Preparing students financially for life after college is a pivotal aspect of preparing them for college. With the cost of college increasing about 6% each year, it's no wonder why the largest liability for many young adults is college tuition. In 2012, student loans exceeded consumer credit card debt for the first time in United States history, making it the second leading form of debt behind mortgages. At the end of 2017 11.2% of student loan debt was in default, or at least 90 days delinquent. The student debt crisis has ballooned in America, in large part to tuition increasing at four times the inflation rate since the 1970s. When dealing with an endeavor that can be as costly and rewarding as your college education, you need to be prudent.

Public universities will cost much less than private universities. For those students that are in state. This is the most affordable option for students When you hold all else equal, the tricky part about choosing your college is that the most affordable school isn't always the best choice. You need to know what's right for you based on what your aspirations are. Unless you're lucky enough to get a full scholarship or have parents who will pay your entire tuition, you'll need help in the form of financial aid. Aid can come in the form of scholarships and grants, work study or federal aid.

A tactic you need to watch out for is the bait and switch schools will offer a certain financial aid package to incoming freshmen and after completion of their first year, they lower the financial aid. I fell victim to this shady tactic when I was in college. Here's how to best avoid the bait and switch. speak directly with the school and go through your aid package line by line. Verify with the school which grants are guaranteed for all four years. Note any requirements necessary to maintain eligible ability for their awards.

And finally, try to get any conditions of your financial aid package in writing. The best way to prevent this from hurting you is to build some wiggle room into your planning process. Don't let a reduction in financial aid make you transfer schools, it's always best to play it safe. loans, loans loans, they make college possible for so many people, but they financially handicap the lives of countless individuals, including yours truly. This topic is too broad and complex to cover in this introductory course. We'll go into detail about the topics below and much more in the consumer debt champion course.

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