Is a Debt-Free College Education Possible?

Compromise—Or Join the Army

Neal Frankle, financial planner and blogger at WealthPilgrim.com

Neal Frankle, a financial planner and blogger at WealthPilgrim.com says students need to do four things to minimize college debt:

1. Pick the right school.

2. Pick the right major.

3. Get involved at school.

4. Learn how to budget.

Get matched with a personal loan that’s right for you today.

Learn more

He has two daughters in college right now, and neither of them will graduate next year with any debt. While he did save for their educations from “the day they were born,” that savings fund took a hit a few years ago. “I have less for them than I had planned because of the market downturn, but they are doing fine. They work during the summer,” he says.

RECOMMENDED:
FREE CREDIT CHECK TOOL
Credit Report Card
Check your credit for free with this great tool from Credit.com. It offers expert advice on how to manage your credit. And you can return every 14 days for unlimited free updates.
Sign Up Here »

[Credit Check Tool: Try Credit.com’s Free Credit Report Card]

Frankle is also a big believer in avoiding the hype of a very expensive school. His middle daughter was accepted into NYU and the Berkeley School of Music, both of which cost $60,000 a year. “She wanted to study the music business and Berkeley was #1,” he says. But he knew there was a school “right down the street that’s #2 and it’s $20,000 a year.” Turns out, though, that she really wanted to go away to school, so they compromised on an in-state school not too close to home where Frankle says she’s very involved in the school, and getting a world class education.

His eldest daughter joined the Israeli Army, which is paying for her college education. “I am completely serious,” says Frankle. “That’s another strategy—join the Army.” Frankle also believes going to a community college for two years before going to a four-year university can be a good strategy. “Would you rather live at home (and go to a community college) for a couple of years, or be forced to live at home until you’re forty because you’re saddled with a lot of debt?” he asks.

He points out that most people don’t end up working in the field in which they got their degree, which makes the idea of going to a particular school because it offers a special major or program a gamble. He advises students to seriously consider what their goal is before they go to college. “Hopefully part of it would be to make a living when you graduate,” he says. “That being said, you should study something that will help you achieve that.” Some may learn they don’t need to go to college after all.

Frankle, who says he talked a lot with his daughters about their college choices and what those choices would cost them, has also insisted they learn how to budget and manage their own money. He likes the You Need a Budget software. His youngest daughter gets a fixed amount of money she has to use each month to pay for tuition, as well as all of her other expenses. “If she doesn’t have tuition money, she doesn’t go to school next year,” he says.

[Featured Products: Compare credit score, report, and monitoring plans at Credit.com]

Dig Deep, Cut Back and Get Creative »