Student Loans - MMI Offers Money-Saving Suggestions

Financial experts at Money Management International (MMI) recently released a series of suggestions aimed at students, in order to assist them to manage the cost of a higher education. This list of suggestions for students was released following reports of a dramatic increase in figures for student loan defaults, which has been attributed to the recent economic troubles and high levels of unemployment. MMI is a nonprofit, full-service credit-counseling agency which has been providing confidential financial guidance, financial education, counseling and debt management assistance to consumers in the US for over half a century.

The suggestions to students regarding the effective management of the cost of a higher education included the following:

Look for scholarships: MMI advises students to seek out and apply for scholarships, as the money obtained through scholarships does not need to be paid back. MMI recommended the following online resources in the search for scholarships - FastWeb, FinAid, and the Financial Aid Resource Center.

Apply for federal grants: Students are also advised to try to obtain grants to fund their higher education, and advised to complete the Free Application for Federal Student Aid (FAFSA), to consider the Academic Competitiveness Grant, the National Science and Mathematics Access to Retain Talent or the SMART grant.

Choose the right school: Students are advised to attend a college in their own state, as this is generally cheaper than attending a college in a different state. Students, for whom finances are an important consideration, are advised to consider a public funded school as opposed to a private school, and are also advised to use the college cost comparison tool and apply for financial aid at www.CollegeBoard.com.

Consider an alternative program: Students are advised to consider cheaper options that will still allow them to follow a career of their choice. Cate Williams, the Vice President of Financial Literacy for MMI, said, “There are other programs that are just as rewarding, but cost significantly less than a university program. For example, instead of a four year nursing degree that could cost up to $40,000, consider a certification program in respiratory therapy at a community college for only $27,300.”