This is a series of 3 guests posts that I wrote for other bloggers. These posts are going live this morning on these blogs: Bargaineering, Green Panda Treehouse, & Poorer Than You. This post should serve as a wrap-up post to tie it all together and summarize each article.
You are 22 years old. You have just spent the past four years paying tuition, room and board, books, food, utilities, transportation, etc. The worst part is that it is all getting more and more expensive beyond peoples’ expectations. Where does that leave you? In a mountain of debt upon graduation. For some of us that means letting our debt dictate a less than optimal career.
However, what are some ways that we could better prepare for our college education? And if it is too late for you, how can we better plan for our children’s education?
I will outline three ways: Savings Vehicles, Financial Aid, and Reducing Costs. Each section contains a sub-list of “to-do’s” that I advise you to look into!
Post #1: Savings Vehicles, Bargaineering
Post #2: Financial Aid, Green Panda Treehouse
Post #3: Reducing Costs, Poorer Than You
Post #4: Wrap up, My Life ROI
Hopefully you enjoyed all three of the articles this morning. And hopefully you learned something about financing part of the American dream. College is not getting any easier to attend with the rising academic requirements, rising tuition and fees, rising housing costs, rising book costs, and other miscellaneous costs. Hopefully, by utilizing the savings vehicles, financial aid, and methods to reduce costs I have outlined, you will be able to afford college. If you do not apply any of this new found knowledge towards your personal educational pursuits, try and help a sibling, a parent, a child, a cousin, a family friend, or anyone who could use the help. No one should graduate in mountains of debt and find themselves a lap behind their peers.
I will outline a few of the basic principles I went over in each post. I think you or someone you know could benefit from each post so please click-through to the post. You will be redirected to on one of my assosciates blogs which is hosting the post.
Post #1: Savings Vehicles, Bargaineering
An overview of Custodial Accounts, Section 529 Plans, and Coverdell Education Savings Accounts (Formerly Education IRAs). Have you ever heard a proud parent declare that they have created a custodial account for their newborn child? Their intentions are great: They want to fund it until the child reaches maturity, they want the child to take ownership when they think the child is ready, and they hope for the account to cover educational expenses the child may incur. Did you know to tell the parent that they were misinformed?
Ever hear a parent declare that they were not going to start a Section 529 Plan for their child because they weren’t sure if they would go to college? They decide it will be just as beneficial to stash the money in savings. Did you tell them that 529’s can be rolled over to other beneficiaries and that their are tax benefits to a 529 over savings?
Read this post to find out the differences between the three aforementioned savings vehicles.
Post #2: Financial Aid, Green Panda Treehouse
Financial aid consitutes both the grants and the loans that you can acquire from the Federal Government by filling out the FAFSA (Free Application for Federal Student Aid).
If your child told you that they were getting a Stafford Loan, would you know to ask if it was subsidized or unsubsidized? Even if you did, do you understand the interest implications?
Do you know how the expected family contribution is calculated? Do you know how that ties into your previous decision to have either a custodial account, section 529, or Coverdell?
Read this post to find out the different types of Federal aid offered, the stipulations, and how the aid is calculated.
Post #3: Reducing Costs, Poorer Than You
Have you or someone you know looked into co-op programs? Did you know that some companies look at hiring their previous co-op participants before they look at outside applicants? With higher pay.
Do you enjoy volunteering? Did you know programs exist that pay you a stipend, an education award, AND a warm fuzzy feeling in your heart afterwards?
In an academic society that I was an officer for in college, we offered scholarships. We gave every applicant a scholarship due to the lack of response. Do you know where to look for these scholarships?
Read this article to find out a whole slew of ways to reduce costs.
Conclusion
When all is said and done, hopefully you or someone you know will be able to graduate college sans debt.
I hope you enjoyed the articles. If you have any questions, comments, or suggestions please leave a comment!
I'm MLR. After graduating from college debt free, I decided to write a blog encouraging people to adapt responsible and sensible personal finance rules.
April 2nd, 2009 at 7:00 am |
Wow man I must admit I’m very impressed with what you have done today. I hope it helps you with the traffic and subscriber count! Let me know how it works out for you.
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April 2nd, 2009 at 12:53 pm |
Impressive work. Seems like you’ve been very busy lately. I’ll have to check all your guest posts.
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April 2nd, 2009 at 4:21 pm |
I’m cashing flowing an MBA at California Lutheran University right now in Personal Finance. Private Christian college tuition.
Tuition reimbursement, coaching fees, squeezing money out of the budget, whatever I have to do to pay this $10k a year bill without debt I’m doing it. (Helps that I’m personally debt free other than my house).
There are a couple others who are doing this without debt there but by in large, my “personal finance” professional peers in classes aren’t choosing to go the zero debt road.
Thus far I need to raise another $4k by January to stay in the program. Then I get two classes on the company dime.
Its a long hard road road. Its just worth it. But I’m in my 4th class that has been paid for with cash. I work full time, I coach 25+ hours a week and do homework 15 hours a week. I don’t get to write blog posts as often as I’d like. But at the end of the day the zero debt plan is worth it.
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April 4th, 2009 at 12:13 pm |
These are great!
I see a lot of students with substantial student loans nonetheless spending money foolishly. They figure, “I’m already in debt, so I might as well take advantage of it and live it up!”
The problem (besides the fact that debt will always eventually bite you in the butt) is that they’re spending money on “conspicuous consumption” items, keeping up with their peers, going out for overpriced drinks, etc… None of which really provides you any lasting happiness.
I’d add being aware of this type of lifestyle inflation to your great list of advice for college students and recent grads.
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April 5th, 2009 at 8:29 am |
Those are all good articles that hopefully will alert parents into getting prepared when their children go to university. I know it is indeed getting less and less affordable and could make our graduates be in debt for a very long time. The three ways you mentioned are good to help the young people not to get into so much debt in trying to get an education.
Evelyn Guzman
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