Proactive Preparation: Avoiding Loan Debt

 

For students in higher education, graduating is one of many goals. More than likely, the countless all nighters, numerous deadlines and financial instability was worth it — until it becomes time to repay loans.

In post-graduate life, there are no more hovering deadlines, but loan due dates instead.

Some options to clear debt includes teaching for five years in low-income elementary or secondary schools through the teacher forgiveness program. Other options include working at a public service, non-profit or government job, as well as applying for loan forgiveness or the Income-Based Repayment Plan through Federal Student Aid.

Another way is avoiding extra loans overall.

According to marketwatch.com, a website that offers financial information, approximately 40 million Americans live with student loan debt, but some have less than others. What contributes to their smaller financial burdens is taking caution prior to college enrollment. Along with financial aid, there are many shortcuts that prevent students from taking out extra loans like credit transfer programs between community colleges and universities.

“A lot of students hear ‘college’ and typically think that a 4-year university is their only option, and that’s not the case,” said Jeff Robinson, director of communications at the Ohio Department of Higher Education, ODHE. “We have many programs that are easier on cost, like the transfer credit program and adult education classes through our Ohio technical centers. It’s a matter of finding out what your interests are and what your skills are.”

The College Credit Plus program is a choice for students who are still in high school. Previously dubbed “post-secondary,” College Credit Plus allows junior and senior high school students to take college courses before graduating.

“We have students who are graduating with one or two associate degrees in addition to their high school diploma, so that gives them a jump start on college. They’re also only paying for two years of college as opposed to four,” Robinson said.

Making arrangements before college sets the foundation for student loan debt. It’s easier to follow a higher education plan than to clear debt after graduation, which is why the ODHE focuses on preparation.

“A lot of the things we do is to push students in the direction of cost-saving ways to get their degree in less time and for less cost, but once they take that debt and have taken those loans, it becomes a federal issue,” Robinson said.

Military involvement is one of many route students take to pay for school. As one of several commissioning sources for the Army and the Ohio National Guard, the Reserve Officers’ Training Corps, offers physical training and education at a lower cost.

Contributors can either join the Ohio National Guard as a traditional soldier or participate in the simultaneous membership program, which allows involvement in both the guard and college ROTC. As a simultaneous member, a monthly stipend is given as well as assistance through scholarships and bills.

“There are many types of financial programs available for soldiers and ROTC Cadets, depending on their contract and the programs they pursue,” said Captain Timothy Dubeansky, a multi-functioning logistics officer who earned his bachelor’s and master’s degree with assistance from the guard.

“The Ohio National Guard offers 100 percent tuition assistance to all state funded universities or its equivalent to private universities. Other benefits include Federal Tuition assistance up to $4,500 per year, the Montgomery GI Bill, which has various programs based on eligibility, ROTC stipends and so forth.”

The Ohio National Guard is one of the largest National Guards of the 54 states and territories, with over 16,000 soldiers and airmen. It receives roughly 60 percent of its officers from ROTC, which means that 60 percent of participants are students looking for college assistance.

But what if students don’t properly prepare for college and are not up for the challenge of ROTC? Another option is working for a corporation that offers financial assistance.

As an insurance claims representative at a corporation he chose not to disclose, 24-year-old Nick Adkins applied to his job for the reimbursement program after losing financial aid at 19.

“If you are there for at least a year after your start date, any semester afterwards, you can request tuition reimbursement and they will reimburse you up to $5,250 a year for tuition and school bills, including books, tuition, everything,” Adkins said. “For every full calendar year, I was able to get $5,250.”

Although the reimbursement plan sounds good, much like any deal, there’s also a catch.

“The requirement actually changed while I was working there. It used to be that you had to work there at least one year after your tuition reimbursement to not have to pay it back. Now it’s two years after,” Adkins said. “January was when I got my last reimbursement check from them and if I leave before January of 2020, I have to pay 5,250 back. If I leave before 2019, because, it’s 2 years’ worth, I would have to pay $10,500 back, so I’m kind of trapped in a situation to where I cannot leave immediately, or at least until I have the money to pay them back. But there’s never a scenario where you’re completely trapped. There’s always something you can do to get around it.”

To work as a journalist, Adkins plans on saving and using money from next year’s tax refund to pay back the portion he’d owe, but still recommends programs like these to those who can work. “If you really do want to do what you want to do though, you need to look at every avenue possible because there are a lot of large corporations nowadays, who are starting to pay a little bit more attention to loan reimbursement programs because they understand that financial aid is not always something that works out for people. “

But why are students going to extreme lengths to search for financial assistance?

According to the U.S. Bureau of Labor Statistics. the price of college has increased by 52.7 percent since August 1997 and 2017.

Although higher education is often preferred by employers, there are many ways to attain a degree. Properly preparing for college, pursuing all options and being open minded will help in the long run and decrease any unnecessary student loans in the future.