The Cost of College: How to Avoid Massive Loan Debt

If you’re thinking of taking out sizable loans to pay for college, don’t do it!

I did, and it sucks. I was embarrassingly oblivious of my financial situation in school, spending money on fast food, parties, fraternity dues, etc. while ignoring my increasing amount of loan debt. I had scholarships to offset the damage, but I could have done much better. Luckily, you don’t have to be like me.

There are many ways to pay for college and minimize your spending so that you don’t need $15,000-plus in loans each year. The big three helpers are scholarships, living off campus, and working.

1. Be a nerd. Complete strangers will pay for your degree—that’s awesome, so take advantage. Even if you slacked off in high school, study hard in college so you can qualify for departmental scholarships or financial aid offered to returning students.

Don’t ignore smaller scholarships. An extra $500 now is $500 plus interest that you don’t have to pay later. I managed a total of $9,500 my freshman year—easily enough for tuition and books—and I hardly spent any time applying for financial aid. With a little effort, you could do much better!

2. Move out! My alma mater’s current annual room and board fees total $8,167 for about eight months of food and a tiny, shared space. Are dorms really worth $1,000 a month? You can easily save money if you move off campus and split the cost of rent, food, and utilities with roommates.

As a bonus, living off campus will better prepare you for life after school, with all the freedom and responsibility that entails.

3. Get a part-time job. Many students already work over summer or winter break, but you can generate even more income working part-time during school. Just 12 hours a week at $8 an hour would give you an extra $1,440 in a 15-week semester! That’s not even including the extra hours you could pick up over long weekends or mid-semester breaks.
I know working doesn’t sound fun, but it looks fantastic on a resume. If you can balance work and school for four years, of course you can handle whatever your future employer throws at you.

Don’t overlook other ways you can save money in college:

·                   Live near campus so you can walk or bike to class.

·                   Eat at home, not at restaurants.

·                   Be mindful of your utilities.

·                   Moderate alcohol intake. Save your liver and wallet!

·                   Finish in four years.

You don’t have to become a hermit, of course, but it helps to be aware of your spending and make every purchase a conscious decision, not a blind impulse.

Follow these guidelines and you can graduate college (mostly) debt-free. In the process, you’ll build a fantastic set of life skills and a great resume. The cherry on top is that you won’t flush thousands of dollars down the toilet, which is exactly what paying for student loan interest amounts to!

— Tim Schlee

 StorageFront.com

Tim Schlee is a writer for the self-storage aggregator site StorageFront, where he combines his enthusiasm for educating others with his expertise in the storage industry. He is a Kansas City, Missouri, native who studied English and linguistics at Truman State University.