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For
this week’s post, I would like to introduce a first-time guest contributor
Celest Horton, founder of How To Pay For
College HQ. Celest earned her college degree without
taking on any student debt, and today she will share some of her secrets with
you!
Student loan debt in the US is getting out of
control. Recent news reports have stated
that the National Student Loan Debt is currently $1.1 Trillion and it continues
to climb, translating into an average student loan debt per graduating student
of $26,600. With low starting salaries
right out of college, it is often difficult for recent graduates to keep up
with their student loan payments while also covering their basic day-to-day
living expenses, which often results in new college graduates being forced to
move back in with their parents to help make their ends meet without going
further into debt.
The biggest problem attributing to this crisis
is that most people just default to student loans to finance college not
realizing that there is hope and options. I am here to tell you that it is possible to
pay for college without loans and I support a community at How to Pay for College HQ who are
eager to learn how for themselves. I was able to do it myself so I KNOW it is possible. It takes some time, planning and positioning,
but it can be done.
Here are 3 basic steps to get started towards that very
goal:
1. Dual Purpose Time in High School:
Research ways and encourage your student to take college
classes or earn college credit while still in High School.
- There is Dual and Concurrent Enrollment that allows students to earn High School and College credit simultaneously.
- Early Enrollment allows students to take college courses independent of High School classes.
- AP Courses (and passing the ensuing exam) also allows a way to earn College Credit while in High School at a fraction of the cost.
Now for Dual Enrollment and Early Enrollment there are
fees to pay for the college credits, but they are at the Community College cost
schedule and that is over an 82% cost savings over University classes – two
classes (3 hours each for 6 total credits) can be taken for under $500
total. Working a part time job, the
student can help contribute to the tuition and will be far along toward the
goal of earning their degree without loans!
- You could earn an Associate's degree before graduating High School, which usually requires 60 to 64 credit hours, depending upon the state’s mandate for the course of study.
- Eliminates duplication of coursework those first few years of college.
- Potential to finish a Bachelor’s Degree in less than four years and ultimately save thousands of dollars on tuition.
When it comes time to pick a college it is important to
pick one that is financially smart. Many
people falsely believe that the school of choice will have a direct correlation
to the success that their student will achieve in life and their overall
lifetime earning potential. The reality
is that it really doesn’t matter from where the degree is earned. The success of any individual is based upon their
drive, ability to network and willingness to continually learn and grow.
It is important when looking into colleges that the list
be narrowed down to ones that can be paid for by the parents and student
working together as a team. By utilizing
savings, grants, scholarships, and college Merit Aid a student should be able
to attend a financially smart school choice without the use of loans.
Complete the FAFSA (Free Application for Student Federal Aid), no matter what your
family’s income status. The first FAFSA
should be completed the Base Year, which starts the January of the junior year
in high school. The FAFSA will need to
be completed each year while your student is in college, leading to more
opportunities until graduation for State or Federal funding as family circumstances
can change. One important circumstance
that could change is having more than one child in college at the same time. The Expected Family Contribution (EFC) will
suddenly be divided by how many siblings are in college, leading to many more
opportunities for need based help. I
myself will have three kids in college at once and it’s reassuring to know that
in that situation there will be hope for HELP.
Make sure to complete the FAFSA every year! There
are federal grants available and we don’t want to leave any money on the
table. Every dollar counts!
Focus on preparing for Standardized Tests (ACT or SAT)
while maintaining good grades (High GPA & Class Rank) in school, all of
which can be helpful when trying to be awarded Merit Aid from a college. Merit Aid is money that a college has set
aside to attract students that will make them look better for statistical
purposes. If there is something that a
particular college likes about your student they will offer them Merit Aid to
try and convince them to attend. It is
another form of free money that doesn’t need to be repaid and, for a good
student, there is often a lot of potential for Merit Money because it is not
based on need and only achievement.
Start looking for local scholarships where the entry
pool is much smaller. They may represent
smaller dollar values, yet they do add up and often are renewable over four
years. Use online tools & books to help you find additional
scholarships. Be mindful that there are some scams out there trying to get you
to pay money for scholarship links. A few trusted and recommended sites to
start your search are FastWeb and College Board’s Scholarship Search. Mark your calendar with the application's deadlines and make
sure that you are a good fit for the scholarship requirements.
Students and parents can often lose sleep over the
concerns of how to pay for college. As a
society, our main goal should be to help position new college graduates to
start their professional careers on a solid footing and without the weight of
student loan debt.
Can you think of any other suggestions that would help a
High School student reach their goal to
pay for college without loans? I would love you hear your thoughts and
feedback.
Celest Horton is
the founder of How to Pay for
College HQ,
which offers weekly podcasts posted every Wednesday as well as helpful hints
regarding FASFA and many other resources.
Celest graduated from college debt free and is making great strides to
help her four children and other students across the country do the same. Follow Celest on Twitter at @celesthorton.
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