Preventative Measures

• Maximize scholarships and grants -  Every small scholarship adds up.  Search for scholarships specific to your degree program or your hometown.  This will reduce the competition because these smaller scholarships are often overlooked by students. Visit Scholarships.com to search for scholarships by different criteria.
• Inquire about work/study opportunities – The Federal Work Study Program allows undergraduate and graduate students to earn funds through part-time work.  In order to receive federal financial aid, including work-study funds, grants, and scholarships, students must fill out a Free Application for Federal Student Aid (FAFSA).
• Make tuition a factor in choosing a school – You don’t have to go to a private school to have a good college experience.  Public colleges and community colleges can offer the advantages of small private schools without the ridiculous tuition prices.  Read how to have a private college experience at a public college price.
• Live like a student – Some students use loan money to cover non-educational expenses.  While in school, you’ll  need to reduce your living expenses as much as possible so that loan funds can be used for tuition and books only.  Take on a roommate or stay in the dorms to reduce your housing expenses.  Earn extra money by tutoring or freelancing.

Damage Control

• Understand your debt – Instead of letting someone else calculate what you owe and your payments, do it yourself.  Figure out what you’re paying in interest daily by multiplying the interest rate on your loan by the principal balance and dividing by 365.25.  For example, if you have a principal balance of $20,000 and an interest rate of 6.80%, your daily interest will be ($20,000 x .068) / 365.25 = $3.72.  Set up an Excel spreadsheet for your loan calculations or use the loan payment chart generator at Finaid.org.
• Payoff high interest loans first – As soon as you have income, make paying off your highest interest loans a priority.  If you’re able to make more than the minimum monthly payments, do it. Don’t let the interest pile up so much that you can never make a dent in the principal.
• Consider discharge options – If you work in certain professions, you may be able to get your loans discharged or reduced.  For example, teachers working in low-income areas may have their loans forgiven or cancelled.
• Learn the pros and cons of consolidation – Consolidation can have a positive or negative effect on your financial situation.  One major disadvantage is the possible loss of discharge and other benefits when you consolidate.  You may also be charged a penalty for prepaying.  However, consolidation can also simplify your payments and allow you to pay off your loan sooner. Read about the pros and cons of consolidation to determine if this option is right for you.

You don’t have to rack up huge loans to get a good education.  Loans, grants, and work/study funds can go a long way if you take advantage of all the options available.  Read The Ultimate Scholarship Book 2011: Billions of Dollars in Scholarships, Grants and Prizes to find scholarships you may have overlooked.

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• 25 Free Financial Resources for Recent Graduates
• What's a Useful Degree?
• The Problems with Law School
• How to Make the Most of Your College Education
• Questions to Ask When Choosing a College

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Lifehack.org offers advice for college freshman.

CollegeRuled is an online organizer and planner for college students only (.edu email address required).

LectureFox has free university lectures on a variety of topics.

The Student Loan Advisor from FinAid.org calculates the maximum amount you should borrow based on the degree you’re seeking.

The Career Project contains detailed occupation profiles with information about salary, work environment,  and job satisfaction.

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• Guide to Changing Your Major

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1. How do recent graduates get started in a career when they have no relevant experience?

If your experience is minimal or non-existent, you face one of life’s greatest employment challenges.  You need to go into your interviews with a positive attitude and demonstrate your flexibility, your social skills and your ability to get the job done even if you have to learn new skills and meet demanding deadlines.

It’s a tough economy right now, so the job market is hypercompetitive; experience is a key differentiator between candidates.  It’s never too late to start building up relevant experience through intern positions, co-oping, volunteering, etc.  If you have no experience, be willing to take an entry-level job in order to build experience, and then work your way up. Or be willing to work for free in a post-graduation internship.

2. How can job candidates best prepare for an interview?

There are some great books out there, and many web sites, that have tons of advice on general interviewing skills. There are books on common interview questions and how to answer them correctly. In your specific field it is likely that there are sample “stumper” questions available on web sites, as well as advice on how to deal with them. If you have “problem areas” in your resume, research how to talk your way around them and accentuate the positive. Then practice. Assume the first several interviews you do will be a little rough around the edges, so do those with companies you don’t really care about. Get used to answering the questions and smooth out your responses. Ask your friends to interview you. If it’s a possibility, go to the career center and ask for a practice interview. Practice. Then when the “big interview” falls in your lap, it will be easy(er).

3. What are the most important soft skills and technical skills for graduates to have?

Your degree should have covered the technical skills, which you should have been able to perfect with internships in your chosen field. Therefore, technical skills should be solid at this point.

“Soft skills” include things like leadership ability, communication (spoken and written), teamwork, relationship-building, work ethic, problem solving, etc. You should have been building these skills over the last four years by taking on leadership roles (which would look good on a resume), working on team-based projects and extracurricular activities (which would look good on a resume), solving real-world problems in competitions (which would look good on a resume), etc. Assuming you have done none of those things, then your next-best option is to read about these soft skills. Get books on things like leadership, communication, negotiation, team building, business ethics, etc. and become a sponge.

4. What industries should graduates focus on while job searching?

Ideally a graduate should focus on industries in his or her area of expertise. But jobs are so scarce at the moment that graduates may want to cast a wider net. Or you may want to consider working for no money if you have no experience (I.E. a post-graduation internship). There are some startups getting venture funding right now. You might look for a venture-backed company like that since it would be hiring. Some industries (e.g. Green energy) are getting a boost from federal stimulus funding. Do some research and see which companies in your area are getting funding and may be hiring. Some areas are affected less in a recession. For example, people still get sick when the economy drops. Look for recession-proof industries.

5. How can new employees make a good impression during their first jobs or internships?

Some general traits that make a good impression with employers: working harder than everyone else, meeting deadlines, exceeding expectations, making friends, helping others, being grateful, figuring out what needs doing and getting it done before being asked, understanding what is important to the bottom line and focusing on that, putting first things first, making customers ecstatic, etc.

6. Many students are going to graduate school to ride out the recession. Is this a good idea?

Graduate school is something to consider regardless of the economy.  The focus should be on making the most of your time and opportunities to fill holes in your resume.  Graduate school is just one proven way to strengthen your professional profile.  Build your soft skills.  Get intern positions.  If you come out of graduate school with a stellar resume and a marketable advanced degree, you are putting yourself in a position to succeed.

7. What options do recent graduates have if they’re having trouble making payments on student loan debt?

Every lender is different, and there are many different types of student loans. So if you are having trouble making payments, you need to communicate with your lender(s) and find out what options may be available. In some cases you can arrange for deferment or forbearance. You may also be able to delay payments with graduate school, military service, AmeriCorps service, etc. Loan consolidation may also help a little. Research all options.

But you might also want to consider sucking it up and getting started with payments. Get two jobs, move in with your parents (or get a couple of roommates to drastically lower rent), ride the bus instead of getting a car, etc. Yes, it’s painful. But the sooner you start paying, the sooner you get done.

8. Any other tips for recent graduates?

You have chosen one of the toughest economies in several decades to graduate. Expect things to be harder than normal in the job search, and do what you can to avoid discouragement. Do not forget that getting rejected is a normal part of job hunting, even in a good economy.

Related Posts:

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• Helpful Links for Job-Seekers

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Public universities offer a variety of extracurricular and academic options and are generally less costly than private colleges. However, private colleges don’t usually suffer from overcrowding like public universities and they allow for more interaction with professors.  Fortunately, public universities offer some alternatives that provide the benefits of  a private college without the cost.

Branch Campuses – Large public universities may have branch campuses to offset overcrowding on main campuses and to attract non-traditional students.  I’ve attended classes at a branch campus of my university and preferred it to the main campus for several reasons: smaller classes, newer facilities and more mature students. The downside is that they may not offer as many courses as the main campus.

Honors Colleges – Most larger universities have established honors colleges which offer smaller classes and more interaction with professors.  Honors colleges may have their own curricula and/or extra required projects.  Admittance is usually based on ACT/SAT scores, high school GPA, and extracurricular activities.

Community Colleges – You may be able to avoid overcrowded classes by taking them at a community college.  Certain courses at large universities tend to be very large, but they may be smaller at a junior college.  Just be sure they will transfer to your university.

Summer/Intersession Courses - Summer and intersession classes tend to be smaller and campuses will be less crowded.  Taking summer or intersession classes can also help lighten your course load in the regular semester.

Before you pay $30,000+ for the private college experience, look into these options at public colleges.  You’ll get the benefits of both a large university and a smaller college without the huge tuition bill.

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Related Posts:

• Costs Every College Student Should Consider
• 25 Free Financial Resources for Recent Graduates
• Tips for Saving on Textbooks
• Don’t Let Student Loans Ruin You
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If you are one of the many people who are considering going back to school after losing your job, you shouldn’t let a bad economy stand in your way. There are many different ways to come up with the money you need to pay for school.

1. Community Grants and Programs. The first place to start when you need money for school is your local community.  The recent downturn has prompted many local governments and community organizations to establish special programs for unemployed individuals. Some of these programs provide career education; others provide grants to cover education costs.

2. State Aid. State programs or grants may also be available for students who need financial aid. You can learn more about potential programs by contacting your state’s education department or related agencies. If aid is available, you will most likely need to apply for it using state-supplied forms. Whatever you do, be sure to follow all of the instructions and apply as soon as possible. State aid is always limited and is usually available on a first come first serve basis.

3. Federal Grants. The federal government awards billions of dollars in grants to needy students every year. The most commonly used grant is the Federal Pell Grant, which provides need-based grants to low-income students. All grants, including the Pell Grant, can be used to cover tuition costs, books costs, and other fees.

4. Scholarships. Scholarships are also an excellent way to pay for your education. Like grants and state aid, scholarship money is free money. You will not have to pay it back after graduation. Scholarships are usually awarded through commercial organizations, professional associations, and individual benefactors. You can find scholarships through the many scholarship search engines on the web. Good engines to try include Scholarships.com and FastWeb.com.

5. Government Loans. Taking out a loan to pay for your education may not seem like the ideal scenario, but the investment will eventually pay off. Research has shown that a degree can increase salary potential and competitiveness in the job market. If you decide to get a loan, be sure to look at loans that are guaranteed and subsidized by the federal government. Good examples include Stafford Loans or Perkins Loans. These loans usually have low interest rates and deferred payment options.

6. Private Loans. Taking out a private student loan may also be an option worth considering. Most banks have some sort of student loan program that can be used to cover the cost of tuition and other expenses. If you do decide to get a loan from a private bank, be sure to compare interest rates and loan terms before making a final decision. Rates and repayment options can vary from bank to bank.

7. Social Finance Companies. Traditional banks aren’t the only institutions you can turn to when you need money for school. There are companies out there who are dedicated to matching people who need money with people who have money. Commonly known as social finance companies, these organizations act as a mediator between private lenders and needy borrowers. Popular companies include Zopa, which offers low-rate loans from a non-profit member-owned credit union, and Prosper, which can help you get a personal loan from one of the company’s many partners.

8. GreenNote. Designed specifically for students, GreenNote is a unique company that offers an alternative to the traditional student loan. GreenNote doesn’t lend money directly, but it does offer a platform for students to get money from parents, friends, mentors, and strangers. Loans have low interest rates and do not require a credit check, citizenship, or a co-signer.

9. Federal Work Study Programs. Students who need money to fund their postsecondary education can also turn to the Federal Work-Study (FWS) program. The FWS provides funds to students who agree to work part-time either on-campus or off-campus. Jobs are usually community service oriented or related to your job field.

10. School Programs. A lot of colleges and universities have their own financial aid programs for needy students. To learn more about possible programs, you should contact several schools you are interested in and ask to speak to their financial aid department. The department will be able to tell you about their programs and eligibility requirements.

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Related Posts:

• Costs Every College Student Should Consider
• 25 Free Financial Resources for Recent Graduates
• Getting the Most out of a College Job Fair
• How to Make the Most of Your College Education
• Tips for Saving on Textbooks

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Post tags: advice, college, financial aid, money

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