Students must learn to budget after education report findings

A study by the National Center for Public Policy and Higher Education recently gave the state of Kentucky an ‘F’ in affordability in its National Report Card on Higher Education, according to a Wednesday Kernel article.

The affordability study is measured based on the percentage of the household’s income that goes to pay for higher education. Since Kentucky is one of the poorest states in the country, this grade doesn’t come as much of a surprise. College is becoming increasingly harder to pay for, especially since tuition continues to rise each semester.

The state of the economy isn’t helping things out either. Financial institutions like Fannie Mae and Freddie Mac, among others, have been constantly struggling, making it more difficult for students to get loans.

A higher number of people are choosing to attend college because of the stale economy, but when it is gradually harder to pay for, the whole process creates a vicious cycle of debt and disappointment.

With this increased demand in higher education, it is highly unlikely that the universities will decrease tuition rates, according to Pam Villarreal, senior policy analyst at the National Center for Policy Analysis.

“The problem with universities is that demand is so great there is no incentive to lower prices, no incentive to make college more affordable,” she said.

Since grants and financial aid don’t always cover the entire cost of college, and it doesn’t look like tuition will lower any time soon, it is important for students to cut or lessen spending any way possible.

Try buying used textbooks next semester. They may not look as pretty as the ones marked ‘new’ next to it, but you’ll learn the same information— and save a few hundred dollars in the process. The highlighting and notes of previous students can sometimes be a blessing in disguise.

Another way to cut spending would be to not frequent the bars. Not drinking is probably not an option for many, but try having a small house party with some friends instead. That way, everyone can contribute a few dollars to the expenses. Those $6 beers at the bar are sure to drain your wallet quickly. If you enjoy the bar scene, though, try finding the specials around town during the week.

If you pay your own bills, think about the electricity in everything you do. You don’t really need the heat on 73, knock it down and put a sweatshirt on. One degree makes a difference.

Food is another way ease up on your bank account. It’s not necessary to eat out every day— there are grocery stores for a reason. Also, do you really need that overpriced coffee from Starbucks? Making your own is surely a better option.

While costs keep increasing, look for any way to control your spending habits. Until prices start falling, two words should become your best friend: ramen noodles.