College isn’t easy. We all know about it. First, you need to search for a suitable college offering the courses of your choice and then you have to get admission. After that, you have to deal with innumerable assignments, exams, practicals and what not. Apart from all this, there are internals and backlogs which you have to clear. You require books, study material, equipment and instruments. You will have to go on field trips and might require to do research. Bullying is prevalent in a sizeable number of colleges and you might have to deal with that perhaps. If you are living in a hostel you might have to deal with annoying roommates or hostel mates. Not to mention that annoying mess food!
However, college does have its bright side! A good opportunity is available for you to be independent, explore new avenues, meet new people, get new experiences and gather knowledge about many things including those which can be learnt only through experiencing college. If you live away from home, you will learn many more things such as financial management and value of home cooked food. New place, new people, new experience and new activities! Sounds pretty exciting, right!
You need to consider something that is so imperative for you and everyone else; money. You might require an education loan or may already have taken an Education Loan to study either in India or overseas. Here are some Personal Finance questions you have to ask regarding education loan also called student debt. [Get Personalised Advice For Education Loan –Visit]
8 Personal Finance Questions For College Students to ask:
1. How Do You Talk About Money and With Whom?
It might sound obvious that your parents are the ones you have to talk to about money. But it could be a guardian too. Whoever it is, the question is how the money will be discussed. You and your parents have to sit down, chalk out a plan and discuss. This is at least to ensure no discomfort is there when a financial crisis crops up. [Get Personalised Financial Advice For College Students –Visit]
2. Who Pays For What?
I mean your parents and you. Your parents will pay for a few costs, not everything. Most probably they will pay for your admission. What about expenses your parents can’t or won’t pay? You will have to pay yourself for things. Will you do a part-time job and raise money? Will you get an education loan? Who pays for big things like tuition, hostel and books? Who pays for small expenses and miscellaneous expenses?
3. What If The Student Runs Out of Cash?
When the student is in another city or country and he/she runs out of cash, what should he/she do? Make arrangements for that situation early in time. Say, contact the parents to immediately transfer money. If there is a friend or relative, should the student approach him/her for money until money is arranged for the student? How will money be arranged, bank account? Should the student instead take up a part-time job? [Get Personalised Financial Advice For Graduates –Visit]
4. Will The Course Help Me Find Suitable Jobs To Repay My Education Loan?
A complete disaster is when a student takes up an education loan to study something which won’t guarantee him/her a job! When you consider taking an education loan you also have to consider the employment opportunities available for the course so as to repay that loan. What if you suddenly drop out of the course? How will you repay that loan?
5. What Is The Interest Rate?
The amount of interest might be fixed or variable. How much is the interest rate and how much will it rise? Over a period of time, how much will the interest rate increase? Will you be in a position to repay the loan? You need to verify and understand everything about the loan before you borrow.
6. How Much Does The College Cost?
This question determines how many loans you need. The particular course and the college you selected will have costs which you are required to pay. Can your parents afford the cost all by themselves? Is there a necessity to borrow? If so, how much has to be borrowed?
7. How Much Annuity Period Is Available, What Are The Terms and Conditions?
An annuity is a period when the student doesn’t have to repay the loan until he/she finds a job. Usually, annuity periods are for half a year and a year. This varies from bank to bank and financial institution to financial institution. Hence, you ought to verify that. [Get Personalised Financial Advice For Students –Visit]
8. What is My Budget?
In case I am moving to another city, what should be my budget? What should be my budget if I immigrate to another country? These are the fundamental questions every individual has to ask regardless of whether he/she is a student or a working professional.
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