How to Plan for Further Education

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Education may be very expensive.

It depends on where you live, is it a private or public school and are you a foreign student. Other issues may also come into play.

The average student in America graduates with an average debt of over $29,000 in 2018. That means two things.

One: there is a really big need to figure out how much debt you really want to be burdened with when you graduate

Two: how can you reduce that amount if it is unreasonable.

The challenges to plan and pay for further education on a financial level may be difficult. Planning a course is just a start. Finding a school and how to afford all of the expenses means figuring out what all of those expenses may be. Each person must look at the common denominators for costs when it comes to add expenses of different sections, which mainly are:

  1. Living expenses (food, rent, etc)
  2. University fees (i.e. general admission)-
  3. University courses (course fee, books etc.)

Not only do these types of expenses vary considerably depending on school and city you choose, but they are also challenging to budget because a lot of expenses occur as lump sums while others have to be paid for on a monthly basis. Some of the costs will be relevant all year round (health insurance or food), but some might change during summer/spring break when many students move back home.
Let's consider the three expense categories one after the other:

1. Living expenses

Since housing costs are on the rise, many students are forced to or decide to stay at home with their parents for the time of their secondary (college) education. This is of course the less expensive alternative. However, if the idea is to relocate and rent, the following factors should be considered:

Accommodation

Staying at home mean very little additional costs. Moving on campus would likely mean some costs to either fix up the room a bit (personal touches), bring in some utensils and cookware, TV. Moving to a rental unit would obviously add the most costs but they will depend on whether the unit is furnished or unfurnished. Apart from the monthly rent, include utilities in your calculation.

Starting your Household

Household items, grooming and medicinal products might be needed if moving out. Utilities such as cablevision, internet and telephone may cost more depending on what is included in the accommodations.
Food will always be a concern. Just going to any school means eating at the cafeteria on campus, take-out or cooking. Add these costs to the estimate.

Transportation

Relocating to the college or to a new city will necessitate extra transportation costs. It could mean costs for public transit, getting a bike, scooter or vehicle, even the odd flight home for holidays. Transportation could be a cheap addition or an expensive addition. Add these costs to the estimate.

2. University Fees

As with housing, for general university considerations, the family budget and whether the student has a job will likely dictate whether the school will be close by or far away and whether it will be a regular college, a vocational school or a major school.
University application fees, campus fees, bus passes & health care plans might be included in the overall package that makes up for the general costs to applying for a certain university.
While living expenses usually occur on a monthly basis, it is important to understand that a bulk of university fees will occur annually, by semester or trimester. Apart from the total amount that needs to be saved for further education, it is therefore also important to make sure that at certain times of the year there are sufficient funds to cover these (often considerable) one-off fees.

3. University Courses

Depending on the direction your further education should go, it makes a lot of sense to draw out a long- term plan of which courses you're planning to take each semester. Clearly, these plans might vary over time, but to have a well thought out through plan will help avoid wasted funds on courses that are not necessary to achieve the goal you set for yourself.

A visit with a career counselor at the university before starting will help figure out what courses are necessary and which are not.

In general, the following expenses can be expected:

  • Tuition per course
  • Costs for books and study material
  • Costs for equipment

Some of the issues to search out are:

  • Course Costs - Required vs Elective courses (which courses are essential to my education)
  • Credits - The more courses are taken by semester the more expensive it gets, however, it might shorten the overall time of studying.
  • Course Duration - More years in school will add significantly to the costs.
  • Books/Stationery - Books/equipment will be more expensive for some courses than for others. Look for a used book, ebooks, borrowing. 

Strategies to make it work

Since further education can be so overwhelmingly expensive, people often consider a loan. If this is the case, it means that after years of studying and exams the next step includes trying to pay back a loan, which can be a long frustrating process.

While many have accepted this fact as a normal consequence of getting a higher education, it is wise to keep these loans, if at all necessary, as low as possible.

Typical steps to setting up Further Education

  • Choose a Course. 
  • Compare Colleges/Universities - by Tuition, Course Duration, Payment types. 
  • Course Material Costs - books/equipment/computer, may be very expensive. Consider alternatives (used, borrowing, ebooks).  
  • Estimate the Expenses - Put these costs together to form a foundation. This will help give an idea whether the school can be close or away.
  • Scholarships/Grants - are you eligible? If possible check out scholarships and grants, bursaries and a loan as well. These could bring down or raise the cost of schooling.

Obviously then, the lowest amount possible is the goal. Here's how to do it:

+++Katja; should this section be here or should it be after the next section 'Comparing your Options' - I think it should be moved+++

  1. Find a job to offset expenses and keep loans down.
  2. Identify any grants or scholarships to keep the loans down?
  3. Keep any loans as low as possible. Who wants to start out with a loan to pay? Find a school close to home that is easy to access thus reducing housing costs and transportation.
  4. Figure out how to take some courses at a local college that are less expensive yet accredited at higher level schools.
  5. Save on rent by co-habitating
  6. Take a job for a year and save money so smaller loans are needed

Compare your Options

A good way to get an overview of what to expect is to create a list like the one below. Then fill in information for every option you have in you are taking into consideration:

  • Yearly Costs - Course tuitions, accommodations, transportation, food.
  • Books/equipment - by the term
  • Electronics - Computer, tablets, accessories, usually a one-time expense. 
  • Household items
  • Loan payback

Add up the costs then subtract any income from jobs or grants/scholarships

Note that each country and state has its own education programs. Check costs and available funds. 

Remember: The budget is not enough. You need to have acceptance from the institution.

Check this article on Forbes - Applications and Admissions 

Further links for further education by country:

    Canada

    United States

    Britain

    Australia

    +++link to our Further Eduation Planner+++  - should this be here???