College is an exciting time. You’re off on your own and starting a new journey. It’s the very beginning of building a great career. But too often, students find out that’s not exactly how things end up. They’ve already taken on thousands of dollars in student loan debt and wind up with buyer’s remorse about the whole college experience.
How can you avoid having a similar outcome? With a little planning, you can ensure you’ll get the most out of your education before you spend a dime or take on debt.
Read more about the hidden costs this mom discovered when her son went off to college.
Let’s talk about five important things I wish I’d known before going off to college and can now share.
Know Where You Want to Work
A great job means different things to different people. Some might be satisfied with lower pay and a great work environment, while for others, pay is virtually everything. Research the prospects in your field of interest. You might discover that there is little chance of employment, pay is low, growth opportunities are non-existent or turnover is high.
Plus, knowing what you want to do is key to getting out of college without spending a fortune. If you switch majors, you could see extra classes and years of school, which adds up. When I started in college, I thought I wanted to be a computer science major. I hated it. I ended up switching majors my first year, but luckily only two quarters into my college career. I was able to graduate on time by simply taking some summer classes.
Don’t Take on Too Much Student Loan Debt
The average student loan debt for the class of 2017 was $39,400, according to recent figures from Student Loan Hero.
Student loans aren’t a bad thing. It’s management of the loans that get students into trouble. Taking on debt unnecessarily can quickly dig you into a financial hole.
A good guide to follow is not to take on more debt than your expected first-year salary. For example, if you expect to earn $40,000 in your first year after graduation, don’t borrow more than $40,000. You can get a clear picture of salaries for professionals in your area by using tools like Glassdoor.
A Top-Dollar School Isn’t Always Necessary
Ivy League undergraduate tuition will cost in the neighborhood of $50,000. But is it necessary? The simple answer is no. There are many people who have gone on to successful careers without having an Ivy league education: Steve Jobs (Apple), Howard Schultz (Starbucks) and Richard Belluzzo (Quantum), just to name a few. Public or state schools provide a great education without the high cost.
To save even more money, try to knock out as many college classes in high school as possible. See if you can even take community college classes while in high school.
All that said, graduate school can be a different story, especially for MBA programs. It’s the connections to businesses and alumni network that play a big part in a graduate’s success. Many of the top graduate schools have the best connections and alumni networks, which can make their high costs worth the price.
Send Your FAFSA in Early
Go into your first year of school knowing your financial aid is a sure thing. Need-based money is given out on a first-come, first-serve basis, so procrastinating on your Free Application for Federal Student Aid (FAFSA) can lead to missed opportunities. Fill it out as soon as it is released at the beginning of every year.
Even if you don’t think you’re going to qualify for financial aid, filling out the FAFSA is the first step in being able to get federal student loans. Ignoring this leaves only private student loans as an option, which can be more costly and offer fewer options for repayment after graduation.
Look Net Price, Not Net Cost
Your college financial aid package may present a “net cost” figure. You might misleadingly conclude this is the total cost for the current year. For example, you see a net cost of $12,000. Great — financial aid has you covered, right? Not exactly.
Mixed into the figure are your student loans, which of course you’ll have to pay back. Also, different colleges may offer the same net cost but with different configurations.
Consider the following:
College A: $5,000 in grants/scholarships and $7,000 in loans
College B: $8,000 in grants/scholarships and $4,000 in loans
College B is the best choice from a financial aid package point of view, due to its high portion of grants/scholarships and lower amount of loans.
Preparation Is Key
As you can see, preparation is the key to ensuring you get the most out of your college experience. This includes knowing as much as possible about your desired career, college costs, and financial aid packages.
Spending a little bit of time up front and thinking about these key factors can save you money and heartache later in life. Trust me, I’ve been there.
Click through to read more about ways to pay off student loan debt.
This article was originally published on GOBankingRates.com.