Envision Financial Helps Post-Secondary Students Stay Out of the Debt Trap

LANGLEY, BRITISH COLUMBIA--(Marketwire - Sept. 24, 2012) - With the first month of school nearly over, the initial excitement of life on campus may be starting to wear off. For returning students, university life will have become routine, but for those just starting out it's a different story. There are many new experiences and challenges to face, including paying for all the costs associated with post-secondary education. Tuition, books, equipment, student fees, computer programs, lab fees, living expenses-the list can be overwhelming and students who aren't prepared can quickly find themselves running out of money.

"Students should look for funding opportunities as early as possible, and are encouraged to begin their search as early as Grade 10 and 11," says John Boylan, Manager, Student & Financial Awards Services for Kwantlen Polytechnic University. "Too often they wait until the last minute to apply for financial support, leaving them with fewer options."

So what can students do make sure they finish their education without excessive debt?

"People thinking about post-secondary education need to take time to prepare and educate themselves on the total cost of their education," says Michelle van Bakel, Personal Account Manager at Envision Financial. "The key is knowledge and preparation. Although most will come out of post-secondary with some level of debt, there are ways to make sure it doesn't get out of control."

Have a full picture of what you're getting into

Make an assessment of your financial situation and understand what it really costs to be a student. "Many students tend to underestimate what their costs will be," says van Bakel. "Although the large expenses are usually budgeted for, small purchases and unexpected costs add up quickly. Make sure you have a full understanding of exactly what you will be paying for and how you will pay for it, otherwise you're setting yourself up for trouble later on. Most schools have a financial aid office-they can provide you with a realistic estimate of your costs."

Budget and plan a year in advance

A budget is a valuable tool, but saving money and applying for financial assistance and scholarships takes time. "Start saving and planning for how you will pay for school at least a year in advance," suggests van Bakel. "Most scholarships have application deadlines far in advance of the school year, so be aware of when they are so you don't miss your opportunity to apply."

"Budgeting well in advance and keeping track of your savings gives you a good picture of when you're on track and when you're not. That way you can take steps to increase your savings, like finding a second job during the summer or applying for a part-time job on campus during the school year, so you aren't surprised with an unexpected budget shortfall."

Don't take the bait

"It's no secret that credit card companies target university students," says van Bakel. "It may seem like a great idea to have a few thousand extra dollars at your disposal to spend in emergencies, but once you have the card and are feeling a bit stretched, it can be easy to start spending."

"A few quick purchases can quickly turn into a large amount that takes years to pay off and costs you a lot in interest. If you absolutely need a card, make sure you get one with a small limit to lower your potential risk."

If you have the funds, don't waste them

"Students who are fortunate enough to have the money to cover their costs need to make sure they are spending it wisely," cautions van Bakel "It can be overwhelming to suddenly have thousands of dollars at your disposal and managing that money to make sure it lasts the whole year can be a challenge."

"To make sure you don't run out of money halfway through the semester, I suggest allowing yourself a set amount each week, based on your available funds, to spend as you like," continues van Bakel. "Take it out in cash at the beginning of each week and then once you've spent it, you're done until the next week. And remember, the convenience of student loans and lines of credit must be weighed against the reality that at some point, it all needs to be paid back."

"There's no doubt that paying for post-secondary education is a challenging," concludes van Bakel. "But with some careful planning and wise decisions, you can graduate with a lower level of debt, putting you on the path to a brighter financial future."

About Envision Financial

Envision Financial is a division of First West Credit Union, B.C.'s third-largest credit union with 37 branches and 29 insurance offices throughout the Lower Mainland, Fraser Valley, Kitimat and Okanagan, Similkameen and Thompson regions. Led by Launi Skinner, First West has approximately $6.6 billion in assets under administration, over 169,000 members and nearly 1,400 employees. For eight years running, Envision was named one of the 50 Best Employers in Canada. Envision is designated a Caring Company by Imagine Canada.