College can be a very expensive investment, and many graduates are crippled by college debt that will remain with them for decades after school. The good news is that most students can avoid crippling school debt with some careful planning and consideration before they even attend their first class.

School Choice and Degree Profitability

The number one cause of crippling student debt is when a student graduates and is unable to find a job in their field that will repay the debt. While getting a good job is definitely not a sure thing in the current job market, there are a number of ways students can improve their chances to avoiding this scenario. The first is with school choice. Not all colleges are created equal, and some are far more expensive than others. Students must think realistically about how they will pay for a top tier school, or elect for a more conservatively priced campus that still has a good reputation and placement rate. Whatever campus they choose, students should look closely at the job placement statistics for their school and gather other data about the income of recent graduates from outside sources.

The second best way to cut school debt before you even enroll is to have a clear plan and choose a profitable degree path right from the outset. As much as you may love studying history, for example, majors in history, archaeology or the like pay very poorly and have few jobs. While it is important to choose a degree you enjoy, it is equally important to choose one that will ultimately the pay the bills.

Many students also waste thousands of dollars in their first year or two trying to figure out what degree they want. This is a massive waste from a financial standpoint. It is okay to get general education classes out of the way if you are unsure about your degree, but do not tinker with specialized classes. It is always better to have a clear goal. Do your degree research before you attend school.

Managing Loans and Financial Aid

Financial aid is the next biggest stumbling block for students. Loans often cover a significant chunk of school expenses, but it is important to be a smart borrower. The federal government offers various types of loans, available to basically all students, to cover all college expenses in one way or another. These Stafford Loans, whether or not they are subsidized, will have far better interest rates than private loans. There is basically no reason to ever take out a private school loan.

It is also important to secure as much money as possible from grants or scholarships. Academic or service related scholarships take work, but they are rather plentiful if students are willing to put in the time. Always find out what scholarships are offered by the college itself. Students with lower incomes can often get grants and other forms of free money through federal and state programs.