7 Ways to Be Smart when Borrowing Money for College ...

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Borrowing Money for College is hardly a phenomenon, in fact it’s becoming more and more prevalent and it always increases during economic slumps. Student debt is a serious issue that can be a blight on many a student’s dreams of a bright start to life after college. After borrowing money for college in the form of government and other loans to fund their degrees, many graduates have found that they will be incurring and having to pay off debt for nearly the rest of their lives. The default way of getting money for college nowadays is to take out a loan, considered as an investment for a brighter future. However, there are other ways of funding students’ education, including these 7 Ways to Be Smart when Borrowing Money for College, that won’t lead you into an unmanageable amount of debt.

1. Start Saving Now with a 529 Plan

It’s never too early to start saving. A 529 plan is operated by a state or an educational institution to help families set up a savings account designed to help save money for college. Saving money that can gain interest whilst it is in the bank is extremely important, since every $1 borrowed from a loan will transform into a $2 when you’ll have to pay it back.

Avoid over-borrowing
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