5 ways to avoid student loans

http://www.savingforcollege.com/articles/5-ways-to-avoid-student-loans-712

Author of "Smart Money Smart Kids", Guest Contributor.

Your kid can be a student without a loan. I promise.

The cost of tuition continues to rise, and more and more students are going into tens of thousands of dollars in debt to get their degrees. That’s nuts.

There’s a better way, and it’s all about being intentional. If you want your teenager to go to college without taking student loans, it’s important that you make a plan right now to prepare for that.

Here are just a few ideas:

Go to a community college first. I know it’s not the glamorous choice, but it’s more than likely the least expensive choice. If your teenager goes to a local community college while saving up money and working, they can transfer out to a larger state school after a couple of years.

Work. Yes, work. You might ask, “How can my son go to college full time and work?” But college students do this all the time. And the cool thing about it? They make money and good grades. I’m not talking about a 40-hour-a-week office job. But they shouldn’t have a problem finding a good part-time job to help them cover the costs of college.

Scholarships and grants. Notice what I didn’t say there? Loans. No student loans! Encourage your teenager to apply for every scholarship and grant they possibly can. A $500 scholarship here and a $1,000 grant there can add up quickly.

Prioritize. What’s more important — putting money toward this semester’s tuition or a new Xbox? That cute new pair of shoes or paying for your books without going into debt? These are some of the decisions college students have to make, and it all comes down to priorities. I’m not saying you can’t have fun, but you should also know how your spending affects other areas of your finances.

Budget! I know what you’re thinking. A budget is soooo boring. But, honestly, a budget gets a bad rap. Once you get started, it’s actually quite simple, especially for college students who don’t have that many bills to pay. All you have to do is sit down at the beginning of each month and plan out how you’re going to spend every dollar during that month. That’s all there is to it! Be sure your future college student knows how to budget and prioritize before they go off to school.

Remember, college will be a lot more fun for your child when they aren’t paying off loans a year after they graduate. Do everything you can now to stress the importance of going to college debt free.

Rachel Cruze is a seasoned communicator and presenter, helping Americans learn the proper ways to handle money and stay out of debt. Her new book Smart Money Smart Kids, co-authored by her dad Dave Ramsey, released April 2014 and debuted at #1 on the New York Times best-sellers list. You can follow Rachel on Twitter at @RachelCruze, online at rachelcruze.com, or at facebook.com/rachelramseycruze.