ELFI customer service will be closed on Saturday, July 4 in observance of Independence Day. Our offices will reopen on Sunday, July 5.
X
×
TAGS
For College

Benefits and Savings of Completing College Early

April 1, 2019

People usually think of completing college in four years as a typical timeline. In reality, many undergrads find that working in the summer or studying abroad can add extra time to getting their degree. According to the NY Times, only 19% of college graduates at public universities finish a Bachelor’s Degree in four years. Most experts use the timeline of six years to complete a Bachelor’s and three years to complete an Associate’s Degree. There’s nothing wrong with taking more time, but there are advantages to getting college completed early. Here are some reasons you may want to take an extra class each semester or stay on campus for summer classes to finish early.

 

Less time in school means less money spent on college.

Think about the extra fees you pay each semester. From parking permits, recreation center fees, and fees charged per department. The longer that you’re in school for, the more you will end up paying in fees. Taking more classes at once won’t save you on overall tuition necessarily. Taking more classes will lower the amount you’re paying for being in school, over time. Plus, tuition has the tendency to go up over time, and rarely goes down. Therefore, taking more classes now could save you on tuition in the long run since you’ll avoid rate hikes.

 

The cost of college will depend on the type of college you attend. The cost difference between public school and private schools may be surprising. When looking at the cost of public schools whether a college is in-state or out-of-state from your current residence will also play a role in the cost. We broke down the cost of college into three separate categories public in-state, public out-of-state or (public OOS) as can be seen below, and private. We calculated the costs for a 4-year completion, 5-year completion, and 6-year completion. These costs were based on averages provided by Value Penguin.

 

 

The below graph shows what the cost for 6 years of school will ultimately cost the borrower at each of these three types of colleges. The cost of a private college for six years equates to the cost of a Rolls Royce Wraith. Just to put that in perspective for you, Gwen Stefani the previous singer of the band No Doubt owns this car. It’s important to understand if something like studying abroad will set you back a semester or not. Yes, studying abroad is a great experience, but are you prepared to tackle the debt that may come along with delaying your academic career?

6-Year Costs of College

Public In-State School – $172,277.15

Public Out-Of-State School – $266,177.15

Private School – $325,937.15

 

 

The overall cost of college can seem overwhelming, but it’s important to understand what you’re spending by staying in school longer. It will help you to understand if the cost of an education is worth the field that you are studying to enter into. In addition, the college that you choose will have an impact on what you have to pay to achieve that education. For example, if it takes you five years to graduate there could be a price difference of about $128,050.00. The cost of college really is impacted by the type of school you choose in addition to the amount of time you spend there.

 

5-Year Costs of College

Public In-State School – $142,255.75

Public Out-Of-State School – $220,505.75

Private School – $270,305.75

 

It’s tough these days to graduate from college in 4 years, but it’s still doable. If you work closely with your counselor and study hard you’ll be on the right track. If you need summer classes they are typically available as well.

 

4-Year Costs of College

Public In-State School – $112,799.70

Public Out-Of-State School – $175,399.70

Private School – $215,239.70

 

If you enter college determined and know what you want to do, it will save you a decent amount of money. The difference between graduating in four and six years can be extreme in some cases. Below is an illustration of the cost difference between four and six years. Notice the cost difference specifically between a public out-of-state school and a private school.

 

Cost Difference Between 4 Years & 6 Years

Public In-State School – $59,477.45

Public Out-Of-State School – $90,777.45

Private School – $110,697.45

 

One of the most important parts of preparing for college is understanding how you will pay for it, how long you’ll be in school for, and if you can graduate early. If you have the ability to graduate early you should certainly consider it. At the same time, it’s important that you don’t overwhelm yourself.

 

Get to work, work, work, work, work.

It’s hard to apply for a job and commit to a typical work schedule when you’re still in school. If you can work throughout school and put contributions to your loans that is a great thing to do. If you can’t work at a traditional job, that’s okay too, but be sure that you are doing all the work you can to finish early. Completing your degree earlier can give you the ability to start looking for a job in your career field earlier. That extra year or two of working at a professional career job will put you at an advantage.

 

Bring home the (much better) bacon.

With your degree completed, it’s likely that you’ll qualify for higher-paying positions in your field. If you already have a job that you like and want to stay with the same company, chances are you’ll be worth more once you’ve got that degree in your hand.

 

Find more time.

When you’re done with school, you’ll have more time to work, build your resume, or balance commitments with life. Lots of students experience burnout, especially when they’re working while going to school, or taking a heavy study load. Add things like internships and clubs to that list and it just sounds overwhelming. Post-college, you will likely have more time to balance working, taking care of yourself, and pursuing other hobbies. Working full-time is still a commitment, but compared to working, taking 18 credits, and being in a student org. graduating might feel like a relief to your schedule.

 

Spend less money on college living.

It might make sense to have a meal plan or live on campus while you’re in school. Be aware those things are notoriously more expensive than how the rest of your community probably lives. By getting a shared apartment with friends or other young professionals, meal planning each week and doing your own shopping – you can usually save money.

 

Have more control over your schedule.

You know how it goes with classes. Sometimes you try to fit all of your classes into two days so you can have more free time. Try using your free time to work or study on days off. Coming across a required class that doesn’t pair with your schedule can ruin a lot of possibilities. By graduating, you’ll have fewer of those college-imposed restrictions on your time.

 

Get on with adulting!

Sure, many of us joke about the downsides of adulting, but it’s also nice to pick where you live and what you do. You can make choices like how to budget and what your financial and personal goals are. If you’re in a relationship, you can decide together what the next chapter holds or start making bigger plans together. If you’re unattached, you can go anywhere and don’t have to worry about credits transferring. The world is your oyster!

 

There are some instances where it absolutely makes sense to slow down your progress toward a degree. It’s okay if you need to take more than the typical two- or four-year (or even three- or six-year) track. Working parents or non-traditional students may find they can comfortably handle a half-time load with their other commitments. A full-time course schedule may be impossible to maintain for them. If you’re already working in a job that you like and are getting reimbursed for school, going at a slower pace could actually put you at a tax advantage. Not to mention some people take fewer classes at a time so they can pay more out of pocket and take out less in student loans. You should choose what works for you and helps you progress toward the ultimate goal of getting the education to support your dreams. Just make sure you have a plan that works for you and keeps you motivated to graduate!

 

Here’s How to Cut A Budget

 

NOTICE: Third Party Web Sites
Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – The bank is not responsible for the content. Please contact us with any concerns or comments.

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *

2020 graduate cap
2020-06-10
Tips for 2020 Graduates Entering the Job Market

While your last semester may have been online, you’ve graduated nonetheless, and you’re finally ready to head out into the world and face the job market. After graduating amidst a global pandemic, you may feel a bit uncertain about your job prospects coming out of college. The fact is you’re entering the job market at a somewhat inopportune time – job openings on Glassdoor have dropped 20.5% after all, and articles are published weekly on the status of the 2020 graduate. However, there’s no need to panic. We’re here to tell you that you’re more prepared than you think, and there are still jobs out there for you. But just in case you feel uncertain, we’ve compiled 5 tips to help you seamlessly enter the job market.  

Be Practical

It’s no secret that the economy is on somewhat shaky footing, making it a little more difficult than usual to get that perfect job. Obviously, that perfect job is the ideal, but now is the time to be practical and expand your job search. Look in areas that you may not have considered before or in fields other than your major. These may be lower-paying than you’d hope for, but the work experience is still valuable, and stepping out of your comfort zone won’t go unnoticed when pursuing future opportunities. Search on job sites like Indeed for entry-level jobs and work from there. Your college also likely has a career center that can help you find employment. Reach out to them to see what help they can offer. Many colleges have partnered with platforms like Handshake that serve to link students with employers.  

Acquire Skills

If you want to hold out for a job in your chosen field, that is not necessarily a bad thing. Now is the perfect time to acquire skills that your employers will find valuable and that will benefit you in the long run. You might take this time to practice job interviews to improve your interview skills. The more interviews you do, the more comfortable you will be during them. As such, never turn one down, even if you aren’t interested. It’s still worth gaining the experience. As for skills that will make you more appealing to prospective employers, sites like Linkedin Learning can help you brush up on things you know or help you pick up new skills. Online classes can also serve as a way to pass the time while acquiring new skills. While building new skills doesn’t bring in immediate income, these skills will serve to make you more valuable to a prospective employer and could improve your income in the future.  

Polish What Employers Will See

Employers see a wide variety of things when looking at a prospective candidate. The resume is perhaps one of the most important. Now is the time to perfect your resume. Add in any relevant work experience you may have forgotten to add. Do some research on what employers are looking for on a resume. This should be an ongoing process. Your resume should be constantly evolving as you acquire new skills and experiences. Likewise, this is the perfect time to get your social media profiles polished. Many employers use social media as a vetting tool for prospective employees. Remove any material that could hinder you from being hired, and, in particular, get your Linkedin profile as professional and complete as possible. Employers love Linkedin, and as more and more of the hiring process is moved online, it has become an invaluable tool for them to look at prospective hires. Thus, it is important for your Linkedin to be filled out and representative of you and your workplace skills  

Expand Your Circle

As important as your skills, networking is essential is you are in the job market. Particularly in these uncertain times, an effective network can mean the difference between being employed and not. Reach out to people in your field via Linkedin or other social media outlets. Ask questions and demonstrate your interest. You may be able to get an interview with them. Even if a job doesn’t come of it, your demonstrated interest will place you in the back of their minds as well as provide you with valuable interview experience. Similarly, interacting with people within your prospective field on any of your social media platforms is beneficial to you. Employers want to see that you are engaged within the wider community of the field. Also, be sure to attend virtual industry meetups and conventions. The importance of becoming involved cannot be understated.  

Persevere

It’s important to treat your job search as a job because, for a time, it is your job. Stay at it, and constantly be reaching out to prospective employers. It can be hard to stay motivated in the job search, but remember that this is necessary. Plan out your job search and keep track of the contacts you make. They could be useful later on. Make sure to take breaks when necessary. Like any job, the job search is tiring and can lead to burnout, so make sure that you rest between sending out those surges of applications. Eventually, you will make it.   Congratulations on graduating. Now for your next challenge. It would be a lie to claim this as a great time to enter the job market, and it is certainly an unfortunate time for you to graduate. The job search will be difficult, but by working hard and following these five tips, you could certainly still succeed. You can do it. If you’re looking for more post-graduation tips, we’ve got you covered. Check out this article on saving money after graduation.  
  Notice About Third Party Websites: Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – the bank is not responsible for the content. Please contact us with any concerns or comments.
college student refinancing student loans
2020-05-26
Can You Refinance Student Loans While in School?

If you have student loans you probably have wondered what’s the best way to handle them. Should you wait to pay them after graduation or start paying them while in school? Or maybe you have heard about student loan refinancing and are wondering if it is right for you. Read on to find out one way you can manage your student loans that will benefit you right now.  

What is Student Loan Refinancing?

When you refinance student loans you take out a new loan to pay off one or multiple federal or private student loans. You will have a new loan term and presumably a lower interest rate. You can refinance to a new loan with the same amount of years left as your old loan or stretch out the term to allow a longer time for repayment. If you increase the amount of time to repay this will lower your monthly payment but likely will cause you to pay more interest over the loan term.   

Can You Refinance Student Loans While in School?  

The short answer is yes, but it may be difficult to find a lender that you can refinance with if you are still in college. Many lenders require a Bachelor’s degree as an eligibility requirement for refinancing. The other
requirements to refinance* with ELFI include: 
  • You must have a credit score of at least 680 and a minimum yearly income of $35,000. 
  • Must have a minimum credit history of 36 months.
  • Must be a U.S. citizen, the age of majority. 
  If you cannot currently meet these requirements, you can have a cosigner that fits these requirements.     If you have federal student loans some may argue you should wait to refinance them until you graduate because they offer more flexibility with deferment and forbearance. However, some private lenders also offer deferment and forbearance options. Some other things to consider are:
  • If you think you will get a job in the public sector that would qualify for Public Service Loan Forgiveness, you may not want to refinance because you would lose the benefit of having your federal student loans forgiven under the program. 
  • If you think you will want to take advantage of an income-driven repayment plan when you graduate, you may not want to refinance because this is only offered for federal student loans. Tip: Be aware that when you take advantage of income-driven repayment plans, your monthly payment is lower, but you will end up paying more for the loan in interest costs.   
  There are many benefits to refinancing while in school to put you on a better financial path when you graduate. The average college graduate has $31,172 in student loans. However, you can work to reduce that amount by refinancing. Student loan refinancing can be beneficial for many reasons: 
  • Consolidate - Refinancing allows you to consolidate multiple federal and private student loans into one new loan. You can refinance some or all of your loans. Consolidation makes it easier to manage one loan as opposed to multiple loans. With only one loan you will be less likely to miss a due date, and avoid any associated late fees. 
  • Lowers Interest Rate - When you refinance you can potentially qualify for a lower interest rate. A lower interest rate saves you in interest costs over the life of the loan. 
    • If you have unsubsidized federal student loans (the ones where interest accrues while you are in school) your loans could be growing by an average of 4.53%. But if you refinance you may qualify for a lower rate, as low as 3.86%, and less interest would be accruing. 
  • Lower Monthly Payment - If you score a lower interest rate when you refinance you will be paying a lower monthly payment. To find out how much you could potentially save, use our Student Loan Refinance Calculator.*  
  • New Lender - Do you always have trouble with customer service when you want to ask a question about your loan? When you refinance, you can get a new lender if you choose. It’s great to find a lender with high customer reviews. At ELFI we pride ourselves on providing award-winning customer service. 
  • Fixed Interest Rate - if you have a loan with a variable interest rate it may be more advantageous to refinance and lock in a fixed interest rate. With a variable interest rate your payment can increase when interest rates increase, which could put a financial strain on your budget. 
  Important tip: if you refinance while in school and after graduation your credit score and income increase, you can always try refinancing your loan again to possibly get an even lower rate.*   

Conclusion

Researching how to handle your student loans while still in school is a great initiative to set yourself up for a strong financial future after graduation. Student loans may seem like a heavy burden, but utilizing resources available to you will make the monthly payments easier on your budget.  
  *Subject to credit approval. Terms and conditions apply.   Notice About Third Party Websites: Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – the bank is not responsible for the content. Please contact us with any concerns or comments.
Former UT athletes obtain graduate degrees through the SouthEast Bank RAC Program.
2020-05-08
ELFI Parent Company Helps Former Student-Athletes Obtain Degrees

Empowering others to reach their full academic potential is an integral part of Education Loan Finance's mission, and this extends to its parent company, SouthEast Bank.   This was shown in a recent UTSports.com article highlighting how several former standout University of Tennessee athletes are set to complete their undergraduate degrees after putting their education on hold to pursue professional sports careers – these athletes, including former NFL wide receiver Peerless Price, were able to obtain their degrees with the help of the SouthEast Bank Renewing Academic Commitment (RAC) program, which helps former University of Tennessee student-athletes return to the university to complete their undergraduate studies.    As a company, we are proud to empower these individuals in achieving their academic goals and we congratulate them for their achievements both on the playing field and in the classroom.   Read the SouthEast Bank blog for more details on how this program has helped former University of Tennessee student-athletes achieve their academic goals.  
  Notice About Third Party Websites: Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – the bank is not responsible for the content. Please contact us with any concerns or comments.