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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