This day in age student loans are the “norm” for a college student to be able to get through college. But does it have to be like that. According to CNN Money the average debt that a new college graduate accumulates throughout their four year program is an astonishing $35,000. $35,000 right out of college. CRAZY!!!! For doctors and lawyers the debt can be over $100,000 which can take over 20 years to pay off. Below are four reasons why Callean and I will save money for the girls’ college, the girls will work through school and we will encourage them to apply for any and every scholarship under the sun. We want them to be weird and live like no one else through college, so that after college they can live and give like no one else.
1. No debt
This is the main reason why they will not have college loans. Having debt is so restrictive and will turn their positive accomplishment of graduating into a nightmare when they realize that they will be setting up their spare bedroom for Sally Mae.
2. They will learn to work hard.
Its hard to work while in college. I did it. I had two jobs. Once the girls’ graduate with no debt they will realize it is because of their hard work. Working through college will give them an advantage as they head into the work force in the job field they studied. They will already have the discipline it takes to go to work day in and day out.
3. More potential to succeed in preferred career field
With no debt they will not have the added stress and will be able to focus on their job. They will also get to chose a job more wisely and won’t have to get a job JUST to pay off their student loans. When you’re desperate to pay off your student loans, you’re desperate to take a job even it has nothing to do with you’re career field and won’t help with career progression, which could cost them money down the road.
4. Continue family legacy
Starting life with no debt will be the one thing that will set the girls’ up for success. They will be able to start saving for their retirement at a very young age. Compound interest will be their best friend. Their ability to save money instead of paying Sally Mae or creditors will set them up to be wealthy and also be able to pay for their children’s college, creating a cycle of winning.
A college education is a great enabler to have a good and prosperous life but you can really dig yourself into a deep hole with student loans. It is possible to get through college debt free. I did it. I joined the National Guard to get my degree debt free. Callean got her Associates degree debt free with a two year band scholarship. It can be done. We will use Education Savings Accounts and 529 plans to save and encourage them to fill out scholarship applications. There was a caller on the Dave Ramsey show that told him that she filled out 1000 scholarship applications. She was rejected on close to 950 of them but the ones she did win got her a Masters degree. Yes the 50 scholarships got her through undergrad and grad school.
Don’t give into the “norm” of getting student loans. Set yourself or your kids up for financial success and save for college and pick an affordable school. You’ll thank yourself later in life.
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