Should You Borrow Money For College

With the cost of attending college becoming increasingly more expensive, Dollabuzz discusses if should you borrow money for college and why borrowing money may not be in your best personal financial interest.
Student begging for moeny
Borrowing money to attend college can hurt your personal finances. Don’t fall for the student loan lie.
Today’ s Post Will Cover:
  • The student loan lie
  • How you can attend college without borrowing money and,
  • Alternatives to college that will land you a great paying job

Hello Dollabuzz readers! Today, we are going to discuss the crazy cost of college and how it can have a negative impact on you personal finances. Don’t get me wrong, in general going to college is a great idea. A college degree can enhance your earning potential exponentially but at what cost?

I hear and read stories from people with thousands of dollars in student loans debt and the hardship it places on the personal finances. Having to pay thousands in debt makes it difficult to save money for a house, begin investing, and getting you life started.

So why do we do it? Why do we jeopardize our personal financial future to go to college? At Dollabuzz, we think it is because we are being lied to.

The Student Loan Lie

There is a myth surrounding college. The myth is more like a LIE that a lot of people accept. That myth or LIE is you HAVE to go to college to get a good job and college is paid for by taking out student loans. This myth is accepted by our society as evidenced by over 40 million student loan borrowers.

In 2016 the average student graduated with $37,000 in student loan debt. Assume you pay the loan back in 10 years and that $37,000 will cost you about $14,000 in interest for a total of $51,000. Investing that money in your 401k or Roth IRA will allow you to become a millionaire.

Image result for borrow money
Should I Borrow Money For School? Only If You Want To Pay A Large “Hidden Cost.”

 

In addition to the negative impact on your personal finances, the student loan LIE impacts your health. Per a recent MarketWatch story stress and worry over student loans cause you to lose sleep. Numerous studies show the relationship between sleep and health.

So how has this LIE become accepted?

We here at Dollabuzz think this LIE has become accepted due to “herd mentality” and the media.

Hold up, wait a minute. Herd what?!
college kids drinking beer
Going to college can be fun but don’t go broke doing it

Herd mentality is essentially doing something because other people are doing it. It is in our nature to do what other people do. Its easier to take out $37,000 in student loans if people you know are doing the same thing. Its easier to get drunk and yell like an idiot at the big game when you are with 60,000 other drunks. See how it works?

So now its the media’s fault?

Well kind of. The media does perpetuate the LIE. Is this intentional? Don’t know. Don’t care. But it appears some members of the media are caught in the herd mentality. Lets go back to that MarketWatch story linked to above. The second to last paragraph specifically. A personal finance columnist for NerdWallet is quoted saying “Everyone knows you need to go to college, or post-secondary training if you want to stay in the middle class now, but the cost keeps going up.” Lets break this statement down Charlie Brown.

First, the word “everyone knows” implies the herd mentality is in play here. Phrases like everyone, no one, always, and never are seldom 100% accurate. Everyone thought Hillary Clinton was going to win and Donald Trump was never going to win the election. Everyone thought the Patriots were going to win. These two examples show the power of the herd mentality.

Secondly, the cost of college keeps going up but it’s due to student loans. Colleges can charge whatever they want because they know students will take loans to pay for school.  Students THINK they have to take out loans to attend college because it is what everyone does. Talk about a vicious cycle wrapped around herd mentality!

Should I Borrow Money For School?Exception To Every Rule

What if I really need to borrow money for school? There are exceptions to every rule.  A small amount of student loans ($10,000 -$15,000) is acceptable IF and only IF the money is truly needed and there is simply no other way. And please, please don’t spend your student loan money on beer and weed.

Image result for beer and weed bong
Don’t spend student loan money on beer and weed.

How you can attend college without borrowing money

Here are two ways to attend college without borrowing money:

Community College

Attending community college is a great way to attend college without borrowing money. Community college is much cheaper than a four-year school and in my experience much easier too. Save money and a higher GPA? That’s an easy Dollabuzz lick.

After two years at a community college, you will be able to work your way through the remaining two to three years of school. Working full-time while attending school is a lot of work but will save you a ton of money and that’s what Dollabuzz is about, YOUR money.

National Guard

The National Guard offers numerous ways to pay for college while serving your country.

Alternatives to college that will land you a great paying job

Check out skilled trades program. Here a few skilled trades that pay very well and offer a ton of career flexibility.
Electrician:  See more at electrician salary
Plumbers: See more at plumber pay.
HVAC: See more at HVAC techs and  HVAC salary
Cosmetologist: This profession offers A TON of flexibility. If you work hard, market yourself, and are good with people you can make very good money. Women will pay quite a lot of money for their hair, nails and can and are loyal customers. Cha-Cha-Ching! Cosmetology is a job you can do from home or take on the road. Pop up manis and pedis. How cool is that?! Here is a good blog post cosmetologist
Insurance Agent: This another profession with career flexibility. If you work hard, market yourself, and are good with people you can make very good money. Insurance agents are licensed in their state of residence and here is a great resource.
Should You Borrow Money for College – Dollabuzz Takeaway:
  • Don’t follow the herd and borrow a bunch of money to go to college.
  • Explore options like community college and the National Guard to help pay for college
  • Check out other career paths like the skilled trades. Think outside the box.
  • Use your creativity to determine your career path.
  • Know your strengths and weaknesses.
  • For more more options see high paying jobs that don’t require a bachelors degree
Avoid the student loan LIE and Dollabuzz. Yay Yay!

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