Getting through College Debt-Free

Joy Paley is a blogger for My Dog Ate My Blog and a writer on Online Universities for Guide to Online Schools.

Oh, college. I remember you fondly. Strolling through the quad, anthro homework under my arm. Falling in love for the first time. Watching my classmates fall deep into life-smothering debt that they won’t climb out of until they’re 40…
College is truly an investment in your future, but it’s not one you need to make at the expense of your finances and sanity. If you do your research before enrolling and exhaust all your funding opportunities, you can get out of college debt-free, or nearly so.

1. Choose Wisely
The first step to a debt-free college education happens before you ever set foot on campus. Get a handle on how financial aid works at different types of colleges, to choose the most cost-effective school for you. For example, top tier colleges have truly excellent financial aid. If your family is even vaguely working class, you can get a huge break in tuition. At Stanford, if your parents make less than $100K a year, tuition is free. That’s $40K off your yearly bill right away.
If you’re doubtful of your ability to be admitted to a top 20 university with an endowment the size of some European countries’ GDP, you still have great educational options open to you. Consider publicly funded colleges. Stay away from tier 2 private colleges that still charge tier 1 tuition rates, but without the generous financial aid package. Don’t rule out the possibility of a community college for your first two years. After your transfer, your bachelor’s degree will only have the name of your transfer school, anyway.

2. Make a Budget, and Stay Away From Big Spenders
Whip up a Google spreadsheet or use a free online program to track your expenses and monthly income, and see where you can reign in your spending. Realize that little things like eating out twice a week can easily become a $200 a month expense.
Remember, it’s not easy to stay within your budget if you’re running with a gang of Prada handbag-carrying fashionistas. While you don’t have to hang out in the janitorial closet with the maintenance crew, be aware that who your friends are will affect how much you feel the need to spend.

3. Get a J-O-B
On-campus jobs are often some of the cushiest in the world. I spent many a college weeknight doing my homework at the library checkout counter, checking a book out every now and again and making well above minimum wage. The key is finding a job that won’t overstress you, but will still let you earn while you’re in school. Becoming a dorm Resident Assistant (RA) can also be a great way to get a big discount on your room and board.

4. Take Time Off
Uh oh. One semester into your junior year, you realize you will have a serious budgetary shortfall next year. Instead of automatically taking out that $20,000 loan, however, consider taking time off from school instead, to come up with all or part of the cash. “Stopping out,” as they call it, can feel strange—not that many people do it, after all. But staying out of debt now will put you in a better place when you do graduate and want to begin your life. See it as an opportunity, rather than a set back. Look for jobs abroad, and find something interesting you’ll likely never get the chance to try again.

5. Cut Up Your Credit Cards
You don’t really need one right now anyway, and you’ve got the rest of your life to build good credit. Misusing credit cards in college and getting into debt will haunt you long after you’ve finally gotten your degree.

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