Can you graduate college debt free

At some point in time, you, your spouse, or some of your children will make the decision to go to college. Congratulations! That’s a great idea. There are studies that prove the average college graduate earns more money than many people who are not college graduates. There is a problem, however. Before you can start earning that good money, you have to fund the education. A college education is expensive. Many people go deep into debt in order to graduate. But…do you have to? Can you graduate college debt free? Yes, you can—if you’re frugal and plan ahead.

You can graduate college debt free. I will require some planning and taking action.

Not all college students recognize how serious debt is, or how important it’s to graduate college debt free.   Years ago (I’m talking late 1990s), I talked to a student who was graduating with a degree in dentistry. At that time, he was in debt more than $200,000 dollars. That figure included both school and living expenses. He sort of laughed about it: “After all, dentists tend to make a lot of money.”

As I was preparing to write this post, I did a quick check on the current cost for that 4-year degree (and the associated expenses). Well…they’ve about doubled. Two hundred or four hundred thousand dollars! I don’t think I’d be laughing about either sum. Also, in the intervening years the percentage of dentists to population has increased, so while dentists still make good money, the rate at which they accumulate wealth may not be as rapid as it was twenty years ago. And remember, when it comes time to pay off that debt, interest will be added to what is owed.

There are two major reasons to graduate college debt free: The first is that you have to pay the money back, and who wants to be strapped with an enormous bill like that at the beginning of their working life? The second is that if you don’t repay the loan, your lenders can make life very difficult. Lending institutions can garnish your wages, put a lean on any property you might own, prevent you from purchasing a home or vehicle, and sue you. There is a lot that can be done to make your life miserable. Can you be arrested and sent to jail? At this time, the answer is no, but lending institutions can take you to court, which is costly and will do nothing to improve your financial situation. Don’t ignore your college loans.

This subject “Can you graduate from college debt free?” will be the topic of a series of posts all related to graduating without incurring debt. Right now, I’d like to give you a list of practices (some of which could be implemented immediately) to aid in avoiding indebtedness as you get an education.

You can graduate college debt free

Save your money: Be frugal. Don’t spend money just because you have it now. Without a plan that they adhere to, by the end of payday, most

A debt free college education is acheiveable.

people don’t have a lot left over. So, in order to make your funds go farther, you need to budget your money, and be frugal.

Make a budget: I can hear the groans now…but a budget will help you plan for future expenses. If you’re going to have to pay to go to college, why not save the money for your education now instead of borrowing it and going into debt when the time comes?

You know that word “time” brings something to mind: We schedule our time to make the best use of it. Schedule your money the same way. Note: I’m not saying you need to forgo all enjoyment of life now, but make it part of a whole life plan. Make a budget and live by it.

If you’re on your own, get a roommate: Picking the right roommate can be tricky, but you come from a family. You already know what you want and don’t want in the people that live closest to you. You also know what is expected of you and what your responsibilities are. Look for a roommate that will help you achieve what you are striving for even if it’s just that they pay their share of the rent on time, and (if you are in school) help maintain an environment in which you can study. Choose roommates that will respect your needs. By the way, even if you are living in-family, it might be possible to take on a boarder (maybe a student?) and bank the rent.

Use coupons: Buy only items you normally use. When using coupons remember, it’s only a good deal if you would have bought that item anyway. It gets you’re the item for less than you usually pay.

Walk, ride a bicycle, or take public transportation: Owning a car is expensive even if you own it out right. There are additional costs that go along with having an automobile insurance, gas, parking, and repairs. You can save a lot of money if you walk, ride a bicycle, or take public transportation.

When you get to school buy used text books: The need to be frugal and save money doesn’t end once you’re on campus. Text books are required and they are expensive. Usually, you can’t avoid buying them. As you would with anything else, shop around. Some campus bookstores offer used books as well as new. Also, many textbooks can be ordered from online sites, but buying directly from a student that just finished the class you’ll be taking may be your least expensive option.

The above are small things you can do to keep costs down so you can graduate college debt free. I’d also like to bring up a couple of major issues to consider:

A debt free college degree is obtainable.

Type of institution: So many people can’t get past the idea of going to a university. And, yes, many professions require a four-year degree, but think about attending a junior college for the first couple of years. It’s amazing how much it costs to attend a university in comparison to attending a community college. By taking most of your general classes at a junior college and transferring the credits to a university to finish your degree, you can save a lot of money. Depending on your major it may even be possible take some of the early classes required for the major and transfer them too. However, before you enroll in a junior college, you do need to insure the university you plan to attend will accept those credits. Communicate with the university is the key to doing this successfully. (This is an easy tip to verify: Do a comparison of the cost-per-hour for classes. Also, most people live at home—a money saver in itself—while attending a community college. That’s not as true of the student population at a university.)

Residency: Some states give residents a financial break (in state rates) when they attend a local college/university. Actually, some community (junior) colleges do this too. There are a different tuition rates, one for in state (resident) students and one for out of state students at the 4-year schools. For the junior colleges, the lesser rate is often available only to residents of the same county in which the school is based.

If you’re planning to go out of state for school, contact that school and find the policy on in state/out of state tuition rates. If there is a difference, it’s not unheard of to move in order to take advantage of in state rates. Just be sure the move is really worth it: How long do you need to live in the state before you are a resident? (Sometimes it’s more than a year.) I’ve seen other requirements too: local mailing address, house payment or lease records, local utility bills in your name, in state car registration, work history, health insurance. Some of them seem odd or excessive, but the object is to ensure you are actually a resident.

Also, if you’ve already been in the workforce for a while, another thing to consider is the ease or trouble of finding a new job. Can you afford it to live in a new place without an income? Remember, you want to be debt free when you graduate.

Conclusion

I’ve just given you a number of ways to save money. Some of them are effective whether college is in your future (yours or one you’ll finance) or not. Most are definitely directed at the college bound. I really want you to realize that college is expensive, but you can do a lot to lessen the financial impact. It will take making and executing a plan that incorporates just about every aspect of life—and it needs to be in effect long before the day you “head off to school.” To that end, my next several posts will address developing that plan.  Yes you can graduate college debt free.

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