Folks, I may not be wise yet, but I do know one thing. Graduating with college debt is a terrible thing. And as the dollar amount gets higher, the consequences become more and more soul-crushing.
There are so many ways to rack up debt while going to college, and so many ways to rationalize that doing so is a good idea.
I, Someday Wise, went to college back in the 1980’s, when state universities were drastically cheaper than small private colleges. I still had to work hard to avoid a lot of debt. Here’s how I did it.
Here in Someday Wiseland, I’ve written not just one, but several posts on avoiding college debt. The why’s, the how’s, the who’s, and the rest of the w’s. This post is just a sort of overview on a few of those with lots of links below for more discussions on college-debt related topics.
WHY? When you graduate from college you are very likely to have trouble getting your first job, and earning what you think you deserve. Trust me. I will eventually post about how to improve your odds there as well. For now, however, just assume that you will someday graduate from college with a degree. Let’s say a bachelor’s degree, just to start the conversation. Further assume that you will NOT get a high paying job right away in a field that fits your degree. What are you going to do about the debt? If you don’t have debt, or don’t have very much of it, you can avoid (or at least minimize) this potential problem.
HOW? So many ways. Bit of an overview here, but lots more detail in follow up posts.
AP, CLEP, and Dual Credit programs are good places to start. Since I originally posted, Modern States https://modernstates.org/ has created a brilliant program to complete enough alternative credit to cover the first year of college, including online classes to prepare, and they cover the cost of the exams. This has made an already good deal an incredibly good deal. **IMPORTANT – most colleges have a limit on how much of this kind of credit they will accept. Here is a great post on alternative credit: https://study.com/resources/ultimate-guide-to-alterntive-college-credit.html
Another good way to save on your college degree is to complete an associate’s transfer degree at your local community college. Not only do you typically save on living expenses by staying at home, you actually earn an extra degree that most people don’t get at a four-year college or university, and in many cases this may be an easier and less stressful transition than going directly to a 4 year institution.
I will also be talking about scholarships but it is important to realize that when a private college talks about giving you a $30,000 scholarship, you still could end up owing a surprisingly huge amount of money. Same with full-tuition residential colleges that require you to pay for a room and board plan.
There are some online colleges with novel business models that potentially can make your degree very affordable. These are the disruptors. A couple of examples are University of the People and Western Governors University.
WHO? Who does this, and who should do this? Plenty of people do it. I knew someone who graduated high school with an associate’s degree. In fact, my own teenager goes to a public high school that allows juniors and seniors to to to the local community college full time, and they pay for it. Mostly these kids are just choosing to do senior year, but I expect this to change as people become more aware of the option. Still get to do activities at the high school and graduate with the class.
There seems to be a bit of bias that people without better options go to community college, but that is false. Smart people who understand money go to community college. Of course, if you really do have a full ride, all tuition and fees, to a four year college or university, there is nothing wrong with accepting it. But I have known many people with excellent financial aid packages who still ended up graduating with quite a bit of debt.
In my real life, I have discussed this point of view with many people, recommended they consider this path for their own kids. It’s interesting how many discount such an option.
They all have reasons why that would be a bad choice in their situation. Like me, they don’t want to be told what to do. Maybe their kid wants to study some specialty, like Flute, that the local community college doesn’t really cover, or something about the “college experience” that will only be realized from the full four year on campus option.
And you know what? That’s fine if it’s what they want to do. This advice is not really for people who want to borrow the cost of a home to get a Flute degree in the first place. But if those same Flautists wanted to save at least some money, they almost certainly could do so using a mix of the strategies provided here.
Link to any of the posts below for more information about college debt, and have a nice day!
Let’s Get Serious About College Debt
Avoid College Debt with Community College
Community College and Chargebacks
Why get an Associate’s Degree from Community College?
How I graduated college debt free
Become a Doctor without College Debt
Study Abroad Without College Debt
Avoiding College Debt (potentially) with alternative credit
Avoiding College Debt: What if you don’t really need that MBA?
Avoid College Debt: What do you plan to do with your college education?
Someday Wise 