8 Steps to Graduating College Debt-Free
For most people, college is a financial maelstrom, sucking up hard-earned income and savings and saddling victims with debt. Not for me. I finished my senior year in the black, boasting a healthier savings account -- and a deeper knowledge of personal finance -- than ever before. Here are the lessons I learned along the way.
*Disclaimer: Following the tips below will likely cause your social life to suffer. But if you're serious about graduating college debt-free, you'll have to minimize your non-essential expenditures. Take time to figure out the right balance for you and your budget.
1. File Your FAFSA
It sounds simple -- and, in fact, it is -- but filing your financial aid forms, especially when you come from a low- or moderate-income family, is a crucial step to paying for college. Well over half of my school fees were covered by financial aid. (Thanks, Mom and Dad, for not making money for a few years!)
2. Attend Community College
Want to cut your tuition fees in half? Start your college days out at a community college. Not only will you spend fewer dollars per class unit, but you'll also find yourself surrounded by older students, many of whom are -- gasp! -- actually dedicated to learning. There's a reason why community college students perform better once they switch to four-year institutions than their non-transfer peers; they learn to take school seriously immediately upon kicking off their post-secondary education. (Plus, if you live at home for both years, you can save major moolah on rent!)
3. Live Off-Campus
I realize that not all colleges let students live in apartments, at least not until their sophomore or junior years. But if you're lucky enough to get to choose your living arrangement, hop on Craigslist and find some off-campus roommates. I paid a good $300/month less when I rented a room in an apartment than I would have if I'd chosen the dorm instead. Plus, I got a room all to myself.
4. Forget Partying
Ah, college -- the first opportunity for burgeoning adults to indulge in alcohol without the watchful eye of a parent hovering nearby. I realize it's tempting to hit the clubs, especially right after you turn 21, but remember: for every drop you drink, that's money down the sink. Or something like that. The point is, partying's expensive. I minimized my bar tab, and in the process, I maximized my wallet.
5. Learn to Cook
There's a reason why food's more expensive when you eat out: you're also paying the wages of your server, not to mention the restaurant's rent, electricity, water, etcetera. I can probably count on two hands the number of times I went out to eat at a decent restaurant during college. Did my social life suffer? You betcha. Did my bank account? Not so much. If your priority's to save a pretty dollar, figure out how to use your stove, and get cooking.
6. Don't Take Out Loans Unless You Need Them
One mistake I made during college was to take out a $1,000 student loan. I was worried about running out of money, but I still hadn't come close to depleting my savings. Sure, the loan was paltry, but it was still a thousand bucks I could have lived without borrowing. if you have one cardinal rule, make it this: don't borrow or spend money you don't have unless absolutely necessary. (And if you desperately need a loan, try your hardest to secure one from the feds, not from a private lender. Your interest rates and repayment terms will be substantially easier to stomach.)
7. Apply for Work-Study
My college job paid over $12 an hour -- not too shabby for a 20 year-old without much work experience besides doling out popcorn from behind a concession counter at my parents' movie theatre. How'd I score such a good gig? Work-study. Many schools offer this great program, which supplements employer pay with federal funding. UC Berkeley's School of Public Health, my college employer, paid me a little over $6 an hour, which Uncle Sam matched. I worked about 20 hours a week and made enough extra cash to cover my monthly rent and utilities.
8. Join a Club
Everyone tells students to pay for college with scholarships. What they don't say is how to win them. Here's a tip: join a club early on, stick with it, and seize any leadership opportunities available. I got involved with a student-run anti-genocide organization, STAND, and joined both the national managing committee and my local UC Berkeley chapter. Come scholarship time, I never had any difficulty answering questions about leadership experience or extracurricular passions. Plus, I made friends (and trust me, if you follow all my advice about avoiding clubs, eating in, and living off-campus, you'll need to take friends where you can find them).
There you have it: my eight steps to graduating college debt-free. Have some advice of your own? Share it below!
Until next week,
Charlotte Hill
Social Media Fellow
Photo credit: ralph and jenny
