Financial Problem of Students Essay

665 Words Oct 10th, 2012 3 Pages
What are factors that causes financial problem of a students
And what are the effects of it?

Tuition and Fees
College tuition and fees are large expenses for students. A full-time college student might spend thousands of dollars each term for credit hours, campus parking and books. Many times, these students do not realize they could apply for federal Pell grants to cover many of these expenditures. Pell grant recipients must meet certain income requirements, but scholarships are often available for students not eligible for those grants. Find out more through your school website or counseling office or on websites such as Studentscholarships.org. Avoid parking fees by carpooling with other students when possible and purchasing books
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Consider whether you need extras such as a home phone, cable or extra Internet services. Try using your cell phone as your main phone after rate comparison shopping, and if you must have Internet and cable service, find the lowest-priced deals. Turn your air conditioner, heater and lights off when leaving the home to save money on electricity. Food and other necessities can often be bought at dollar or discount stores to save money.
Student Loans
Many students take on a great deal of debt in the form of student loans. All too often, students take out loans from private companies with high interest rates. According to an article by "The New York Times," variable interest rate loans can reach 20 percent. This can lead to long-term debt that is often difficult to cope with for recent college graduates. Because of the Fiscal Responsibility Act, students can now take out government loans at rates ranging from 4 percent to 9 percent. At the end of the loan period, repayments required will not exceed 10 percent of your discretionary income, and if the loan still exists after 20 years, the balance is forgiven.
Excessive Spending
Many students who are out on their own for the first time may get caught up in a cycle of overspending that comes with eating out, buying new clothes or partying. This lifestyle can become expensive very quickly and can increase

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