According to Experian data, student loan debt has reached an all-time high. It's over $1.4 trillion dollars as of Q1 2019 and has become one of the largest financial burdens in the United States.
Students who take out student loans are forced to use their salary to make repayments instead of saving and investing money. Additionally, student loan debt can trap your pockets for 10, 20, 30, or 40+ years if you don't have a plan for paying off your debt.
This means that a four- or five-year educational experience can turn into decades of debt if you don't have a plan to minimize your student loan liabilities.
But there is good news! You don't have to join the debt party. You can take advantage of scholarships, profitable money-making opportunities, and a strategic plan that will allow your college education to turn into an asset instead of a long-term liability.
If you or someone you know is on a mission to graduate debt-free, here are 3 steps to get you started:
1. Position Yourself to Graduate Early
The longer it takes for you to get your degree, the more money it will cost you. Plan ahead. Take classes that count towards college credit in high school, enroll in classes at a community college during the summer after your first year of studies towards a bachelor's degree, and register for more classes every quarter or semester.
By planning your course curriculum ahead, you'll be able to finish your degree earlier.
2. Choose a Profitable Major
What are the most in-demand majors in the marketplace? What skills do you need to be relevant and competitive in the job market or as an entrepreneur? Before you choose your path in college, do your research and calculate the potential return on investment.
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Test out different job opportunities as an intern so you can gain real-world experience and make money that can be used towards your tuition. Remember, if your major isn't your true passion, you can always take on a minor or another major that reflects the direction you want to go in life.
3. Get Involved On Campus
Money is all around you - including on the campus grounds you walk every day. There are typically hundreds of student organizations on campus and many are part of larger networks that offer scholarships to students who are actively involved in the community and showcase high leadership potential.
During my college experience, my involvement in the National Association of Black Accountants, Golden Key International Honor Society, and National Society of Collegiate Scholars allowed me to gain thousands of dollars that I could allocate towards tuition costs.
These are just a few steps to get you started on your journey towards graduating debt-free. Always talk to a trusted financial coach to help you create a plan that best suits you.
Charlene Rhinehart is an award-winning speaker, consultant, and coach who uses digital technologies to share inspiring stories with the world. She helps others live their best life as a Financial Coach at Wealthy Women Daily, Founder of the Career Goddess Academy, and Travel & Lifestyle Writer at BlackCoupleTravels.com. Charlene recently published her first book, “Dividends Are a Queen’s Best Friend” on Amazon.
