Tag Archives: college

College will look a whole lot different after the Coronavirus pandemic

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By Mike Brown

Special to the Financial Independence Hub

The devastating coronavirus pandemic has flipped every aspect of life on its head and caused great uncertainty, especially when it comes to higher education in North America. 

In Canada, for example, higher education institutions can’t appear to get on the same page, as some colleges will be fully online, some will be a mix between in-person and virtual classes, and some just aren’t sure what they are going to do yet. 

Then there are some colleges, like Brock University, that are implementing mandatory mask policies, while others like St. Francis Xavier University are requiring all students to sign a liability waiver by August 1 to protect the school against any loss or injury related to COVID-19. 

In the United States, the situation is no different, and many students and parents have no idea what colleges are going to do come the Fall. Some institutions, like Yale and the California State University system, are gearing up for another virtual semester, while others like Rice plan to reopen with social distancing regulations in place.

Harvard released a confusing plan that will bring back 40% of students next semester, while the rest will take online classes, and all will somehow pay the exact same price. 

LendEDU, a personal finance website, recently published a survey that highlighted how this uncertainty surrounding higher education in North America could change the college landscape for good. 

Many students considering Online College or a Gap Year during Pandemic

LendEDU’s report surveyed 1,000 respondents that were either current college students from the graduating class of 2021 or later or graduated high school seniors from the class of 2020. 

The results showed that many college students are considering nontraditional alternatives to college in light of the coronavirus pandemic.

For example, 41% of undecided high school seniors are considering enrolling in online college for the Fall semester, while another 28% are not sure if they would do that yet, and 31% will not. 

 

Another 43% of undecided high school seniors are thinking about just taking a gap year next year, while 28% are not sure either way, and 29% are not considering that. Continue Reading…

Graduating from College? Your financial future starts now

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By Jackie Waters

Special to the Financial Independence Hub

Graduating from college is a huge milestone. You’re now ready to start your career, and you’re excited about getting a house or apartment, a car, a new work wardrobe, and more. But all of those things cost money. And don’t forget repaying student loan debt, insurance premiums, utility bills, food costs, and a long list of other expenses. Since you’re facing these new expenses, it’s essential to create a solid financial plan.

Make a budget and manage your debt

Experts recommend starting your monthly budget by thinking of the “50-30-20” rule. After receiving your first paycheck, you’ll know your net income, which is how much you receive after paying taxes and insurance premiums. From your net income, put 50 per cent towards needs such as rent, utilities, and food; another 30 per cent towards non-necessities or “wants;” and the final 20 per cent towards debt repayment and savings. However, if your student loan debt is substantial, flip the percentages so that 30 per cent goes towards debt repayment and savings, and 20 per cent goes towards wants.

Student loans are usually broken up into several loans with varying interest rates. The best way to tack them is to pay off the loans with the highest interest rates first. Pay the minimum towards the balances with the lowest interest rates, and make larger-than-the-minimum payments on the loans with the highest interest rates. “The biggest mistake you can make is paying the minimum into each loan and waiting until you make more money when you’re older to deal with them,” warns Time.

Look to the future

Life is full of unexpected surprises, so an emergency fund is crucial. If your car needed a major repair, if your laptop needed replacing, if you lost your job – what would you do? If you have an emergency fund, you’ll be able to pull from there instead of from your monthly budget. People often face going into debt because they have no way to cover unexpected expenses. To prevent this from happening to you, plan for the unexpected by putting a small amount of each paycheck into a savings account.

Continue Reading…