If you are thinking about going to college, then you know that it’s an expensive endeavor. The cost of school education in Dubai can range between 20,000 AED to 70,000 AED per year.
In the following, we’ll be giving tips on how you can better pay for college without breaking the bank.
1. Cut back daily expenses
The two most common sources of college funds are savings and loans, but another option is to pay for college by cutting back on lifestyle expenses while you’re in school.
Sometimes it’s hard to imagine what it would be like to have less money than you’re used to spending. Maybe you’ve always had an allowance or you’ve worked since you were old enough to get a job.
Either way, once you head off to college, you’ll probably need to cut back on your lifestyle expenses. For instance, instead of eating out every night or ordering takeout, you could cook homemade meals instead.
2. Have investments
Investing is a way to get your money working for you. Putting money in an investment account will help you grow your money over time (though the amount of growth can vary).
Most importantly, the money that you have invested can help cover college expenses.
There are several types of accounts parents and students can open on their payday to invest their money.
They each have different rules and offer different benefits, so it’s essential to understand the differences between them when choosing where to put your money before starting a new account.
As a student, you shouldn’t start in a volatile investment such as cryptocurrency, but since you’re saving for college funds, it’s ideal to start with mutual funds or bonds.
Don’t worry if these terms seem overwhelming to you, as a financial advisor can help explain these terms to you.
3. Think of a passive income
Develop a passive income stream. A passive income stream is money you earn from doing something like investing or leasing properties and then getting paid for that work without putting significant effort into it.
A few passive income examples areas:
- Renting properties
- Investing in stocks, bonds, etc
- Trading forex
- High returns savings accounts
These are just a few examples, but there is a multitude of ways to achieve a passive income. Remember, you want to work on getting a passive income so that money will come to you regularly without making an exhausting effort.
So if your goal is financial independence, try looking for sources of passive income; it’s very low-effort or doesn’t take up much time at all.
Not to mention, if you can afford to invest, passive income is more suitable for students rather than a full-time job with a serious commitment.
4. Take advantage of student loans
Taking out loans is a great way to pay for college. When it comes to education in Dubai, personal and student (or federal) loans are one and the same.
When approving your student loan, they may look at your credit check (e.g credit cards) and collateral. Here are some of the other qualifications for student loans in Dubai:
- A valid passport (original and copy)
- Valid residence visa
- Bank account statement within the last three months (specifically from the bank you want a loan from)
- University ID or enrollment card copy
- Salary certificate
- Bank statement of salary within six months
- Quotation from the university addressed to the bank
5. Consider enrolling in an online school
While few would say that attending an online university is better than attending a brick-and-mortar one, the potential savings make this an incredibly appealing option.
With tuition at about two to four times lower than top traditional schools, online colleges make it easier to earn a degree without breaking the bank.
These savings come with significant benefits like flexibility, making it easier to work while attending school and giving students more control over their learning experience.
A cheaper degree also makes it easier for students to transfer credits between institutions if they decide they want to go back and get another degree later in life.
It would also be easier to get tutoring services in online school compared to face-to-face classes with the flexible schedule you’d have.
Paying for college funds can be extremely stressful when you’re tight on budget. However, with these tips mentioned above, you can successfully pay for your college funds without breaking a sweat.