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How I Graduated College Debt Free
Just a few years ago I walked across the stage of my alma mater with a smile on my face – and, no, it was not because I finally completed my degree.
I graduated debt free.
I was told that unless I had rich parents or a 36 on my ACT, there was no chance of getting out of college without a government loan wrapped around my finger.
Yet, I used a method that truly worked for me and can easily work for you!
Thing is, student debt is at an all-time high. The last thing you need is to join the absolute madness that is over 1.5 trillion in loan debt in America!
Student Debt Can Destroy Your Finances
On this blog I go on and on about the importance of paying off debt fast.
If you’re young and new to this, be sure to check out Dave Ramsey’s Money Makeover or learn here to better understand your personal finances.
The average cost to attend a public college is approximately $36,000 and $120,000 for private colleges.
Money gurus like Dave Ramsey will tell you that you should not go to college unless you can pay for it or if your degree is absolutely necessary to do a specific job.
To go into my field of study within the health professions, I needed a degree. I had attended Financial Peace University and I had an intense passion to find a way to afford $30,000.
You can learn how to budget, but that can only get you so far…
Read on to learn the exact steps I took to pay for my entire undergrad experience – without worry about having crippling debt after graduation.
Americans owe over 1.5 trillion in student debt
#1. Live Like No One Else
This part is hard for some to swallow but critical to have an open mind.
There is a fascinating book called Set for Life that goes into intense detail about how to save money, live cheap, and have no debt. Here I will go through steps that I personally took to graduate debt free!
Tip 1: Choose a small(er) college
Sure, it is cool to go to the big state college, or to attend a famous private college. But, you must ask yourself if it is worth going into tens or hundreds of thousands in debt for it. Mom and dad most likely don’t have $60,000 sitting in their bank to hand to the University! If they did, you probably wouldn’t be reading this article!
An easy way to bypass huge loans is to attend a community college for the first 2 years. Pre-requisites are usually much easier and it’s significantly cheaper.
Tip 2: Make Smart Money Decisions
We’ve all heard of the freshman 15. College brings about new responsibilities and unfortunately this includes deciding whether to eat out or not at every opportunity available.
Let’s say your roommates choose to eat out twice a week. During one semester that equates to $400. Not too bad. After 4 years that ends up being $3200.
And then, think of all the clothes you could waste money on! Colleges hand out free shirts like candy. Yet, if you go to your bookstore or student center, a shirt can cost $30-$50 each!
If you absolutely need a jacket, sweatshirt, or tank that reps your college, go to your local TJMaxx, Walmart, or even Ebay. Not only will this help you learn to be smart with your money, but you’ll save cash on these items that you may only wear a few times.
I actually ended up joining a college ambassador organization where I got tons of free meals and free apparel, which saved me a lot in the end!
#2. Find Small Scholarships
This is what TRULY allowed me to graduate debt free!
Now, I know what you’re thinking. Scholarships are for the smart kids. But just wait – I was able to accumulate a handful of small scholarships that added up big time in the end. Here’s how!:
Look Local and Apply Small
The key to this is to NOT apply for the big, national scholarships – your chances are way too small.
Instead, I was able to apply for dozens of small, local scholarships ($250-$1000 each). The competition is far less and it sometimes only requires a short paragraph or resume to enter!
Below is a list of organizations that I received scholarships through, or I have seen advertised recently!:
- Local Credit Union
- Diversity organizations
- Local political organizations
- Churches
- Local Police/Fire
My university had a section on the website of small scholarships, but was fairly hidden and few knew about it. There were tons of small opportunities, most specific to a degree or field of study. I was able to apply for a scholarship through here that earned me approx. $500/semester!
#3. Start a Part Time Job or Side Hustle
In attempt to accumulate enough to pay for the rest of my college, I needed about $2000 more per semester. To do this, I strategized a way to earn cash through a handful of methods:
Surveys
I regularly did surveys to earn gift cards, which paid for extra clothes and necessities – Amazon gift cards saved me big time.
Get a Part Time Job
I worked around 20hrs/week at $9/hr. This helped pay for living expenses.
Start a Side Hustle
Earn extra money in a multitude of ways to get extra cash to pay for college. Check out some options below!
#4. Finish Early
This is my little secret that few people dare to consider.
I knew that attending my University would cost $30,000 for 4 years. Imagine being able to save $7500 or more!
This is incredibly important if you are attending a more expensive University.
The first two years are always the most busy – full of active engagement with campus life, residence living, and exciting events.
However, I ended up graduating early – and numerous friends of mine chose to graduate an entire year early or more.
There are a few easy ways to do this:
- Take pre-session courses (usually the 2 weeks before a semester)
- Take summer classes – This will save you HUGE on time.
- Take extra online courses. Online classes are typically easier, especially if you are able to take via a community college.
Every person’s situation is totally unique when it comes to graduating debt free. The above lists are unique to my personal situation, but you can definitely take some of these to build your own roadmap to graduating early – and graduating debt free!
Keep Learning!
- How Millennials Can Start in Rental Investing
- How to Avoid Big Money Mistakes As a Young Adult
- 3 Ways for Young Adults to Start Investing
References: Student Loan Crisis Facts
Great insight, Ben! With the incredible cost of Universities, it will be interesting to see how online options will take over. Unfortunately due to my degree, most classes had to be in person, but I took each online opportunity available! It was a very hard few years trying to get a degree without student debt and I cannot imagine it being a possibility if prices continue to skyrocket. Thanks for stopping by!!
This is a solid summary of options! I think this year will be very interesting with the impact from COVID-19. So some of this advice might change depending on what the landscape of Higher Ed becomes in the next couple of years. I would expect to see brick & mortar campuses reducing their tuition prices if they can manage it. The finances will be very challenging for people the next couple of years. Colleges absolutely need to become more affordable. With the pandemic and an upcoming election, it’s really hard to predict what things will look like.
That being said, one option I’d also throw out there is looking at taking classes online full time. You touched on this briefly as a strategy to graduate early. It’s also worth considering going online entirely. If you’re the type of student who might not be as concerned with a campus experience, then the cost savings could be worth it. Online schools are significantly cheaper. Full disclosure, I work for an online university, so I’m not intending this as a sales pitch. But I have seen first hand how much student loan debt students are piling up. So if you’re looking at this purely from a cost savings perspective, online is the way to go. That being said, online is not for everyone, so consider the pros/cons of taking classes in person vs remotely.
Enjoyed the read. Great topic!