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Funding a College Education (Jane Wayland Commentary)

3 min read

Many articles and reports have been written about the value of a college education. The cost continues to climb, and the opportunities in the marketplace are a struggle for some college graduates. It is no wonder that the value of earning the degree is being questioned.

However, most reports overwhelmingly conclude that a college degree is worth the investment. College graduates are likelier to be employed than their less educated counterparts, according to the Pew Research Institute. On average, a person with a college degree will earn about $1 million more than someone with a high school diploma. Certain jobs will earn substantially more.

But, you must pay for an education, and student debt is a major concern. Nationally, in 2013, 69 percent of graduating seniors at both public and private nonprofit colleges had student loans. In Arkansas, 55 percent of our college students graduated with an average student loan debt of $25,375, according to College Insight. More problematic are the students who do not graduate. They face lower salaries and still must pay back loans.

Students and parents must be realistic about college costs and begin early to determine the best methods to pay for a college education.

Some suggestions:

• Determine the cost of your education and compare costs across colleges. Cost estimates are available on individual college websites. An easy site for a first glance is available at Money.CNN.com.

• Review all the materials available through the Federal Student Aid website. You will need to complete the Free Application for Federal Student Aid at FAFSA.ed.gov.

• Work with the financial aid office of the school to determine your eligibility package. The office will review the cost, the family contribution, available scholarships and loans.

• Apply for scholarships and be mindful of deadlines. In addition to exploring state and other external scholarships, look for university scholarship opportunities. Consider scholarships available at the college or department level. Applications for these scholarships are often due early in the academic year, so do your planning.

• Borrow only what you need, even if you are offered more. Federal loans usually have lower rates than private loans. They also have fixed rates, while private loans are variable. Federal loans can defer payments while the borrower is enrolled or unemployed. Working in public service for 10 years may qualify you for loan forgiveness, and there’s information about that at StudentAid.ed.gov.

• Avoid private loans unless you have maximized your federal loan options. Make sure you understand the interest rates, fees and payback options.

• Read the fine print and know what you are signing. Talk to your financial aid officer to get answers to your questions.

• Do not take on debt that is more than your expected first year’s salary. (GlassDoor.com can help you estimate your salary.)

• Once in school, plan your schedule so that you do not pay for courses you do not need. Pay attention to the suggested four-year plans that are outlined according to your chosen major and work closely with your adviser and faculty members.

• Look at purchasing used textbooks or rent online texts if available. Live at home if possible or find a roommate to decrease the cost of living.

• Consider working part time to help pay for your costs. Working on campus is a good place to begin because departments allow you to work around your classes and studies.

Education is more than a degree. Students learn so much more beyond the academic pursuits that prepare them for their chosen field. They learn life skills, such as creative thinking and problem solving, and the ability to stay focused to achieve their goals.

Exposure to diverse people, cultures and ideas moves students to be informed and engaged citizens. Students are given opportunities to network with successful alumni and work in their fields through internships or service learning.

Students, as well as parents, need to make solid decisions based on need, cost control and realistic future earnings. A degree does not have to be a financial burden.

Jane Wayland is the Stephen Harrow Smith Dean of Business at the University of Arkansas of Little Rock’s College of Business. Email her at JPWayland@UALR.edu.

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