I know most of my followers are over 17, so I’m not trying to rub salt in the wound here, but maybe you know a high schooler who could benefit from seeing this?!‎‎
‎‎
The difference between Nick and Nicole seems barely relevant. When they meet for a drink at 22 and exchange war stories about student loans, they both probably shrug their shoulders and think, “damn, that sounds like a lot of money”. But look at the massive ripple effect it has down the line. Mitigating just $20K of student loans generates almost $400K more in investments at retirement, with the EXACT SAME payments and investments made. Here’s some ideas on how to mitigate those loans:‎‎
‎‎
• Go to a cheaper school. I’ve been in charge of hiring for a lot of my career, and I can vouch that outside of a very few name brand schools, hiring managers generally don’t care where you went to college. (As I sit here I have trouble remembering where @vivitron or @moneywithshane went to college…) They care about your major. Your internships. Your work ethic. A valuable major from a cheap state school will get you WAY further than a useless degree from an expensive private school.‎‎
• Work. Research suggest that students who work get better grades. $20K over 4 years is $5K/year. That’s $416/month. You could make that working ONE NIGHT PER WEEK as a server or bartender. Would you work one night per week for four years if it came with a $400K bonus down the road? I would. And I’m already rich.‎‎
• Hustle to find scholarships. ‎‎
• Find summer job that offers tuition reimbursement. ‎‎
• Become a resident advisor or teacher assistant position that offers discount tuition. ‎‎
• Do your pre reqs at a community college that will transfer to your school of choice.‎‎
• Google for more ideas that I haven’t thought of here.‎‎
‎‎
And by the way, I think it totally sucks that we saddle our teenagers with this massive burden. It’s a messed up system. But that’s the way it works for now, so work the system before it works you.‎‎
‎‎
As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.‎‎
‎‎
-Jeremy‎‎