An email to my Nephew on College Student Loans

Being the financial organizer that I am and seeing many clients paying back student loans 20 and 25 years(no exaggeration)  after graduation please accept some advice, or at least consider it.  Remember I went through 7 years of college debt free, and Grandma and Grandpa stopped helping me after the first semester, so it was all on my own, no scholarships.

 

*Remember everything you borrow is going to have to be paid back, borrow sparingly, and never use student loans for spending money, if you don’t make it with a paycheck you shouldn’t be spending it.  So now the question is, do you want to save now and have more spending money in college or spend as you do now in high school, remember that every time you pull out your wallet, do I want to spend this now or when I am in college.

*Use the D2D Money Calendar I am sending you, run your numbers, see how much you can start saving now to see how far it will go.

*Apply for absolutely every scholarship that is possible right now, don’t wait, $500 here, $1000 there is all money that you won’t have to come up with.

*Don’t use credit cards in college it is a slippery slope, once you start it, it gets worse.

*Try to get involved with Residence Life, Student Government right away in your Residence Hall,  it will open doors to become an Resident Advisor, my room and board was paid for and I got a small paycheck.  Then I just had to worry about the tuition bill, no living expenses.  It also gives you excellent management experience and training.

*Since you are going to be “an out of state student”, find out the rules now for residency and figure out what has to be done to become a resident.  Now this and the RA thing may conflict, find out what the benefits of each are and I can help you do a break-even analysis to see which one will help you the most.

*Along those same lines, if you decide to live off campus, is there an investment opportunity to buy a house/duplex and have your renters pay the mortgage?

*Once you start looking at your student loan/grant options, I will be more than happy to take a look at them to see if there is any fine print that may be an ugly surprise down the road for you.

*Read my money blog, it will help you along the way.

*Then down the road when you have a paying job out of college you have to promise to have me help you put a plan together to get those student loans paid off ASAP.

 

Have fun with this….it is an exciting time for you and keep me posted.

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~ by debt2dreams on November 27, 2008.

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