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As an imaginative and ambitious child, you probably dreamt of graduating from college and landing the perfect job to finance the perfect lifestyle. Wake up, please, because a majority of American college graduates are burdened with an average of $26,000 in student loans (Figures from the U.S Dept of Education). This is not to say that you cannot graduate debt free, because numerous students manage without borrowing a single cent or drowning in debt that will permanently blemish your credit score (read 6 easy ways to improve your credit rating). Below are some tips to graduating without the debt monster chasing you as soon as you get your degree. Whether you study in North America or Europe, these tips are guaranteed to help reduce or eliminate the need for student loans. 1. Minimize Your Tuition Expenses The biggest chunk of your college expenses belongs to tuition fees and the easiest way to fund them is though scholarships, student aid and grants. Cast a wide net when applying for these programs, even if it’s for a paltry sum of $50 or $100 per program - you may be surprised how quickly the numbers add up in the end. Local businesses, charities, religious establishments may offer such help so don’t be afraid to ask. It goes without saying; you need to maintain decent grades to be eligible for academic financial support and complete your degree in the shortest amount of time possible (without switching majors or failing classes). 2. Live at home to cut living expenses The easiest way to cut thousands of dollars from your college expenses is to stay with your family. True, it may not be as thrilling an experience as your classmates may enjoy but you’ll save thousands of by avoiding the university dorm or expensive apartments near your college. Attend a college close to your home, but if staying with mum and dad is not on the cards, consider a low-budget apartment that you share with one or two roommates to divvy up the rent. If you’re up for some extreme adventure, read about the guy who lived in a mini-van while attending university. Surprise! He also graduated without using student loans. 3. Attend college in your home state This point is automatically covered under the previous heading (if you stay at home, your college will most likely be in the same state, unless your house is on the state border!) but deserves a separate heading. Tuition is often less expensive for student who live within the state so look around for the best college available near you, instead of heading straight to far off colleges for the ‘ultimate student experience’ that is riddled with student debt, and long-term stress. 4. Consider Community Colleges Study the first two years at a comprehensive community college and then transfer to a regular college to complete your four-year degree. Although you will still study for a full four year term (2 years at community colleges + 2 years at your regular college), you will save between $7,000 to $15,000 per year (Info USA). 5. Start working as early as possible It’s never too early to start an internship, part-time job or even a full-time summer job to save up for your college education so you don’t have to borrow from banks. If there aren’t any vacancies you fit into, do whatever you can to monetize your interests and hobbies. The added benefit is that all these ventures add to your resume and you’ll have a lot more experience added to your credentials when you start job hunting after graduation. 6. Tuition Assistance from your employer Some well-established companies may pay for your education while you work, but require you to stay on board for a few years to recover the cost of your tuition. If you choose to work someplace else after relying on the tuition assistance program, you may be required to pay back the company, with is only fair because you didn’t have to borrow money or use up your savings. These progressive human resource policies encourage employee growth as well as retention, and offer students a great way to balance their professional and academic lives without being embroiled in student loans. 7. Save, Save and Save Again Many banks offer youth savings accounts (read about the benefits of youth saving programs) which not only teach children about financial discipline, but also provide much-needed support when it’s time to enter college. Save a portion of any income you earn while working prior to your college years and set milestones to stay motivated. You’ll thank yourself later when you graduate without borrowing a penny. 8. Saving on Textbooks Textbooks are expensive. Period. Each year brings along new editions and versions which are barely different from the previous year’s edition, but teachers prescribe them anyway to stay relevant to the changing times. What’s worse, after the semester, the book is useless, unless you wish to keep it for reference sake. Here are some solutions that may work for you: - Buy your textbooks online from retailers that offer discounts, or
- Find an electronic copy of the textbook.
- Ask your tutor if the previous version of the book with suffice and you’re bound to get a significant discount on those.
- Check the college library or ask your seniors for a copy pass down.
9, 10, 11 and 12. Make smart lifestyle choices to avoid taking out credit As obvious as it may seem thanks to media, college is not a time to party. Your main priority is to get an education that promises a decent and stress-free life in the least, a life that is free of debt and unemployment. Here are some other small tips that potentially offer big benefits: - Keep a reasonable entertainment budget and stick to it. If this means you can’t afford to see a movie next Saturday, then don’t. Go hiking with a friend instead, or find some other low-cost healthy activity to entertain you.
- No credit cards – yes debit cards: If you have the ‘option’ of spending more money than you have, you may be tempted to live extravagantly. Debit cards help you control your expenses, so if plastic money is a necessity to you, go with the second option.
- Tax credits: if you happen to live in Canada, you may be entitled to receiving education and textbook tax credits up to 15% per year (the same goes for student loans). The process is fairly simple, as outlined at this Canadian government site.
- Why drive when you can ride? Maintaining cars is expensive (fuel, repair, parking permit, insurance, etc.) so consider using your bike (it’s healthier and cheaper) if you live relatively close to your college.
Too much to handle? These tips may seem difficult but they work. A small portion of students enjoy a debt-free and stress-free education and can now look for the job they ‘want’ instead of the job they ‘need’. You can pursue a lifestyle that isn’t financed by someone else’s money, and hence is waiting to crumble as soon as one domino topples over. There are scores of people who struggle (and I use this term lightly) with student debt – they have to put their life on hold, declare bankruptcy, move to tiny apartments, support a family by taking more debt and what not. If despite all these efforts you’re falling short of funds, you can avail student loans but at least your reliance on them will be minimal and you can easily pay them off. Note: These ideas were compiled from my own experience as well as those of others (Common Cents Wealth, About.com Tuition Assistance, News Articles on US News, The Star and MNHU.
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