Youth Finance Institute of America | March 2021
Should you get a loan?
Getting a loan to help you pay for college is no small decision. In fact, 62% of the class of 2019 graduated college with student debt. On average, these graduates owed $28,950 in debt. That number jumps to $47,671 when you look at the average U.S. households with student debt.1 That amount of money can be hard to pay back, even over a span of years. So, before accepting any student loan, try considering a few things. After all, the loan should be helping not hindering you in your progress towards your goals.
Is a loan necessary?
In some cases, loans are absolutely necessary for you to make it through school. However, through a little planning and budgeting you may be able to make it without taking out a loan. Take time to write out exactly how much everything will cost including your living expenses like housing and food, and your entertainment expenses. After writing out your expenses, take a second to look at your income if you plan on working while going to school. Creating and understanding a budget is the best way to keep you out of financial trouble and in many cases can help you achieve your financial goals without needing to go into debt.
What if I need a loan?
If upon writing out your budget you decide that taking out a loan is necessary for you to achieve your goals, start making plans from the beginning that help you set yourself up for success. Look for the cheapest housing options that may include living with roommates or a nearby relative if possible. Making sacrifices can really pay off in the long run.
YFIA Assisting Students in California
The Youth Finance Institute of America (YFIA) is a 501(c)(3) tax-exempt, nonprofit organization dedicated to preparing students to become financially stable and independent into adulthood. Many students lack the knowledge necessary to succeed financially in college. With your help, we can ensure that teenagers and young adults have all the financial help they need. YFIA travels to different schools across California to train and educate students about financial literacy and the steps the students should take to prepare for their future. To help us reach more of these California students who are in need of financial training, please consider donating whatever you can. Thank you!
1. 2020 Student Loan Debt Statistics, https://www.nerdwallet.com/article/loans/student-loans/student-loan-debt