Yeah!!!! It is Homecoming Weekend at Morgan State University . As I prepare to turn up this homecoming, I pause to reflect on what a great experience I had as a college student. While at Morgan I received a quality education and formed relationships that endure still. Now, that is not to say that the university was without its challenges. Back when I was a student registration was a nightmare, financial aid was a BEAR, the refractory served awful food, etc. but all in all Fair Morgan, I love you! But what I do not love is the resulting school loan debt.
Some decade plus after graduation though gainfully employed in my field of study I am still saddled with school loan debt. Despite it being labelled as “good debt”, I do not feel good about the balances nor the impact it is and has had on my financial fitness. I have a plan to rid myself of it and I am on my din. So what else can I do, well I can warn others against making the mistakes I made and provide effective alternatives. After all, we were taught in the Earl Graves School of Business and Management to become the shoulders we once stood on.
Warning: My next statement is likely to upset some parents reading this but hey, the truth isn’t always comfortable. You should consider strongly whether college is a necessary expense for meeting your life goals. Attending college should be much more about your fitness and desire for knowledge in a particular field of study rather than your parents dreams of a legacy college attendance or a "better" life for you. Ask yourself, what are you passionate about or where do your interest and talents lie? The answers to those questions should chart your post high school course of action. If you don’t know the answers to those questions get a job, volunteer, read/research, sing, dance, hike, hunt, visit a farm or factory to help you figure it out before enrolling in school. This especially true if the financing of your college education will be paid for with school loans. Spending several years in college to fail out because you are disinterested or changing majors 17 times because you don’t know what you want to do is wasteful and can result in thousands of dollars in unnecessary debt.
Once you have decided college is for you, here are a few tips for you on avoiding or minimizing school debt:
1. Apply for any and all scholarships, grants or fellowships for which you are eligible. Don’t just consider the big name schools for these opportunities. Check out state and smaller private schools for funding as well. Also, consider schools with strong alumni or private partner support they will often have more robust funding sources.
2. Consider a local accredited community college to complete you general education credits.
3. Consider a career ready two year program at a local accredited community college (programs such as respiratory therapy, radiology technical, carpentry, para-legal). Many of these careers are in high demand and pay good wages.
4. Avoid private school loan companies.
5. Apply for work study positions.
6. Go to college part time. Consider obtaining employment where the benefit package include funding for attending school. So what if it takes you 7 years to graduate if you can do it without having any school loan debt it will be seven years well spent.
7. Consider a joint enrollment program which will allow you to begin taking courses for credit in your junior and senior year of high school.
8. Go to school in state. If you need to be away from your parents, siblings or community to be successful apply to schools in another city or part of your home state.
9. Avoid unsubsidized student loans.
10. Be creative, use crowd funding, social media platforms to identify and obtain funding personal and organizational funding. Ask your favorite artist via Twitter how they planned for and funded their dream.
If are in college, here are a few tips for you on avoiding or minimizing school debt:
1. Some of above listed may apply to you, review them.
2. Don’t dawdle, go to class, study and do your coursework!
3. Apply for work study positions or obtain a part time job.
4. Don’t take excess school loans to fund wants. No, you don’t need the slickest or latest this that or the other.
5. Discuss in school payment options with lender. Use gifts, settlements, tax refunds, prizes to pay on school loans while your are still in school. That is after you pay yourself 20% first into your savings account.
If you have recently graduated, here are some tips on eliminating any debt you incurred:
1. As soon as you are gainful employed, start making payments on your loans.
2. Consolidate your loans to the lowest rate possible.
3. Look for employment that include student loan forgiveness as a benefit.
4. Don’t take on any more major debt until your student loans are paid off or significantly paid down. Home share, rent a room, ride public transportation, bike, or buy a used car, elope whatever you do use the first 5-10 years after graduation to address these loans.
Yes, there are exceptions to every rule. If you have a special situation, hit me on Facebook or email me; I bet I can come up with a solution that stays within the spirit of avoiding, minimizing or eliminating school loan debt. Remember, the only "good" debt is a satisfied debt.
A big shout out to Dr. Dawn Tafari for inspiring this entry.
