It was an honor to be invited to spend a few days on the campus of Indiana Wesleyan University to speak to the students on money matters—specifically the student loans many students will take with them as part of their college experience.
Remember the days when to get a loan you had to qualify and prove you had the capacity to repay the debt? Well, for college students those days are history. They do not need to have a job or a co-signer to get huge amounts of money both in federal student loans. From what I discovered on my visit, students (and their parents in many cases) are more than willing to accept as much as they can get in federal student loans because these days that’s just the normal way to pay for college.
But here’s the good news. These young adults are willing to listen to advice from someone who’s been around the block with debt. Seizing the moment, I told them:
Accept the least amount of help possible not the most available. Just because you can borrow enough money each semester to pay for tuition, room, board and books doesn’t mean you should. You’ll never believe how difficult it is to pay back. Check yourself out of governmental outpatient care. Get a job. And in the summer get two jobs or three. Finish your degree as soon as possible instead of taking it slow and easy. Make your own way as soon as possible and you’ll reap the benefits for the rest of your life.