AVOIDING
DEBT AT ALL COSTS
by Lynn Lusby Pratt
At
the end of my son Cason’s first year of college, he called to say
that the entire freshman class had gone “all weird.” Having
just received notices to pre-register for next year, they had collectively
slumped into sadness.
Why? The majority of students were in debt for the freshman year, their
wallets were empty, and there were no funds to pay for next year.
Cason, however, was not depressed, though it had been a challenging year.
His jeans were worn a little thinner than everybody else’s. He hadn’t
gone out much — how could he without a car? But he had $200 in the
bank.
“I’m excited about next year!” he exclaimed. His friends
— the ones who earlier felt sorry for him because he had to work
— were now asking his financial advice.
I have followed the topic of student loans for 13 years. Nailing down
the statistics is tricky. There’s student loan debt, student credit
card debt, and college costs that some students charge to their credit
cards.
Recently The Miami Herald noted that “students are carrying credit
cards in record numbers.” In 2003, money expert Jean Chatzky and
Statistics Canada reported that the average four-year college senior graduates
with a $19,000 debt.
This amount wouldn’t be staggering if college graduates stepped
right into high-salaried dream jobs. But that’s not happening. Average
annual income upon graduation is roughly the amount of the debt, which
some experts say is only half the salary needed to comfortably manage
repayment.
Double the trouble when graduates marry. Millions of young adults currently
owe billions of dollars on student loans.
We had no idea this alarming picture existed until our Karis started the
college preparation process. We had been financially devastated a few
years earlier and were only just climbing back up to zero. But we assumed
other families — normal families — were managing.
How shocked we were to learn that, for whatever reason, few families had
funds for college. Loans were the answer for everyone.
But we said no.
Though we had no savings account and no other real assets, we made a determined
decision to avoid parent loans. We had been through enough. We would help
Karis as much as possible, but college would be her responsibility.
We steered her (and the kid brothers) away from personal student loans.
Eighteen-year-olds are not experienced enough to understand the implication
of being in debt long-term, but we understood. We did not want our children
set up for failure. We wanted them to be free.
And that’s how our journey began.
We had the same anxieties anyone would have: What if it takes forever
to graduate? What if the children, without any ‘mad money,’
miss out on all the fun parts of college? What if ... ?
But trusting the Lord to lead and provide brought amazing adventures.
Not only have the students learned management (and life!) skills; Karis
was elected homecoming queen — even without designer clothes; Cason
backpacked through Europe; Clinton donated big bucks and his account only
increased, and my niece Arian spent two summers in mission work and still
graduated in four years!
How does it work?
Don’t apply for any loans. Period.
Forget financial aid. Think Lord of financial aid. Psalm 116:17 tells
us, “Relax, because the Lord takes care of you.” It’s
simple, but not easy.
You see, it’s okay to go to school part-time, have fewer clothes,
work a year first, do without a car ... whatever it takes (and however
long it takes!) to graduate debt-free.
The lives of too many young adults have been reduced to paying back student
loans ... for 10, 20, 30 years. If they had it to do over, they would
gladly trade their predicament in exchange for an extra year or two of
school and going without a few things.
Debt-free college, with one hand in God’s, is better — and
more fun. We shouldn’t have to prove that. But we did.
‘Debt Free College — We Did It!’ is available by visiting www.amazon.com, or by calling 1-866-909-BOOK.
CONQUERING YOUR FINANCES
Despite the mountains of moola required by college, DON’T PANIC!
There are many resources available to help you achieve your dreams.
Read
More...
TUITION ADDITION
How to read in-between the lines when purchasing
your textbooks.
Read
More...