Last Week, I wrote Part 1 of How to Pay for College, Debt Free. I discussed building up your academic and extra curricular resume, finding scholarships, and applying for the FAFSA.
But graduating college debt free is a big topic and I couldn’t fit it all in one post.
Some people have not had the opportunity to save up for their child’s college education. Other’s feel that it is not their responsibility as the parent.
The fact is: college can be really expensive! But if you plan and put in the work, it can become MUCH less intimidating.
So now, I hope to continue the money saving tips for getting a “Debt Free Degree.” (Check out Anthony ONeal’s book too.)
Choose the Right School
Choosing the right school can make a huge difference in the cost of a college education.
Local Public University
One of the most obvious options to bring down college expenses is to attend a local in-state public university. This choice alone can save thousands of dollars every year compared to attending major private schools or attending as a non-resident in another state.
Paying tuition as an out of state student can almost double tuition in some universities.
Split Between Community College and Public University
Another popular suggestion is to attend the first 2 years of college at a community college and then finish your degree at a larger state university. This can be a huge money saver!
The cost of community college is substancially less for the same basic classes often required freshman and sophmore years at large universities anyways.
But make sure that the University you will be transfering to will accept the credits from the community college. Talk with the University’s counseling office first.
I had a friend try this but did not confirm credit transfer before booking classes and ended up having to take classes over again. Essencially, paying for the same class twice. It sucked.
Consider Less Popular Schools with Better Packages
When looking at colleges, most people look at the big names. These are popular colleges that everyone knows! Harvard. NYU. UC Where ever! Everyone knows these schools and so there’s is a lot of competition to attend.
Just like with a scholarship search, going for the smaller option can often prove fruitful.
Large public schools are often the cheaper option for base tuition cost but smaller, private schools offer a surprising amount of scholarships for students who fit their desired student body.
Good grades, sports, or special activities performed in younger years can all add positive aspects to the school’s student body. They are willing to supply full ride or partial scholarships for these talents. Smaller schools often have fewer students applying for financial aid and are able to give better packages to those who apply.
As long as the small school offers the program you’re looking for, be willing to check out smaller schools. Sometimes they are the better option when you look at the total aid package.
In the end, all that really matters is that you have your degree.
Unless you’re in a very specific career where college names matter, most employers don’t give two hoots where you graduated from; so long you can do the work.
So choose the school that gives you the best financial options for the degree you want.
Take Advantage of Work Study
Work Study is the option to work on campus in order to earn money for tuition.
It is usually offered as part of a financial aid package after filing your FAFSA.
The nice thing about work study is that your boss already knows you’re a student and will work your schedule around your classes. And the jobs are on campus so you can often fit a shift in between classes without needing to commute anywhere.
One of my friends worked in the cafeteria in college. He got all the food he could eat for free. His shifts were during meal times and could easily fit between classes. He earned money for passing out meals and socializing with other students for an hour or two a few times a week.
I got to spend a few terms as an assistant event planner for the athletic department. I got to contact alumni for donations from their businesses and sell tickets to the auction dinners. It was a great way to pad my resume while also making contacts with the community for jobs after graduation.
All while squeezing shifts between classes and getting paid.
Other Ways to Make Money on Campus
In addition to Work Study, there are usually other ways to earn money or at least reduce costs while studying.
I volunteered as a resident juror my freshman year. Once a month, I would spend an hour or two listening to the latest dorm craziness.
We’d decide on appropriate punishments for the guys who threw a mattress out the window or kept playing loud music after quiet hours. It was like getting to watch a TV court drama in first person while getting paid in a free cafeteria meal plan. Pretty sweet.
There are tons of other ways to earn money on campus; you just have to look for what’s available
- Resident Assistant (RA) – be the go to in the dorms for younger students- Free Housing
- Tour Guide for new students
- Teacher’s Assistant (TA)- Get first hand relationships with people in your field while earning money and experience
Just look around and find what piques your interest.
Take Out Loans Responsibly
If, even after all your best efforts to:
- Choose the most financially responsible school
- Get all the scholarships
- And take on work-study or part time jobs
You still think you will need to take on some student loans, make sure you do it responsibly.
The average student loan debt in the US is a little over $37,000.
That’s the average now, many people have lower student debt but many people also have much higher debt.
These crazy amounts of student loan debt become terrible weights on the shoulders of thousands of new graduates every year! Loans can last for years, impacting their ability to purchase homes, build families, and change careers.
So if you do think you need to take on these loans, make sure to keep your total loan balance below the average starting salary for a career in your degree field.
Example
If you are going to school to become a finance manager, making over $90k your first year on the job, having $60,000 in student loans might not be that bad. You could have it paid off in a few years, or even one if you really keep your expenses down.
But if you’re becoming a special education teacher, making only $30k your first year, that $60,000 in student loans will become a huge burden in your life. It could stretch on for decades while you try to grow a financially fit life.
Think Before You Borrow
Before deciding to take on loans make sure to think long and hard about your future:
- What is the starting salary for the field you’re studying? (Don’t borrow more than this amount)
- Are you getting the lowest interest rate possible? (Government vs. Private Loans can differ greatly)
- When does the interest start accruing on this loan? (Some loans don’t accrue interest until after graduation, other start immediately)
- When do you need to begin making payments on this loan? (Immediately after graduation? A few months after graduation? While still in school?)
- How will I pay off this loan if I end up dropping out and not graduating? (The average college dropout rate is 40%! Often due to financial pressures)
Paying for college can become a big pressure point for many families. Like with all things financial: decide what you want and make a plan to execute.
College Isn’t The Only Option
For years, students have been told they need to go to college or they’ll never get a good job. But now, more than ever, this is not true.
During this age of Internet learning, there is not much you can’t become a complete expert in by researching it online for a few weeks or months. (Not a doctor, I guess, but most careers. Heck, someone can probably get pretty good at even some medical procedures and research online if they really wanted to.)
Everything I was taught while getting my Business Degrees, can easily be learned by reading a few of the right books, watching some good YouTube videos, and searching on Google.
Google and other large companies/schools have even created programs to provide certificates and lessons. They are teaching the skills that they want prospective employees to know; skills that can be used across the industry.
Getting Into an Industry
Social Media groups on sites like Facebook and Linked In can help beginners in a field get to know the high rollers and make connections in their industry to get their foot in the door.
Beginners no longer have to rely on a professor’s connections or frat bro’s dad to get into a company. Personal connections do help, so put yourself out there and attend Local Meet-Ups and Career/Industry Events if you need those face-to-face connections.
By practicing skills on sites like Fiverr, young adults can build an entire portfolio, proving their skills, while earning money in the process! They can then present this portfolio to prospective employers as proof of their ability beyond what any college degree can provide.
Bring Back Skilled Trades
As everyone has become college obsessed over the last 30 years, jobs in the Skilled Trade Industry have seemingly been forgotten. But Skilled Trade jobs like Plumbers, Electricians, Carpenters, Stylists, and Mechanics are still highly valued, necessary, and pay well.
If college, or a white-collar office-type job, is just not your cup of tea, then seriously take a look into the Trades Industry.
Most require a few years of training. This is often done as a paid apprenticeship, allowing you to earn money while you master your skills.
Once you have learned the trade and proven your abilities, you become a Journeyman or Professionally Licensed.
From there, you can choose to join a union or open your own business. (Learn how to run your business by researching online, instead of getting a business degree. 😉 )
One of our kids is absolutely adamant that he does NOT want to go to college. It’s just not his thing. But he is researching online, constantly, for all the different opportunities he could pursue.
From running an online business or being an elevator technician to opening a Jiu-Jitsu Academy or becoming a Flight Attendant. There are so many options available to become successful and enjoy your career without needing a college degree.
Wrap-Up
College is a necessary evil for many people. It continues your education and prepares you for a future career.
There is so much a young person can learn in their college years, but it should never cause them to suffer financially for decades after graduation.
Before you even begin applying for your first college, decide what it is you want to study. Too many students enter college “just because its the next step.”
They then either spend years flip flopping on majors or just drop out. Either choice will leave you with unnecessary costs and no closer to an actual degree.
If you’re not sure what you want to study, take a gap year and get involved in the career you’re contemplating. Get some experience to see if you want to spend the thousands of dollars necessary to get a degree for it.
And once you have made your decision, come up with a plan and do the work to earn a debt free degree!
More important than loans!! Set them up for Success! From experience: do not send your child if they do not know what they want to study!
You gain entrance based on your Grade 12 marks BUT if you go and fail out etc, unfortunately those are the marks that will be used to gain entrance if you choose to go back. Too many parents force their child to go right out of high school and then they attend with the wrong mindset. Especially problematic in the USA when kids enter college at 18 and are inexperienced and have access to alcohol etc. and just are not really driven to succeed because the classes they are taking are with no meaningful end goal in mind..
Exactly, Cheryl! So many young kids are forced to go to college right out of high school and end up dropping out or failing because they have no real inspiration to do well and no end goal for those expensive classes. I had friends take 8 years to finish college, just because they kept changing their majors. All that time and money could have been better spent working and gaining experience before deciding on their chosen major.