All the parents in the world seem to have the same advice, “Go to school, get good grades, and get a safe, secure job.” That is their definition of success, and do you know why? Because it’s what their parents instilled in them! Our parents and grandparents saw how limited their options became later in life, all because they did not have that piece of paper from a college institution.
For whatever reason, the parental advice seems to stop there. In my mind, I had plenty of other questions as a teenager leaving the walls of high school and venturing into this unknown called college. For instance, “How do I handle my finances now that I’m out on my own?” Or, “Are my study tactics from high school going to be good enough for college?” Most importantly though, our young high school grads are often asking the question, “Is it ok for me to take out all of these student loans? Will I be able to pay these back easily once I find a job?”
When it comes to student loans, many parents do not have the money to fund their children fully through college, and since their kids don’t hardly make any money and have nothing saved up, the only option available is student loans. Throughout their college career, students are borrowing $10,000, $20,000, and sometimes $50,000 or more to fund their schooling! The average graduate owes $25,000 in student loans and most likely doesn’t have a way to pay for it. After all, there is absolutely no guarantee of a job, even if you do have that magical piece of paper.
Did you know that 20% of the bankruptcies today are filed by kids that are under 25 years of age?! More often than not, it’s the same story: they went to college without having any money to pay for it, survived with a few credit cards for a while, but then simply ran out of borrowed money. Before they realized it, they had $40,000 in student loan debt and $30,000 in credit card debt and were forced to start paying it back. Well, a $900 payment each month is pretty tough considering they still only make $12 at their part-time job. Bankruptcy seems like the only way out.
I beg you not to become one these bankruptcy cases. It just doesn’t have to be like this! Believe it or not, college CAN be paid with cash. It takes careful planning, and perhaps you’ll even have to take a few months off from school to save up some more money, but it is possible. Just think about what you could do if you graduated with your degree and found a job that paid $45,000 per year, and you have absolutely no debt! Immediately, you’d begin to fund your retirement accounts, you could make a massive down-payment on a house, and you’d build up your savings to the point where you’d never feel stressed about money ever again! Wouldn’t that be nice? Let me tell you, it is possible!