12 Practical Ways to Graduate Debt Free in 3.5 Years

University of South Dakota Student Shares His Journey

Alex Thomason graduated December 10, 2016 with a Bachelor of Business Administration in Finance degree with a minor in Entrepreneurial Studies from the Beacom School of Business at the University of South Dakota (SD) in  Vermillion. He graduated in 3.5 years and debt free.

The most frequent questions asked were HOW did you accomplish this without unlimited scholarships, loans or parental financial support when 44 million American borrowers owe nearly $1.3 trillion in student loan debt? How did you avoid an average monthly student loan payment of $350 after turning your tassel and collecting your diploma?

Click Here for State-by-State Information on Student Debt.

Smart Planning, Hard Work, Sacrifice & Creative Thinking

Alex is an only child. In some families this is the single most important variable to achieving a debt free college experience. Not ours. We voluntarily relocated from South Carolina to South Dakota at the start of the second semester of  8th grade. (Not the best planning to leave 82 degrees in January and arrive in sub-zero temperatures.). There were many roadblocks and challenges along the way. However, that relocation and the practice of Open Enrollment in the Sioux Falls, SD School District paved the way for most of Alex’s academic success and debt free graduation.

  • Get Career-Ready in High School

Middle school career tests revealed Alex has an aptitude for finance and business. He was encouraged to explore the Academy of Finance (AOF) within Washington High School (WHS). If you want to be a programmer, banker, baker, engineer or nurse, consider enrolling at a NAF-Be Future Ready affiliated high school. Most Academies offer college credits and paid internships. Some of his classes were taught by USD business professors. Others were led by high school teachers with real world accounting and business experience. Professor taught classes earned college credits. Credit hours were charged at a much lower rate than if he’d have taken those courses enrolled as a college student. Alex entered college with 7 credits-a half semester worth of credits before stepping foot on campus.

Passing Advanced Placement (AP) course tests earns college credit. Many high school students take advantage of AP classes to earn college credit before going to college. Because there was little leeway in the AOF core requirements, Alex only completed three AP courses. Explore AP courses while in high school. Early on, ask your guidance counselor about AP courses and which ones to take for your expected college major.

  • Start 529 College Savings Program

Teach savings and big picture thinking at a young age. [Consult with a tax or financial advisor for more information on 529 Plans.] Replace some toy and other material gifts with contributions to the Plan. And, when age appropriate, talk to your child about the Plan so they take ownership and are invested in the education savings plan.

Like most young boys, Alex enjoyed gaming systems. However, he was strongly encouraged to limit purchases and contribute half of all cash gifts to his 529 plan. It was a disciplined trade-off and difficult sacrifice. The rewards of this discipline are now fully understood as a young adult with degree in hand.

  • Work and Save While in High School

Yes, some families need the income from the jobs their children have while in high school to offset household expenses. If yours doesn’t, your child working while in high school is invaluable for future employment. Of course, the money earned and saved is excellent but so are the skills learned.

As one who’s hired and trained interns and new college graduates, I always gave greater weight to applicants with high school and college work experience. Having the discipline to show up to work, contribute fully on the job and manage a school and extra-curricular workload were signs of future success. Discipline, time management and dependability are timeless, valued skills learned while working as a young adult.

  •  Non-Traditional Contests

Unless you are cash rich and super smart, you’ll most likely have to find funds for college. Think about your strengths and your career path. Alex happened to like business and entrepreneurship. So, he did online research to find business plan and essay contests to enter. He found three business plan competitions in South Dakota:  The Big Idea, Bankers Association and The Governor’s Giant Vision Student Competition. Alex placed in all, earning $5500 in cash awards. He also won second place and $5000 in the South Dakota State Securities Division Essay Contest.

Keep in mind that these contests are student-driven. It is up to the student to take the initiative to come up with a business idea, enter the contests and meet the requirements. If you rely on the school or a teacher to lead you, you will be disappointed.

Whatever your interests, do the research to find contests with award money to offset college costs. The truth is few enter. It takes a lot of extra work. Those who enter are rewarded not only with prize money but invaluable experiences and professional connections.

  • Scholarships

Everyone knows scholarships are available for college expenses. In fact, go to any bookstore and you can find volumes of books with lists of available scholarships. Don’t forgot to look locally. Alex applied for a number of scholarships through the Sioux Falls Area Community Foundation. He was awarded several. The challenge he found was that our family income was too high and his GPA, while good, was not exceptional. He was caught somewhere in the middle. This makes the hunt more challenging, but not impossible. We did attend several poorly attended parent meetings at his high school on college financing. The information was good but, once again, scholarships seemed more readily available to those with lower incomes and those with superior academic grades.

  • Get a Great College Advisor

The value of a knowledgeable college advisor cannot be stressed enough. There are certain classes that must be taken and passed to earn a degree. Sometimes these classes are only offered certain semesters. Missing a class can postpone one’s graduation by a semester. Therefore, being assigned a great college advisor and taking ownership of one’s own path through college are essential to graduating on time.

  • Choose Right College

Alex was fairly certain he wanted a career in insurance and/or finance upon graduation. There are certain colleges that specialize in risk management and insurance. The summer before his senior year we visited three: Florida State University, the University of Georgia and Georgia State University. Each offers an outstanding curriculum. After touring each school and meeting with professors and department leaders, Alex chose to continue with the professors and the coursework he had started at USD while a WHS student.

On his own, he calculated the expense associated with out-of-state tuition and forecasted projected income post graduation. The fact that the Beacom School of Business has an accreditation from AACSB and regularly appears on the US News & World Reports Best Colleges Rankings List played a part in his choosing USD.

  • Work During College

Alex was so focused on graduating college without debt that he worked during college. He got up early and served breakfast to hotel guests and for the last two years worked on the campus grounds crew. He did everything from trimming grass to shoveling snow to planting trees. This was manual labor totally unrelated to his career choice. However, he took great pride in the appearance of the university and the safety of students and staff, even returning to campus while on winter break to shovel sidewalks and de-ice steps. Graduating debt free was the goal and he took pride in whatever job he did to achieve this goal.

  • Share the Rent & Buy Used Books

I have to admit that the roommate issue concerned us. We wondered how he’d adapt to sharing space with another student since he’s an only child. It didn’t matter. He easily adapted and had a roommate every semester. He lived on campus the first two years and off the next year and a half. Alex also researched the most affordable sources for classroom books and sold them back when the class was completed.

  • Take Online Summer Classes

Alex secured two summer insurance brokerage firm internships. In addition to working 8-5, he took online courses for two summers. Once again, this takes discipline and focus. Instead of going to the beach or attending parties, he was working and studying. He did have fun, but  kept his eye on the prize-graduating in 3.5 years debt free.

  •  Drive a Used Car, Drink Water + Choose Friends Wisely

Social costs of college can add up. Beer drinking and partying are expensive. Alex visited fraternities, but chose not to join. He decided there would be little time between studying and working to participate in the many charitable and social events offered. It’s worth noting that friends greatly affect student success. Alex has always chosen friends who share his values. It’s both a skill and a gift.

Alex is driving a 3rd generation car. It doesn’t have anything fancy on it, but it does get regular oil and tire changes. The moral of the story-keep costs down and only buy what’s necessary.

These are the 12 ways one student achieved his goal of graduating in 3.5 years debt free with a B+ average. 

What other ways can you add? List them below in the comment section.

Share with families in the midst of college financial planning. They will thank you!

Linda Leier Thomason is a former CEO who writes freelance business and travel stories, along with feature articles. Her work experiences include a Fortune 500 corporation, federal government, entrepreneurship and small business. Find out more about Linda by clicking the “Meet Linda” tab above. Interested in working together? Complete this form below.

©Copyright. December 2016. Linda Leier Thomason

All Rights Reserved.

 

 

 

 

 

 

Are You Raising A Brat? 10 Ways to Avoid It

A mom of two elementary school aged children reached out to me recently seeking guidance on raising good children. Her note ended by asking, “What is the secret to not raising a brat?” That’s a term I hadn’t heard in a while. I thought she must be doing a lot of things right already. She’s concerned about coaching her children to be good citizens. Few parents would have the courage to even consider asking this question.

parents-weekend-usd-2015-10-24-15-029She is right though. Our son, soon to graduate from the University of South Dakota’s (USD) Beacom School of Business, has never been a brat. He’s also an only child. Some would use that status alone to label him “a brat.” It doesn’t fit him. Never has.

I thought about this mom’s question for several days. I wondered if I was qualified to give parenting advice. I am a parent. I am also a child. I observe other parents and their interactions with their children. I listen to teachers and support staff describe child behavior in schools. I’ve read extensively about parenting. I decided I’m qualified to share how my husband, Ken, and I raised a son who has never been labelled a “brat.” Maybe our approach to parenting will guide her, and others, in raising their own good children.

Top 10 Ways to Avoid Raising a Brat

Parenting is not easy. We were hardly perfect. We understood our individual “being raised” experiences influenced our parenting Alex. We were in our 30s when he was born. Both our mothers stayed at home with their children. I was raised in a family of 11. Ken’s family had 4. Alex was born and raised in Charleston, South Carolina. All of this made us who we are as parents. Sorting through our 21 years, I consider these to be the  10 Ways Not to Raise a Brat:

  1. Choose the right partner. Parents who share similar parenting values and who support one another in terms of setting boundaries and household rules will more likely have better behaved children. The kids will know both parents will give the same answer and likely discipline in similar ways. There’s no pitting one parent against another.
  2. Thoughtfully consider when to become a parent. Life isn’t always planned. But, when one feels ready for the responsibility of parenthood alex-toddler-2-copyand welcomes the role, one will more likely cherish being a parent rather than resent it. You can’t take parenting back. It’s a lifetime commitment. Children need to be nurtured, not dropped into life to survive alone. Make the time for your children. Show them they matter and that you feel blessed to have them in your life. If you aren’t ready to do this, or simply can’t, consider whether you are ready to become a parent.
  3. Say “No” and mean it. It is always easier to give in than it is to say “no.” Parents need to stand by convictions. Kids are smart. They push limits. If you back down, your word is no longer good. You’ve shown you’re easily manipulated. Set limits and stick to them.
  4. Plan a Family Centered not Child Centered Life. It was, and is, our belief that a child should fit into one’s life not become the center of all’s life. As a simple example, I refused to remove breakable household objects when Alex was born. Instead, I taught him to respect these items and that there were consequences for not following through with that lesson. Of course, we latched cabinet doors with dangerous items. But removing breakables. Absolutely not.
  5. Place Higher Priority on Morals and Values Over Material Goods. My background taught me many lessons on being frugal and setting priorities. I role modeled these while raising Alex. For example, part of me wanted a designer nursery and designer clothing for him. The practical side of me, however, understood how little those items would be used in Alex’s lifetime. Instead, we started a 529 College Savings program and bought consignment furniture and clothing. We made trade-offs like this continually, placing greater emphasis on experiences than material goods and savings over spending. I helped him, when he was  a middle school student, create flyers to hand out to neighbors advertising his lawn mowing skills. He also paid us for the gas to support his early business. Of course, we could afford to pay for it. But where else do you learn that there are costs of doing business?
  6. Expect Good Behavior. Set the bar high. Despite what one sees in restaurants, church and other public places, it is not cute when a child acts out or is disrespectful. I wonder about a child’s future when I see parents allowing children to throw food in restaurants and then smile at adults who look at them wondering how they are allowing this to happen. It speaks volumes about the parents and their ability to guide their children to adulthood. How one’s children behave reflects parental values and maturity. We worked hard to make sure Alex behaved in public places so all there could enjoy the experience.
  7. Respect All, Always. Listen. Compromise. Ken and I continually stress the importance of ‘listening’ as a skill. We work hard to model that to Alex, even to this day. Following close behind that is compromise.
    Practicing listening skills
    Practicing listening skills

    Even as an only child, he was taught that he didn’t always get his way. Life doesn’t center around one person. It’s a give and take. Admittedly, this was sometimes challenging to teach because of his status. My thinking, as the only woman in our family of three, was that I was raising someone who may one day become a husband and father. These life lessons/skills are critical in those esteemed roles. Respect is another trait we value. Ken is especially good at role modeling equal respect for service workers and corporate executives. Referring to adults as Mr. and Miss, though some call this antiquated Southern etiquette, is applauded in our household. It’s an outward sign of respect. We value it.

  8. Work for What You Want. Ken and I differed on this concept often. Sticking to our parental core values on this topic was by far the hardest in raising Alex. I had to work for everything I’ve owned, even my education. We were in a position to offer Alex financial assistance with more than I received. He was very aware most of his peer group was given vehicles, allowances, vacations, spring break trips, etc. without working. At age 14 we required he get a part-time job. It taught time management, money management, work habits and how to get along with others in the workplace. I also knew it could teach him about how organizations were managed and places he’d like to work, or not work. I have no regrets about requiring he get a job. He’s had a job ever since. He’s also graduating debt free, which is to be celebrated.
  9. Appreciate What You Have and Receive. If you work for what you have, you appreciate it more. You have a better understanding of what it takes to get it and value it more too. Unfortunately, parts of South Carolina are quite poverty-stricken. Alex has seen those areas as well as been in third world countries. Our goal was to expose him to sites like this to develop an appreciation for what he has. Instilling the concept of appreciation and thanks has been drilled into him. He left home knowing a note of appreciation or thanks was expected when a gift or act of kindness was received. Not doing so would immediately stop future acts. It’s just that important in our house.
  10. Raise a Graceful Loser and a Humble Winner. I can still recall the feeling
    Graceful loser at state high school tournament
    Graceful loser at state high school tournament

    and sights of Alex’s first soccer match at age four. He scored every goal. The team won. No, he didn’t take his jersey off and wave it above his head as he circled the grassy field. Instead, after each goal, he mildly accepted congratulations from teammates and got back to the business of playing the game. I was breathless. That level of maturity and composure as a competitor escaped me. I played to win and to celebrate the win. That day I learned from him. I learned the value of how to become a humble winner and a graceful loser.

The Child Spoke

I suspect this young mother who asked me “What is the secret to not raising a brat?” would get different responses from anyone she asked the same question to. I was curious about how Alex would answer. I sent off a text. His reply, “Let consequences happen instead of intervening.” Enough said.

How would you answer the question? Comment below.

Linda Leier Thomason is a former CEO who writes freelance business and travel stories, along with feature articles. Her work experiences include a Fortune 500 corporation, federal government, entrepreneurship and small business. Find out more about Linda by clicking the “Meet Linda” tab above. Interested in working together? Complete this form below.

 

©Copyright. October 2016. Linda Leier Thomason

All Rights Reserved.