Money = Resource
Yesterday I exchanged a few “tweets” with someone I’ll call KB, after discovering through the magic of Twitter that she graduated from college AND grad school with no debt(!), had the school pay her, and put money in the bank! Graciously, she agreed to the following interview, which I want to share so that you can understand that it is quite possible to get a college degree without going into massive debt OR spending your life savings.
MLMK: So, KB, you managed to finish college and grad school with no debt? How did you accomplish that?
1. In my junior year of high school I started applying for a ton of scholarships. It is amazing how many local organizations will sponsor students depending on your personal interests. Is your dad a vet? Is your mom an accountant…(does) the local CPA chapter have a scholarship? While these scholarships are only a few thousand dollars, they will pay for a semester.
MLMK: Is it true that you actually SAVED some money while attending college? How?
I saved money during my undergrad years living at home, working a part time job for spending money, and keeping my grades up so I could qualify for honors scholarships. I was also active in the community, and I received scholarships from that. For example: I decided to sit for the CPA exam while I was a senior in college. Studying for the exam is a daunting task, and you need a study course to pass. However, the course was $1,500. I did some research and discovered that being a student representative for the exam course earned you a free course. All I had to do was hang some posters and talk about the CPA study exam class in my accounting classes and student organizations. Be creative, ask questions, join organizations.
MLMK: Do you think that you missed anything in college because of your choices regarding money and education? Any regrets?
Since I did not live on campus, my college experience did differ from my peers. However, I was able to focus on my classes and grades since I was free of distractions. I admit that I didn’t have much of a college social life, but that was not my goal. However, for people who are concerned about not living on campus, I believe that joining organizations would fulfill any social requirements a student may have. You don’t have to live on campus to “go Greek” or join professional organizations. Also, chances are, you will have friends that live on campus, so you can experience as much or as little of the college social scene as you want without the added expense of dorm fees and cafeteria plans. Plus, the food is better and you don’t have to put up with roommates.
MLMK: What one word would you use to describe your attitude toward money?
Resource (MLMK likes this. A means to an end, not the raison d’ etre)
MLMK: What did your experience about “pay as you go” for college teach you about being in business for yourself?
It was a great feeling to graduate from college and not have to worry about paying back loans. Since I had to pay for school myself, I learned early on what I was willing to work and pay for.
MLMK: Could you give five pieces of advice on how to graduate from college with no debt?
- Work while you are in school
- Choose your school carefully; in state schools have far cheaper tuition
- Become “independent” as soon as possible so you can apply for Pell grants and federal funding without having to report your parents income.
- Live at home or someplace with minimal rent - stay away from dorms and living on campus
- Apply for as many scholarships as possible and keep your grades up
Well, there you have it, a real-life example. What do you think of these suggestions? Do you have a savings angle of your own?
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Great post. I think this new pragmatism will start to take hold, as students/colleges start focusing on academics and real-world applications, and not climbing walls and stellar football programs. although I do quibble with the notion of working while in school — if working means you graduate in 5 instead of 4 years, the tuition expense probably negates the money made from a job. And I think living on-campus is a uniquee once in a lifetime experience that can help students grow — at least the first two years. simply joining on-campus organization doesn’t provide the same experience.
Thanks, Tim. The work thing is doable, but on a part time basis. I worked full time and went to college full time–ridiculous. We do make our son work for ALL his spending money–real world!
What a great interview Bill. I thoroughly enjoyed reading every q&a. I’m sending this to all my siblings who are currently in college or getting ready to apply for college.