Graduating College Debt Free (or as close as possible)

Over $1 Trillion dollars! That is the amount students owe in federal student loans. That amount doesn’t even include loans from other sources. Think about that number for a minute. That’s 12 zeros…it’s huge!

To break that down to an individual basis, the average 2014 college graduate has over $30,000 of federal loan debt before they even get started in their career. And that is assuming they get hired in a very difficult job market due to a “recovering” economy.

Before you become too depressed, there is good news. Parents and students who take an aggressive and proactive approach do not need to be under that type of financial burden. The following steps are actions that you can start now…

1, Begin immediately participating in your state’s “529 Plan.”

Stated simply, a 529 Plan is a college savings plan that has many state and federal tax advantages. Like saving for retirement, the earlier you start the better. Even if your child is about to graduate high school, you should set aside money through this saving tool.

2. Join UPromise (or other similar rebating program)

UPromise, is a program from Sallie Mae (the largest student loan servicing company) that provides cash back rebates from purchases with thousands of retailers. The cash back can be credited to your 529 savings plan, directly applied to existing student loans or even sent as a check for college expenses. Other friends and family members can even join to contribute their cash back to your student’s account.

3. Enroll in “dual credit” courses

Too often homeschool students learn general studies content at such a high level that they are bored when they get to the freshman year of college. Why does our educational system force them to re-take English, History, Math and Science again during their freshman year of college?

Many colleges now offer courses to high school juniors and seniors which allow them to earn college credit while still in high school. These courses can be entered on your homeschool transcript to help satisfy any state or local high school requirements you may need to meet. Most of these courses are provided online and at extremely reduced rates. If you are fortunate enough to live near a Christian college, investigate their policies about high school students attending on campus classes as well. Again, they usually offer this at an extremely reduced price because they want to recruit your student.

In addition to the advantages of receiving both high school and college credit, earning enough credit before moving to campus may yield saving a full year of room and board expenses if your student can graduate in three years rather than four!

4. Earn college credit through CLEP or DSST (credit by exam)

Similar to the benefits of dual credit courses, these computer based exams are standardized tests that colleges accept in lieu of taking the course. If you student is a good “test taker”, this is a fantastic way to earn college credit. Imagine spending $80 for a test that replaces a thousand dollars or more of tuition!

5. Learn the “Scholarship Game”

Beware of scholarship searches that charge you a fee to find “billions of dollars of unclaimed scholarship money!” But there are some very reputable search systems that help parents locate private sources of scholarship money. Some may require the student writing an essay or making a presentation but they are well worth the effort.

Also, every college has money set aside for institutional scholarships. Apply early and negotiate! If they really want your student, they will find scholarship money to seal the deal.

6. Shop Around

It is shocking how often students make the $100,000 decision about what college to attend based on trivial facts like the school’s sports team, their historic buildings or even the school color! Help them do the same kind of research effort that you would do with a car or house purchase. There are many important online tools are available that help you                view a college’s IPEDS (Integrated Post Secondary Education Data System) that is mandated for any college that using federal student loan money. These reports show everything from the ethnicity mix of the student body to retention and graduation rates.

Also, comparing prices between colleges has become easier through another federally mandated tool known as the Net Price Calculator. Every college that accepts federal student loan money must have this tool on their website.

No single action will be the silver bullet but collectively these steps will help your student on the right path toward financial freedom, not student loan bondage after college. (Proverbs 22:7)

These are just the actions that should be taken before college; there are several steps during and immediately after college as well. Email me at rcramer@davisny.edu for more information from my homeschool conference presentation. What other ideas do you have? I’d love to hear from you!

Rick Cramer is the Chief Enrollment Officer of Davis College, a college of Bible and ministry located in Johnson City, NY.  After completing his Masters of Arts degree in Social Science at Binghamton University, he is now in the final dissertation phase of his Ph.D. in Educational Leadership at Trident University International.

Rick has years of experience in higher education, including roles as Vice President for Student Development, Chief Operating Officer and Resident Professor.  In addition, he spent several years as a youth pastor.  He has been a speaker at over one hundred Christian schools and youth groups, as well as conferences and commencements.  Some of his presentations include “Launch to Life: Successful Transition to College”, “Creative College: Innovative Ways to Earn a Degree” and “What Parents Need to Know about Finding and Funding the Right College for Their Child.”

If you have questions or would like to schedule Rick to speak with your group, please contact him directly at rcramer@davisny.edu