So you’re probably picking a college right now. Maybe you already picked one but now you know how much it is and you realize that after living expenses you will finish your degree with massive debt. So what do you want to do? Not think about!
I know that is tempting. I almost did that but ended up staying at home instead of moving cross country to an expensive school and went to a public University instead.
But that’s not what you want to hear. You want to hear how you can have your cake and eat it too (that’s why we buy the cake after all!).
So here are some tips:
First what not to do:
- Scholarships: forget about them! You will not earn $150,000 in scholarships. Few people get them and the amount it takes in writing essays and talent in choosing right places is more than a full-time job and the returns are less than working a full-time job (I wrote about this after spending a month trying, I got zero scholarships).
- Don’t get an unsubsidized loan. They will kill you on the interest rate, it can never be forgiven and they are relentless in pursuing it, will even deduct money from your paycheck. So if you have to borrow more than the subsidized government loan, DON’T DO IT!
Do, However:
- Haggle with the college. If you have other options, call the financial aid office, tell them, maybe they can find a scholarship at the college.
- Check out alternatives abroad. Many colleges abroad are free tuition: Denmark and Germany are free even for Americans. Some graduate degrees are free abroad as well. In Israel, a Master of Science with a Thesis is paid for and you get a monthly allowance of about a $1000 which is just enough to survive on.
MOST IMPORTANTLY
Think about what your future job is. If you don’t know, don’t go for a super expensive degree. If you do know and you know how much you will make, check how long it will take to pay back your degree. When you do that, consider the full cost of education, including graduate degree. If the cost is too high, minimize your undergrad cost so that you have the best school to choose from for the Graduate Degree, as that degree will matter more than your undergrad.
LAST TIP
If you do get into Harvard or Yale, try to go there. Most likely whatever degree you graduate from the best university, will pay off even if you take on loan. And if you do not get into the most prestigious University but you know what you want to do with your life, pick the one with the best program in your field. You will get the biggest bang for your investment in knowledge and credibility that will help you land the best jobs in terms of pay and satisfaction.
So in the end: be proactive, a little bit of thought and action now, can save you a ton of money, stress, and headache later.
Good luck!
seven year degree 