12 Practical Ways to Graduate Debt Free in 3.5 Years

December 19, 2016January 23, 2018 ~ Linda Leier Thomason ~ 1 Comment

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.

Take advantage of AP Courses in High School

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

Dr. Hoiberg-50 Years- 3 Sons-Much Success

August 25, 2016December 18, 2018 ~ Linda Leier Thomason ~ Leave a comment

Eric O. Hoiberg was the second person I met in Ames, Iowa after parking my loaded, four-door, silver Plymouth Fury. The residence hall director was the first. Eric was my student advisor. I was a seemingly lost transfer student alone in a new town on a campus with a student body nearing the population of my home state of North Dakota.

To this day I recall the feeling of optimism and assurance I had leaving his office that August afternoon. I sensed I’d graduate as a Cyclone. I believed I’d succeed in the so-called real world post-graduation. He left me with the impression he believed in me, so I did in myself.

I received both my undergraduate and graduate degrees from Iowa State University (ISU) under his guidance.

Dr. Eric O. Hoiberg-an inspirational figure.

Die-Hard Cyclone

Hoiberg is a dedicated, loyal Iowa State University Cyclone, except for the fact that he earned 3 degrees (BA, MA, and Ph.D) at the University of Nebraska in Lincoln (UNL). He spent 21 years as a Sociology faculty member and advisor for and coordinator of the Public Service and Administration (PSA) program. Before retiring, he was promoted to, and spent 11 years as, the Associate Dean for Academic Affairs in the College of Agriculture. Hoiberg returned to ISU twice after retirement. Once to create an alumni program. Next as the Interim Associate Provost while a search was being conducted.

European Influence

Eric’s upbringing greatly influenced him. Born in Fayette, Missouri, he and his three older brothers and homemaker mother, accompanied his father to Germany directly after World War II during the Berlin Airlift. There his father, a rural sociologist, worked with the Reconstruction effort helping churches cope with the Holocaust and other ravages of war. The family returned to Europe several years later when his father directed a group establishing Turkey’s first Land Grant University. The family traveled extensively throughout the Muslim country, expanding Hoiberg’s view of the world. However, he also developed a deep appreciation for the lifestyle and subculture of farmers and small towns where many of his extended family members resided. This combination of academic readiness and world-wide vision made him an ideal university employee.

Researcher

His doctoral research at UNL was published in the esteemed American Sociological Review and centered on creating a new methodology for assessing neighborhood and community structure and change. A comprehensive survey of 700 Iowa farm families, which provided a baseline for the state of agriculture in Iowa in the 1970’s, was his first research venture at ISU. Eric also conducted research on farmers’ adoptions of new technologies and techniques, particularly environmental practices. And, he was part of a national research team that studied a series of six rural communities across the country, originally studied by the USDA in 1940. His team examined change over the roughly 50-year period.

Despite this nationally recognized research, Eric cites the growth of the PSA program as his most valued career accomplishment. “I took over the program in its infancy and grew it into a strong program attracting excellent students who went on to do some good in society.”

One of those students, Renny Olhava Crawford shared “I remember sitting in his class my sophomore year. By this time, I’d already changed my major 4 times. As I was listening to the lecture, all I could think was – I love this! I need to talk to him and learn how I can get more into this. So, I found a reason to go arrange a meeting, some question on an assignment, I believe. After “clearing” up my question, I just told him, “I really love everything we are going over in this class-how do I study more about this?” I think his response was “Well maybe you need to look into PSA”. He told me more. That afternoon I changed my major-and probably my life.”

Fellow PSA graduate John Bahr added, “Eric is one of the three key male figures who influenced my life. His guidance and insight helped me graduate from Iowa State. As a result, I learned discipline and gained academic confidence, which helped me to achieve personal and professional success.”

These Kids Now Days

Eric’s attitude and approach while working with students earned him numerous advising and teaching awards. He felt responsible to place curriculum in context so students gain an appreciation for the why and wherefore of courses they’re required to take. “There must be a link between the curriculum and the world of work they’ll be entering.”

He enjoyed students stopping by after a lecture to discuss how ideas/examples in class applied in their own lives. “This kind of discussion invariably increased my own understanding of the topic and reinforced that education is truly a two-way street.” And, he was frustrated when students focused solely on grades and test scores rather than understanding and communicating subject matter and applying it to their lives. “Evaluation is an important part of the educational process, but it shouldn’t be the only one.”

Over time he saw 3 key indicators that predicted student success: One, leadership experience in high school. “If a student came to PSA with extensive FFA experience, I could almost guarantee they’d be successful upon graduation.” Two, strong communication skills, and Three, a love for learning, indicated by a high level of intellectual curiosity and exploration. Today’s students also need a sound grasp of technical skills.

Hoiberg Family

In addition to guiding and advising countless ISU students, Eric and his wife, Karen, who just celebrated 50 years of marriage, raised three boys: Steve, Fred and Andrew. Today, they also enjoy the company of 8 grandchildren. “My greatest sense of pride comes from my children and grandchildren. I revel in their accomplishments, both big and small. They’re each unique in their own way but also integral parts of our family unit.” Fred, the wildly popular former ISU basketball player and coach, has struggled publicly with heart conditions. “His concerns have strengthened our family. We all recognize life is fragile and we should be thankful for the gifts we have.”

One of those gifts is time together in Northern Minnesota-Eric’s favorite getaway. Now fully retired, he and Karen enjoy the spontaneity of life while he’s tirelessly working on becoming a scratch golfer. “It doesn’t seem to be happening.”

Compassionate, Curious, Understanding-that’s my college Advisor-Eric O. Hoiberg.

Proud to know him and deeply grateful for his influence on my life.

Share with ISU Cyclones and others who know Professor Hoiberg.

Feel free to leave your comments for Eric below.

At an event honoring Dr. Eric O. Hoiberg during the Bacon Fest on the campus of Iowa State University on October 7, 2017. Still an inspiration and mentor to many, including me.

Check Under the Hood

October 22, 2015 ~ Linda Leier Thomason ~ 1 Comment

I bought a 4-door silver Plymouth Fury in 1979. I bought after being without wheels as a college freshman and relying on others for rides. Dad decided I needed to learn how to change a tire, open the hood and “check under the hood.” To this day I’m not exactly sure what I was checking for other than if there was enough oil and if it was clear. I went through the motions to make him feel better about sending me on the highway, praying I’d never have to really use the lessons he was teaching. Luckily, I’ve only been stranded once and it wasn’t for anything under the hood. It was a flat tire fixed by a kind farmer on North Dakota’s Interstate 94.

“Check under the hood” has stuck with me but the meaning isn’t as literal as the initial lesson taught that hot August afternoon on the farm’s gravel driveway. Instead it’s come to mean maintenance and protecting one’s investment. And as I age, holy smokes, I’m doing a lot of “checking under the hood.” So much so that some days I’d like to invest in a new model, one with fewer maintenance issues. And, I’m not talking about the vehicle either. Rather my body. Relate?

Today my annual physical is much like a 100,000 mile vehicle check. It takes a whole day and involves looking at everything from front to back to top to bottom. What needs further testing? What needs repair? What needs replacement? Question the recommendation. Get a second opinion. Make another appointment. See a specialist. Extract a part. Import a part. Sticker shock! Yikes! You get it.

Despite all this, I keep “checking under the hood.” I drive my vehicles until the wheels fall off-that’s a whole ‘nother story. Warren Buffet and I share that in common-if it ain’t broke-why replace it? Begrudgingly I schedule annual physicals, dental appointments and other wellness exams each time hoping to leave doing my best impersonation of a smiling Mary Tyler Moore tossing her hat jubilantly in the air celebrating life and all its glory.

“You’re gonna make it after all”…just keep “checking under the hood.”

Flew the Coop & Rooster Crowed

August 19, 2015 ~ Linda Leier Thomason ~ 1 Comment

The back to school images on social media recently are both heart warming and heart breaking, especially for empty nesters. We are happy, and even somewhat nostalgic, seeing photos of youngsters slightly stooped over with overloaded backpacks, smiling at the camera with butterflies in their bellies. We recall the years gone by when it was us taking the photos with butterflies of our own. We delight in your time, as we fondly recall ours.

Our 20-year-old son also left for school this week-his third year of college. We were lucky enough to share the summer with him as he completed an internship and lived with us in Omaha. Sadly, that was probably the last long-term shared housing we will experience as he creeps toward adulthood and independence. This year Alex has an off-campus apartment, is buying his own groceries, doing his own cooking and managing his own finances. Yes, we’ve worked hard as parents to get him to this point and we celebrate this milestone. However, we’d secretly like more time, and some days we even long for the four-year-old of past to lovingly wrap his arms around our necks and joyfully bounce on our laps. This is especially true for my husband and family provider, Ken, who has had less time with Alex than I have through the years. As the departure day drew near, Ken was looking for more hours in the day to spend with Alex and he’s felt his absence since-as any good father would, and does.

Each year I witness the growing bond between father and son. With slightly rebellious teenage years behind them, Ken and Alex are inching toward equals and share business and leisure interests. Dinner table conversation is dominated by talk of micro-economics, insurance lingo and sports standings. While I’m not enamored by the content, I’m joyfully celebrating the maturation and growing bond. It’s what every mother longs for-a connection between her children and their father, and herself.

Yes, this week lots of children made their way back to school. Here, ours flew the coop and while we celebrate, we also mourn, gladly and happily, if that even makes sense.

Headline: If you’ve read my “About” page, you will get the fowl reference.

What have you felt and experienced recently with the abundance of back-to-school photos on social media? Share. If you’re an empty nester, does the longing for years gone by this time of the year ever fade?

University of South Dakota Student Shares His Journey

Smart Planning, Hard Work, Sacrifice & Creative Thinking

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

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