

Pick Up a Side Hustle

Nearly 30% of high school students are employed during a portion of their schooling. Picking up a job or a side hustle is not only a great way to make extra money for college, but to explore your interests, pick up soft and hard skills, and develop a strong work ethic.

Whether you want to work part-time at Starbucks, tutor students after school at an hourly rate set by yourself, or intern at a law firm, having that flow of income will be extremely beneficial if you save your money wisely. 

Many employers also offer tuition reimbursement programs. So, not only could you make an income from working, you could gain extra free money in tuition reimbursement.

Apply to Scholarships

A scholarship is a form of financial aid that is awarded to students to support their college expenses. Scholarships are usually awarded based on merit, financial need, or other significant achievements. 

Scholarships come in all shapes and sizes: some scholarships are one-time checks, and others cover your school supplies for your four years at college. 

There are three types of scholarships: statewide scholarships, private scholarships, and institutional scholarships.

Statewide scholarships are offered by the state. This can either be the state you plan to attend college in or your native state. For example, California offers the Association of California Water Agencies Awards scholarship and Utah has the Utah Promise Scholarship. 

Private scholarships are sponsored by private or non-profit organizations. These scholarships can be offered by professional organizations, ethnic organizations, community centers, etc.

Institutional scholarships are offered by the college you plan to attend. Be sure to do research on what specific scholarships are offered at your institution, and contact your school’s financial aid office for more information. 

Scholarships are your best option when it comes to saving for college because you can apply to as many scholarships as you want, whenever you want. Whether you’re a freshman or senior in high school, there are many scholarship options available to you. 

Look for Grants

Grants will be your second best option to save for college. 

While scholarships can be awarded based on merit, achievement, and/or financial need, grants are only offered to students who demonstrate financial need. 

Grant aid is also a form of financial aid that does not need to be paid back and can come from the federal government, state governments, institutions, and private organizations. 

For example, the federal government offers grants like the Pell Grant, while the state of Michigan offers the Michigan Tuition Grant.

If you want to receive grants, you’ll need to demonstrate financial need. In order to do this, you need to submit your Free Application for Federal Student Aid (FAFSA) so that the federal government’s student aid agency can calculate how much aid you need and your expected family contribution. 

Most grants will ask you to send a copy of your FAFSA to determine your financial standing, so submitting your application is a crucial step if you want to receive grants. 

Search engines such as CollegeGrants.org and CollegeGrant.net are great places to begin your private grant search to pay for your college tuition. 

Explore Loan Options As a Last Resort

Once you’ve exhausted your scholarship and grant options, consider applying for student loans if you still need more financial aid. 

Unlike grants and scholarships, student loans need to be paid back and are given out based on your credit history, your cosigner, as well as your financial status. 

There are two main types of loans: private and federal.

Federal loans are student loans that are offered by the government and should be the first option that you should consider. Federal loans are usually more forgiving than private loans and offer loan consolidation and forgiveness options, and don’t require a cosigner. 

The federal government offers four loan options: Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS loans, and Direct Consolidation Loans. 

On the other hand, while private loans are more varied and numerous, they can be trickier and more difficult to navigate than federal student loans. Because most students don’t have a credit history, they will most likely need a cosigner to originate a private loan. Without a cosigner, student borrowers tend to have slimmer chances of acquiring a student loan with competitive repayment options or interest rates. 

While taking out a student loan is not the most optimal way to pay your college tuition, due to interest accretion and repayment contracts, student loans are a great way to start building your credit history as a student.

Usually, private student loans have a prequalification option to determine whether or not you would be eligible for the student loan. Most private student loans require you to submit an application and undergo a hard inquiry, or a credit check, which lowers your credit score temporarily.

Sparrow offers a free, online tool that allows you to see which loans you qualify for without any cost or impact on your credit score. Submit an application with us today to find the best student loan options you are eligible for on the market.

Closing Thoughts From the Nest

Choosing a school and getting into college is already difficult enough, but saving for college and paying for it is a whole other battle. 

While affording college might seem like an impossible task that has no gain for a seemingly substantial financial loss, attending college is not a futile attempt and students/parents should not be discouraged due to costs. 

Students can always apply for grants and scholarships. Picking up a side hustle is a great way to earn money as a student, and institutional work-study is an option as well. Unless the student’s family is making an annual income of $250,000 or more, the family can qualify for federal financial aid. Student loans can also significantly cover the cost of tuition. 

Being an informed consumer is crucial to saving for and affording college, so make sure to explore all of the options available to you.

College is a great way to expand your education and go into a career you love. But, it’s also really expensive. According to U.S. News Data, in-state tuition has risen 79% over the last 14 years. And that’s only in-state.

The truth is the cost of your college education depends on where you go. That’s why it’s more important now than ever to be well-informed about the cost of college. 

What is Included in the Total Cost of College? 

Although tuition makes up a very big part of the cost of college, there are many other things that go into it. You’re also looking at paying for room & board, books, supplies, and other expenses like food, gas, and leisure. 

Average Cost of Tuition 

Tuition makes up the largest portion of college costs. The average cost of tuition at a 4-year public college is $28,775¹ per year. Across 4 years, this adds up to over $100,000. The price of tuition also includes fees. Universities will present the fees in different ways. Some may include it in the tuition while others mark it as a separate fee. You can find this information on their website. 

To reduce the amount you’ll have to pay, look into scholarships and grants. You can start your search by using scholarship search engines like FastWeb or Niche. Also, make sure to fill out the FAFSA for each year you’re in school. This will help you get federal grants like the Pell Grant or the Cal Grant. Be sure to check out institutional grants and scholarships that your school offers as well. Finally, check if you can transfer your AP credits. This might save you money and time. Check with your school and the College Board for more information. 

Average Cost of Room & Board

The average price of room and board is anywhere between $9,395 to $12,540¹ per year. This is dependent on whether you go to a public school or a private school. On average, a public four year institution will be $9,395. A private institution will be $12,540. These prices sometimes can cover your dining or meal plan, too. 

To reduce these costs, think about living off-campus and commuting. If you can find roommates to split the cost of an apartment, you’ll be able to bring down your housing expenses. This will often be a lot cheaper than living on campus. Then, all you have to do is commute to school. If you don’t have a car, you can carpool or take public transportation to campus. Many city transit systems offer bus and train passes at a reduced price to college students. 

Average Cost of Books & Supplies

Books and supplies make up the smallest portion of the total cost, but they can still get pricey. On average, books and supplies will cost you $1,291¹ per year. The cost of this category will depend on your classes. Some may require buying textbooks while others offer textbooks for free. 

To get that price down, looking into buying used books. You can get these from sites like Chegg and SlugBooks. You can also rent your textbooks or borrow them from a friend. Online books may even be cheaper than physical textbooks, and you won’t have to carry them around. 

You’ll also want to look into scholarships and grants for books and supplies, too. You want to get as much financial aid as you can to bring down the tuition price. But, you can use the smaller scholarships and grants for books and supplies.

Average Cost of Additional Expenses

Additional expenses can range anywhere from $2,733 to $6,022¹. A lot of the cost for this category will be dependent on you and the cost of living in your area. After all, you now have personal and daily living expenses to pay for. Learn to be more mindful and intentional with your money. Budgeting can help you do this.

Additionally, some businesses and services offer reduced prices and deals to college students. Look into those to save money while still having fun. There’s nothing wrong with spending or having fun, but be mindful about where your money is going. 

Average Cost of Different Programs 

The overall cost of college will also depend on the type of school you choose to attend, as well as the length of the program you choose. From least to most expensive, there’s community college, public college, and private college. Typically, 2-year institutions will be cheaper than 4-year institutions. When it comes to private schools, for-profit schools cost less than nonprofit schools. While all the different programs and schools are great options, knowing the cost is key to making a decision.

How Do I Use a Tuition Calculator?

Usually, the school’s sticker price isn’t what you end up paying. You’ll pay the net price. The net price is how much you owe after financial aid. Until you get that information, it can be hard to figure out what you will actually pay. That’s why tuition calculators are such great tools. They estimate what your net price will be. You can find tuition calculators on the College Scorecard. Simply search for the school you plan to attend to view the tuition information.

Final Thoughts from the Nest

College can get really expensive, really quick. That’s why it’s important to know the cost of college. Although your net price can come out to be a lot of money, there are plenty of ways to reduce the costs. If you still need help paying what you owe, turn to Sparrow for help in finding private student loans. Just fill out the application to see what you can qualify for at 15+ lenders.

According to a report done by the Education Data Initiative, one year of college is currently $35,331, on average. Saving for college, then, is more important than ever. As parents, you want to make sure your child gets a college education with little student loan debt. The best way to do that is to start saving money for their college. How? Let’s get into it. 

How Much Does 4 Years of College Really Cost? 

Four years of college can cost well over $100,000, and it’s only expected to go up. To give you a better idea of how expensive it can get, right now the cost of tuition at a public, 4-year, in-state school is $22,690 per year. By 2035, it’s projected that it will rise to $32,572 per year. 

How much you’ll pay for college will also be dependent on several other factors. For example, like whether your child decides to go to a public or private school. Private colleges usually cost more. Another factor is how much financial aid they can get like scholarships, grants, and loans. 

When Should I Start Saving for College? 

Our advice? Right now. College prices are only going to get higher, so it’s better to start saving for college sooner rather than later. It doesn’t matter if your child is a newborn, in elementary school, or already in high school. Starting now and having some money saved is better than having nothing. Lucky for you, there are plenty of ways to start your college savings plan.

5 Ways to Save for College 

There are many different ways to start saving for college. Here is a list of 5 ways we think could be great options for you.

Open a 529 Plan

A 529 Plan is an education savings account, meaning it’s a type of savings account for college. It offers both federal and state tax benefits when you use the money for education-related expenses. 

Pros

1. Earnings and withdrawals are tax-free when used for education-related expenses.
2. Depending on your plan, investments can grow to $500,000 over the life of the account and deposits up to $16,000 per person can qualify for gift tax exclusion. 
3. You can treat a contribution of up to $80,000 made in one year as made over five years to shelter a larger amount from taxes.
4. 529 Plans are treated as parent assets and don’t have to be reported on the FAFSA when taking out money for school.

Cons

1. There are penalties and withdrawals if the money is used for non-educational costs. 
2. These programs offer limited investment options. 
3. Withdrawals from the account by someone other than you or your child will be added to their income on the FAFSA. This can reduce their financial aid eligibility. 

Consider Mutual Funds 

Mutual funds are diversified investment portfolios. This means that instead of investing in only one stock or bond, you’ll invest in multiple. These investment plans are managed by financial advisors or banks. 

Pros 

1. The money can be used on anything, so you don’t have to limit yourself to using it just for college expenses (say, for example, your child decides not to go to college).
2. You don’t have any limits to how much you can invest. 

Cons 

1. The earnings are subject to annual income tax.
2. Any earnings transferred to your child are viewed as income on the FAFSA. This can impact their financial aid eligibility.
3. Capital gains are taxed when the shares are sold. 

Open a Custodial Account

A custodial account is a brokerage account that you’ll open on behalf of your child and then transfer to them once they’re either 18, 21, or 25 years old. The account will invest in several securities including stocks, bonds, and mutual funds. 

Pros 

1. The money can be used on anything, so you don’t have to limit yourself to just college expenses. 
2. You don’t have any limits to how much you can invest. 
3. The value of the account can be removed from your gross estate. 

Cons 

1. Once your child receives the money, they may be subject to the kiddie tax. The kiddie tax is a tax on any unearned income they receive at or before they’re 23 that’s over $2,300. 
2. These accounts are viewed as student assets on the FAFSA. This can reduce your child’s financial aid eligibility. 

Consider Savings Bonds

Savings Bonds are securities backed by the U.S. Government. It’s one of the safest ways to invest, and you’re guaranteed to get money back since it’s a low-risk investment. 

Pros 

1. These are federally tax-deferred and state-tax free.
2. Certain bonds, like the Series EE and I bonds, purchased after 1989 can be redeemed federally tax-free if used on higher education expenses.

Cons

1. The maximum amount you can invest is $10,000 on your own and $20,000 as a married couple per year, per owner, per bond.
2. If earnings are not spent on higher education expenses, then any interest earned will be counted as income and taxed.
3. Compared to other options, you’ll receive lower returns. 

Open a Roth IRA

A Roth IRA is an individual retirement account that you can contribute to and earn interest on tax-free. You can even withdraw the money tax-free once you are 59 years old. 

Pros 

1. You can withdraw for any reason. 
2. If the money withdrawn is used for higher education expenses, the penalty is waived. 
3. There is a range of investment options. 
4. These are not counted as assets on the FAFSA.

Cons

1. The maximum annual contribution allowed is $6,000 or, if you are over 50, $7,000. 
2. Individuals earning more than $144,000 per year or married couples earning more than $214,000 per year are ineligible to contribute. 
3. Withdrawals for your college student are counted as untaxed income. This can reduce their financial aid eligibility.
4. Withdrawing money from a Roth IRA account can delay your retirement. 

How Much Should I Save for College? 

Depending on when your child is heading to school, it can be hard to figure out how much money you should be saving for college. There are projections of how much prices will go up, so those can help give you an idea of the cost. Additionally, there are also college savings calculators. They can give you projection costs, let you know how much you’ll cover, and how much more you might need to save. 

Final Thoughts from the Nest 

Saving for college can seem like a mountain that’s hard to climb. It’s a very big goal and is extremely intimidating. But the important thing is making sure your child has something to help them through college. No matter how much that is. Start saving now and consistently, and you’ll be just fine. 

You can even use Sparrow to help pay for your child’s education. If you have exhausted all other financial aid resources, Sparrow is a great way to look for private student loans. Fill out the application to see what you can qualify for at 15+ lenders.

If the cost of the new shoes you just bought is higher than your credit score, let’s chat.

Your credit score impacts your ability to take out loans as well as the interest rate associated with them. If your credit score isn’t as high as you’d like it, or if it isn’t in the range necessary to open a new line of credit, here’s 5 ways you can improve your credit score.

Pay All Your Bills On Time

This one probably sounds like a no-brainer, but making all of your credit payments on time is crucial. Even if you’re just making the minimum payment, paying on time shows lenders that you’re able to keep up with your credit accounts.

Payment history makes up roughly 35% of your credit score¹, so making even one late payment could impact your score quite a bit. A few ways to help prevent making late payments include:

1. Putting a reminder in your phone for a few days before your bill is due every month
2. Setting up automatic payments so the money comes out directly from your checking account (only do this if you’re sure the money will be there every month to avoid overdraft fees!)

Pay Off Your Debt

This one is also a no-brainer and much easier said than done, but paying off your debt can raise your credit score significantly. You should aim to have around a 30% or less credit utilization ratio. This ratio is the amount that you owe across all credit accounts compared with the total amount of available credit.

Source: Better Pockets

For example, you may have 3 credit cards all with a $1,000 limit. This means your total amount of available credit is $3,000 ($1,000 limit x 3 credit cards = $3,000).

If you owe $100 on the first credit card, $200 on the second credit card, and $300 on the third credit card, you would have a 20% credit utilization ratio ($600 compared to the $3,000 limit).

Paying off the money you owe can help lower your credit utilization ratio which shows lenders that you’re being responsible and not maxing out all of your available credit accounts.

Keep reading: Simple Hacks to Pay Off Student Debt Faster

Limit New Credit Accounts

Applying for a new line of credit will cause a “hard inquiry.” Hard inquiries occur when a creditor requests to look at your credit file to determine the level of risk you pose as a borrower.² This hard inquiry can actually harm your credit score for the first few months after it occurs. If you’re concerned about your credit score, it’s best to stay away from anything that may harm your score even if it’s just temporary. 

In the event that you do need a new line of credit and want to shop around for the best offers, it is best to do so in a 45 day period. This is because FICO, the most commonly used credit scoring model, considers similar loan-related inquiries that have occurred within 45 days of each other as a single inquiry in the scoring process.

For example, if you shopped around for a student loan with five different lenders over a period of 45 days, FICO would consider those five hard inquiries as one hard inquiry for credit scoring purposes. FICO is able to process your rate-shopping as exactly that: rate-shopping for one loan, not you attempting to take out five separate loans. As you can imagine, attempting to take out five separate loans would raise some red flags to FICO, as where rate-shopping does not.

Keep Credit Card Accounts Open

Closing any credit card accounts you currently have open, for any reason, may not help your credit score in the way you think. Every time you open a line of credit, it adds to the length of your credit history. Credit history is important in calculating your credit score because it proves to lenders that you’ve been able to manage your credit consistently over time. Thus, even if you don’t use a credit card, keeping the account open can help contribute to proving your credit worthiness. 

You may want to consider closing your credit card account, however, if the card has an annual fee that you simply can’t afford.

Pay Attention to the Credit Report

1 in 8 Americans is unaware of their credit score.³ Don’t worry – we won’t let that be you.

Numerous credit card companies, banks, and other financial institutions now offer free credit score reports. If yours doesn’t, you can use the Annual Credit Report to get a free copy of yours every 12 months from each of the three credit bureaus. 

Knowing your credit score is important for a variety of reasons. Not only is it important to understand where you are financially, but it’s important to check for errors, fraud, or potential identity theft. If something just doesn’t look right about your credit report, it’s important to inquire. This level of attention to detail could be the determining factor in you qualifying for a new loan or line of credit.

Summary

If your credit score it’s quite where you want it, don’t fret. There are numerous ways to increase it. What’s important is that you remain consistent and dedicated to these methods. If you do, you will notice your score increasing over time.

If you’re worried about how your credit score may impact your ability to take out a student loan, we got you covered there, too. There are lenders that will lend to folks with no credit or bad credit. Check out your options here.

Understanding how credit works may feel impossible.

A great place to start is by learning the difference between a hard and soft credit inquiry. We’ll give you all the ‘deets below.

Important Note

Before we dive in, we want to note that credit inquiries are also often referred to as “credit pulls” or “credit checks.” In this article, we’ll refer to them as “credit inquiries.”

What is a Hard Credit Inquiry?

A hard credit inquiry occurs when a financial institution checks your credit report when making a lending decision. For example, this may happen if you decide to apply for a mortgage, credit card, or student loan.

When doing a hard credit inquiry, lenders are attempting to assess how you have handled your credit in the past. This can include how you’ve managed your debts, whether you’ve made payments on time, or if you seem to have fumbled your way through paying your debts.

To a lender, each new credit application indicates a potential new debt. Thus, your credit score may temporarily drop after a hard inquiry.1 Don’t panic, though. FICO says hard inquiries typically only lower credit scores by 0-5 points. Generally speaking, one hard inquiry won’t cause too much trouble, but several hard inquiries could. (We’ll touch on this below.)

This hard inquiry will remain on your credit report for up to 2 years. Generally, this doesn’t bring down credit scores the whole time. For people that keep up with their debt payments, credit scores tend to come back up within a few months.

What is a Soft Credit Inquiry?

A soft credit inquiry occurs when an individual or company checks your credit as part of a personal curiosity or background check. For example, this may happen if you decide to check your credit score or if an employer checks it before hiring you.

Because these inquiries are not associated with a new potential debt, they will not impact your credit score in any way. Unlike a hard inquiry, a soft inquiry will only be visible to you in your credit report.

How Many Hard Inquiries is Too Many?

How much a hard inquiry impacts your credit score is dependent on your credit health. Lenders see multiple credit applications in a short timeframe as a sign of risk.

Think of it this way: If you applied for 10 credit cards in a one week span, something might be off. It could indicate a need for additional credit, a lack of secure funds, or an inability to pay off other debt. To lenders, this isn’t ideal.

Thus, one or two hard inquiries likely won’t have too much of a hit on your credit score, but having several in a short amount of time likely will.

There are some exceptions to this. For example, having hard inquiries from a mortgage and student loan at the same time likely won’t hit your credit score as hard as if you applied for 10 credit cards in the span of 3 weeks.

So, there isn’t a finite number of hard inquiries that is considered “too many.” Rather, you should try to think about what the hard inquiries are for and how that makes you appear as a potential borrower.

Can You Remove Hard Inquiries?

You can only remove hard inquiries in certain circumstances.

First, you should check your credit report from all three bureaus at least once a year. You can do this for free at AnnualCreditReport.com. (Remember: Because this is a soft inquiry, it won’t impact your score to check it!) Understanding your credit score and where it’s at is the first step to bringing it up.

When looking at your credit report, try to make note of any hard inquiries that don’t seem to make sense. While uncommon, there could be hard inquiries you don’t recognize, and of course, you would want to dispute those.

If you do see one you don’t recognize, reach out to the respective creditor. You should be super careful when it comes to sharing credit information over the phone or online with someone. Always use the contact information in the credit report. This will ensure that the creditor you call is actually who they say they are.

The creditor will then be able to verify the unfamiliar hard inquiry. Oftentimes, it is simply from something we forgot, but it doesn’t hurt to verify it. If the hard inquiry does end up being a result of fraudulent activity, you can:

1. Report it to law enforcement
2. Enact a fraud alert or security freeze with your creditor
3. Dispute the inquiry to have it removed from your credit report

Why Your Credit Score Matters

Your credit score is a large part of your financial wellness, and it takes some time to build. Monitoring changes in your credit score helps you manage it better and keep your score as high as possible.

We wanted to know what financial regrets college students had so you can avoid them.

So, we asked the realest of the real. The best people we know…Our friends.

Here are their top financial regrets from college.

1. Not Thinking More About Savings

This was by far the most popular response, and it went both ways: saving too much and not saving enough.

Some students/grads wished they hadn’t panicked as much about money and instead, just budgeted to have a better understanding of where they were financially. Often, they missed out on experiences they wouldn’t have again because they felt the need to save every single dollar.

On the other hand, several students expressed that they didn’t save enough or at all. While they might have worked while in school, most of their money went out the window. By graduation, they were left with very little to show for all their working hours.

How to Avoid: Make a budget or expense tracker. While it may be tedious, keeping track of all the money that comes in and goes out will help you see where you’re at financially. If that seems a bit overwhelming, commit to moving 10-20% of each paycheck over to your savings to start.

This will help ease your mind when it comes to understanding your finances because you’ll be able to see exactly where your money is going. Then, you’re able to give yourself a budget for fun things while also saving some too.

For budgeting, we recommend Mint, and for automated savings, we recommend Acorns.

2. Spending Money on the Wrong Things

So many students from our poll expressed regret associated with spending money on more material objects like late night food or clothing rather than experiences like attending a game or concert on campus.

The reality is, once you graduate, the only thing you can take with you are the memories. Sure, grabbing food late at night is fun, but so is being able to spontaneously agree to Uber off campus with your friends because you have the money to do so.

How to Avoid: Before purchasing material items, ask yourself if it’s completely necessary or if you’ll use it more than 30 times. For example, pencils for class are a material item but completely necessary, and you’ll use them more than 30 times. A $50 Halloween costume, however, isn’t necessary, and you’ll probably only wear it once. Ditch the costume and save the coin for something more meaningful.

3. Not Understanding Loans

This regret showed up in two ways in our poll: not understanding the difference between loan options and agreeing to one loan option without knowing about the others.

This is definitely an overwhelming part of the college process, and we don’t blame anyone for not knowing the difference between loans or fully understanding how they work.

That said, taking the time to answer these questions before agreeing to borrow from any one lender will likely save you a ton of time and money in the long run.

How to Avoid: Take a bit of time to read a few articles, watch some YouTube videos, or listen to some podcasts that explain the difference between loan options. Don’t commit to any one lender unless you feel confident in that decision.

4. Buying Every Textbook

*cue the sad tunes*

As a former college student myself, it took me a full two semesters to realize that buying books from the campus bookstore was costing me way more money than it should. I was also shocked to learn that I didn’t actually need to purchase every single book that was recommended to me. 

My first semester, I purchased every book on every syllabus and probably didn’t open half of them. The folks in our poll shared a similar sentiment.

On average, college students pay more than $1,200 per year for textbooks.¹ This is an exorbitant amount of money that is largely unnecessary to spend.

How to Avoid: When you get your syllabi the weeks leading up to classes, you may see books listed as “required.” Unless you get an email from the professor restating that requirement prior to class starting, we recommend waiting to get it until the first day of class. More often than not, professors won’t need you to have the book on the first day and will give you some time to get it.

This will allow you to look at all of your options before buying it from one place. Always do an initial google search for “[Book Title or ISBN] free pdf.” You will be surprised how many books are already online for free! If that doesn’t yield any promising results, we recommend using Slugbooks.com which will allow you to enter the book title or ISBN and compare prices across all online options. 

Summary

The financial aspect of college is hard. There’s no way to sugarcoat it. But, by sharing financial regrets, we hope we can prevent you from making the same mistakes.

So, from one college student to another, cheers to making informed financial decisions.