As we all know debt is a liability or obligation to pay or render something. Unfortunately many of us find ourselves biting off more than we can chew in this regard. In fact, some friends told me recently they are so far in debt with their student loans they have just stopped paying them all together, because in their words, “It was hopeless.” I can’t image feeling that level of despair, although I have my fair share of debt as well. I don’t want anyone to feel that way.
If you’re considering going to school, and I believe you should, than you should have an entrance and exit strategy so not to end up like my friends. And contrary to popular belief entrance and exit strategies do work, the key is actually having one to begin with.
Did you know the average cost of tuition, over a 4-year span, ranges from $12,500 in public schools to $27,000 for private institutions per year? That’s a lot or debt one can amass in a relatively short period of time. Can you handle a $100K student loan repayment? I know I couldn’t swing it, nor would I want to. So let’s come up with a creative solution to help you avoid an insurmountable mountain of student loan debt on graduation day. This article will focus on an entrance strategy.
Consider a Community College for the first couple of years. Why? It is far more economical. I am currently attending Massasoit Community College in Brockton, Massachusetts and the cost is $111.00 per credit. I am taking two three credit courses this semester which is costing me $666.00. Next year I will be transferring over to Bridgewater State College to finish my degree program and earn my Bachelors degree. The current cost at BSC is $333.00 per credit hour. Simple arithmetic shows I would have been spending $1,998.00 for the same amount of credit hours this semester if I took them at BSC. That is a 3:1 ratio and a savings of $1,332. You don’t need to be an economics major to appreciate that savings. In addition, many of the professors which teach at my college also teach at BSC. The only disclaimer is that you will want to make sure the classes you are taking are transferable; so check with your school’s Admissions office.
|
Massasoit Community College
|
Bridgewater State College
|
|
60 credits
|
60 credits
|
|
$111.00 (tuition per credit hour)
|
$333.00 (tuition per credit hour)
|
|
Total cost: $6,660
|
Total cost: $19,980
|
|
Savings: $13,320
|
Savings: $0
|
If you fore fill your core requirements at a Community college, like I did, you may save yourself thousands of dollars by graduation day.
Just remember each individual needs to chart his or her own course. What is right for you isn’t always right for someone else. But one thing we can all agree on is money. We all need it. They say money talks, and it’s true. When it talks to me it says, “David, you are wise and practical.” What does your money say to you?
