Cartoon of woman cutting chain of ball reading debt from graduation cap

Smart Advice to Help Your Students Minimize Student Loan Debt

Help your students avoid the pitfalls of student loan debt without forfeiting a college education with these smart suggestions for making and saving money.

While some schools' tuition rates rise almost imperceptibly this year, others increase by thousands of dollars each year. Some of students may perceive these ever-ballooning price tags as roadblocks to a college education. But they don't have to be. With the total outstanding student loan debt in the United States constantly increasing, taking out loans seems all but unavoidable, particularly for middle class and economically disadvantaged students. So how can you help your students avoid falling down this rabbit hole of student debt without forfeiting a college education altogether?

Educate them about student loans

Make sure your students are familiar with the different types of student loans and their long-term effects. It's easy to sign a few papers and take the money when repayment is at least four years away, but those four years will go by quickly—and loans are often a lifetime commitment.  Help them understand their financial aid options and the interest rates of both federal and private loans and how much that interest will cost them over the life of a given loan.

Help them search for scholarships and grants

Obviously, the more money your students can get for free, the better. Researching and applying for scholarships takes some time and effort, but it will be more than worth it in the long run. Be sure they're also looking at the institutional scholarships and grants available at the schools they're applying to. Some schools offer scholarships for things like above average SAT scores—they just need to be sure to check with financial aid offices so they know what's available and how they can cash in.

Related: 6 Quick and Easy Ways to Find More Scholarships

Offer money-saving and money-making suggestions

Whether a student is going to a local state school or an Ivy League university, a college education is one of the biggest purchases they will ever make. Help your students find ways to scrimp and save whenever possible. Many freshmen take a hit when it comes time to buy textbooks. Advise them to hunt for used textbooks at campus bookstores or online before shelling out hundreds of dollars for brand-new copies. Also advise your students to look into work-study options or part-time jobs to help pay for tuition and cost of living expenses. Just be sure they're familiar with their schools' policies since some colleges prohibit freshmen from working during their first year.

Additionally, after the excitement of turning 18 and graduating from high school, living at home might seem like a freedom-crushing option, but students who live within a reasonable driving distance of their schools might consider commuting. Room and board can add tens of thousands of dollars to the total cost of attendance, so toughing it out with the parents for a little while can translate into a huge savings.

Suggest “more bang for your buck" options

Help your students investigate money-saving options at the schools they plan to attend. Some schools offer flat-rate tuition, meaning that once students have registered for enough hours to be considered full-time, they can take as many hours as they want for a flat rate (though they may need departmental permission to take a particularly large course load). This option can both reduce the overall cost of a college degree and encourage students to graduate on time.

Other schools offer guaranteed tuition plans, under which students will pay the same tuition rate they pay as freshmen for all four years. Guaranteed tuition helps families plan for tuition costs and encourages students to graduate on time, since the rate is generally effective for a maximum of four years. As you help your students narrow down the list of schools to which they will apply, consider suggesting colleges that offer these or similar options.

Related: Forbes' Top 20 List of America's Best Value Colleges and Universities

Even though your students are still teenagers, the decisions they're making today will affect the rest of their lives. Encourage your students to think beyond college. Ask them, "What do you want to major in, what kind of job are you hoping to land, and will that job allow you to comfortably repay the debt you'd need to take on to get that degree?" Of course, there always will be dreamy-eyed liberal arts majors, such as myself. But one simply can't graduate from college and immediately become the next Sarah J. Maas. Before taking on loans, all students, regardless of their majors, should have a realistic idea of what they want to do with their degrees and what kind of financial future they're working toward.

How do you help students avoid student loan debt? Consider dropping us your expert advice and it could end up in one of our Ask the Experts posts!

Like what you’re reading?

Join the CollegeXpress community! Create a free account and we’ll notify you about new articles, scholarship deadlines, and more.

Join Now

Tags:

About Stephanie Farah

Stephanie Farah

Stephanie Farah is a former writer and senior editor for Carnegie and CollegeXpress. She holds a BA in English from the University of Texas at Austin and a master's in Journalism from the University of North Texas. At various times, she has been an uncertain undergrad, a financial aid recipient, a transfer applicant, and a grad student with an assistantship and a full ride. Stephanie is an avid writer, traveler, cook, and dog owner. 

 

Join our community of
over 5 million students!

CollegeXpress has everything you need to simplify your college search, get connected to schools, and find your perfect fit.

Join CollegeXpress

College Quick Connect

Swipe right to request information.
Swipe left if you're not interested.

Sacred Heart University

Fairfield, CT


Wendy Thompson

Wendy Thompson

Owner, Westport Educational Consulting

I just discovered your site and LOVE it—fun, interesting, full of incredible information you can’t find anywhere else, and a godsend for those of us in the college counseling business. I am a fan!

Tinuola Dada

Tinuola Dada

$2,000 Community Service Scholarship Winner, 2015

I am very excited to be this year's recipient of the Multicultural Student Community Service Scholarship. This scholarship will bring me ever closer to my academic and professional goals. CollegeXpress has been an exceptional resource to me, and I recommend it to all rising seniors as they begin to navigate the college application process.

Chris Bell

Chris Bell

Bell College Consulting

The college lists on CollegeXpress are indispensable for sussing out creative additions to a student’s list, and the college-specific pages provide terrific commentary and suggestions for related schools. CollegeXpress is among the most trusted sources I use for information for my students.

Rose Kearsley

Rose Kearsley

High School Class of 2021

CollegeXpress has seriously helped me out a lot, especially when it comes to scholarships and studying for tests like the ACT. I also really love the financial help. It’s a little harder to pay because I live with a family of eight, so any help is appreciated. Thanks for this opportunity!

Victoria

Victoria

High School Class of 2019

CollegeXpress has helped me by opening my eyes to new opportunities. I learned about such easy ways to get financial help to achieve my dreams while also learning about myself and who I truly am. I know this isn't a very long explanation of what CollegeXpress has done for me, but nonetheless, I believe it's crucial to how I developed as a person throughout my time as a college student.