Begin your journey of self discovery and limitless possiblities
Education is the most valuable investment anyone can make for themselves. And, like all investments, it isn't without financial peril.
The best way to measure your investing success is by whether you’ve put in place a plan and behavioral discipline that are likely to get you where you want to go. -- Benjamin Graham
About
In 2023, 1 in 100 student loan borrowers have defaulted on their student loans. And, according to the Pew Charitable Trust, over the past twenty years, over one-third of undergraduate borrowers have experienced default, and two-thirds of those borrowers have defaulted more than once.
We at Eudo aim to assist student borrowers understand and estimate their postgraduate financial risks when leveraging student loans to finance their education.
Our name, Eudo, originates from the Greek word εὐοδόω, pronounced yoo-od-o'-o, meaning prosperous journey.
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Financing Your Education
If you’re looking to borrow student loans to help pay for your education, there are several things you need to do and consider. Also, you can use the worksheet to estimate the loan amount and the calculator to evaluate postgraduate financial risk.
The Free Application for Federal Student Aid (FAFSA) is an application completed by current and prospective college undergraduate and graduate students in the United States to determine their eligibility for student financial aid.
You must submit the application to be considered for financial aid, including student loan. It is imperative for students seeking financial aid to submit the form as early as possible. Furthermore, some scholarships require submission of the FAFSA form. Please be advised FAFSA is different from the College Scholarship Service profile (CSS Profile).
Scholarships
Scholarships are a great way to support your education not only because of the money but also for the recognition. Scholarships come in different forms; recipient selection criteria can be based on the applicant's financial needs, academic performance, community service, and or others. The following is a sample of notable scholarships:
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Fulbright Scholarship Program
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Coca-Cola Scholarship
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National Merit Scholarship
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Hispanic Scholarship Fund
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Hope Scholarship
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The Gates Scholarship
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Marshell Scholarship
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Dell Scholarship
Go to the scholarships page to view the full list.
Financial Package
The financial packages from the schools you were accepted will consist of one or more of the components listed below and more. It is important to examine the offers carefully and understand fully how each one of them might impact your educational funding. For example, scholarships and grants may be an one-time support; thus, requiring a greater contributions from other sources in the later years. And, family and personal contribution may be limited due to situations unknown to the schools. Be sure to identify potentials concerns and talk with the school financial office counselors about them. Please don't forget, schools accepted you knowing your financial needs. They will do their best to understand your situation and help you.
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Tuition &
Housing
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Books &
Personal Expenses
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Grants &
Scholarships
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Loans &
Workstudy
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Family Contributions
Savings
You may have access to a 529 Plan or others such as Coverdell Education Savings Account (ESA), mutual funds, saving bonds, UGMAs and UTMAs (Uniform Gift to Minors Act and Uniform Transfers to Minors Act), Roth IRA, and others. If you have personal savings or investment accounts, they can be an excellent funding source for your educational endeavor. Annually, you should evaluate if they are the best sources.
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You need to know account-specific restrictions; for example, funds from Coverdell Education Savings Account should be used by age 30, or there may be tax penalties.
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You need to think about whether your career interest may lead to graduate education, such as master's in business administration or culinary art. You may choose to defer the use of the alternate source depending on the length of your educational aspiration.
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If you have interest-bearing or investment return-generating account, evaluate whether a student loan is cheaper, meaning interest on the loan is less than the returns from your investments. Please note investments doesn't guarantee a good or positive return. And, some type of student loans, interest starts accruing the day one.
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If you liquidate investments to pay for education, the proceeds from the investment account may be taxable.
Please consider all factors when assessing your funding needs and prioritizing which resources to tap and when.
Note: Please be advised the shared links are for general information only. We are not recommending nor are sponsored by the entities.
Student Loan
Typically, the amount of loan a borrower can acquire depends on the borrower's ability to repay the debt in a specified time and available collateral, such as personal assets, including the asset purchased with the borrowed fund.
Federal Student loan doesn't work the same way. Students can borrow up to the maximum, an amount set by the government, without assessment of their circumstances. As a result, some students end up financing more than they can afford after their educational journey ends.
Here, using the simplified risk calculator, students and parents (and guardians) can get a rough estimate of the financial risk the student is taking when borrowing money to fund their education. The full version, on Risk Calculator page, can provide a better estimate.
The following information is required:
1. Academic Status
2. Cumulative loan amount, guesstimate loan issue date, and average interest rate*
3. Geographical area the student plans to live after graduation
4. Post-graduate job title and estimated corresponding salary**
*You do need to provide a loan amount. We recommend using the oldest loan issue date to represent all loans if student borrowed multiple loans.
** Use website such as Indeed.com, Glassdoor.com and others to look up salary information.