The rising cost of higher education and the burden of student loan debt have made college affordability a pressing issue. However, a new book titled 'Graduate Debt Free' offers strategies for students to challenge assumptions and avoid excessive debt. The book, written by a lawyer-turned-student loan researcher, outlines 12 flawed assumptions that lead students to take out unaffordable loans for college. These assumptions include the belief that a college degree is necessary for success, that athletic scholarships are readily available, and that a job will cover the debt.
The author, who sent three sons to college and witnessed the increasing cost of tuition, emphasizes the importance of scholarships, networking with professors, and choosing a career path that will allow graduates to pay off their debt. The book provides tools and advice to help students navigate the college financing system and make informed decisions about their education.
The book has been praised by experts in student financial aid for its insights and practical strategies. It highlights the need for policy changes to address the issue of student debt, particularly the problem of uncapped PLUS loans. The author calls for reforms that would make college more affordable and ensure that students are not burdened with excessive debt.
While the book offers valuable guidance, it is important to note that the issue of college affordability goes beyond individual strategies. Structural changes are needed to address the root causes of rising tuition and student loan debt. This includes increased investment in higher education, reforming financial aid programs, and holding institutions accountable for their pricing decisions.
In a personal story shared on Newsweek, the author describes how they paid off $60,000 in student loan debt by the age of 26. Motivated by the possibility of retiring early, they took on a part-time job scooping ice cream, earning $13 an hour plus tips. They also babysat regularly, bringing in an extra $300 a month. Additionally, they used the online marketplace Poshmark to sell secondhand clothes for profit, making around $250 a month. The author employed various strategies to save money, such as budgeting, selling items on eBay, bringing lunch to work, cooking at home, and cutting expenses like cable. Through perseverance and support, they were able to pay off their debt and feel a sense of relief and freedom.
This personal story serves as an example of how individuals can take proactive steps to pay off their student loan debt and achieve financial independence. It complements the strategies outlined in 'Graduate Debt Free' by highlighting the importance of budgeting, increasing income through side jobs, and finding creative ways to save money. By combining these individual strategies with systemic changes, such as those advocated for in the book, it is possible to address the issue of student debt at both the individual and societal levels.
Determining which debt to pay involves taking a lot of factors into account. You'll need to consider whether you're likely to stay motivated if debt payoff will take a long time. You should also consider the interest rates and whether you have any prepayment penalties to think about. If you have several kinds of debt to take care of, you'll need to make a strategic choice about which to focus on repaying first. Answering these four questions will enable you to make your plan so you can develop a clear path toward the financial freedom that comes with being debt free.