Home Finance Online Education: Best Way to Save Your Children from The College Debt Trap

Online Education: Best Way to Save Your Children from The College Debt Trap

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College Debt

Obtaining a college degree is probably one of the biggest endeavors available to people. The cost of tuition rises on a yearly basis at a pace that regularly exceeds inflation rates. Meanwhile debt loads continue to grow bigger with every graduating class.

The College Debt Trap

A 2018 Harris Poll revealed that at least 45% of recent undergraduates have student loan debt and 39% of those with debt don’t think that it is likely that they’ll be able to pay it off in 10 years— which is the typical repayment period for federal student loans.

This study also found out that the student debt issue has played a critical role in pushing the usual average age for first-time homeownership among millennials to the age of 36. This is because roughly 40% of college graduates tend to remain unemployed, despite stats showing a low unemployment rate. This leaves millennials with a less than desirable debt-to-income ratio.

Meanwhile, a College Board survey on college pricing reports that the “all-in” costs for in-state public college for the 2017 – 2018 academic year averaged $25,290. Private colleges, on the other hand, averaged $50,900 for tuition fees, board, materials and books, transportation and other expenses.

With the ever-increasing costs to obtain a college degree, parents are looking for ways to avoid getting caught in the college debt trap.

Online Education As A Solution

Besides the convenience and flexibility it offers, online education is quickly gaining a lot of popularity due to its lower costs compared to traditional colleges. Here’s how online education can help send your children to college without getting trapped with debt.

  1. Less Tuition Costs
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Online colleges usually charge a lower tuition fee than traditional universities. You won’t have to pay for classroom accessories, food service, grounds upkeep, building maintenance, and other necessities which affect the cost of credits.

In addition, the affordable tuition can allow you to apply for smaller student loans than if you attend a traditional college. You might be able to pay back student loans at a much faster rate or completely avoid taking loans for your education, saving you more money on interest.

  1. School Supply Savings

Online studies typically offer online lectures which are accessible around your schedule providing information discussing the course content. And since all lectures are made available via the internet, there is little need to purchase notebooks and pens. Students don’t need to waste ink by printing copies. They can read their notes online and even listen to lectures several times, without using any expensive school supplies.

Furthermore, most online classes also include downloadable materials rather than textbooks which can add a few hundred dollars to your expenses if you had to buy them.

  1. Save On Commuting Costs

Attending college requires getting to and from the campus. Gas is expensive and driving causes wear and tear on your car. In addition, as your mileage piles up, it also loses value and the more you drive your vehicle, the more upkeep it requires.

Meanwhile, if you don’t have a car and commute instead, with online education, you can save on cab rides and public transportation.

  1. Housing and Meal Savings

Online education allows students to enroll for any degree from a teaching career to business courses, without spending any money on housing, even if the university is on the other side of the planet. Furthermore, some traditional schools require their students to take up meal plans which expire each semester, leaving you to pay for food which you might not eat.

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Most online students will enjoy home-cooked meals from their parents or family and even live with them without paying any rent, making it a living arrangement for significant savings.

  1. Study While Working

Taking classes in a traditional school means that you need to be there at a set time. This only means that if you work, you will have to restrict your working hours and schedule it around your schooling. However, with online education, you can do it the other way around and schedule your schooling around your work. You get to work longer, earn more money and study at convenient times.oeducation

 

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