Debt-Free U

College, America's Myths

Four peeps you can't trust for choosing colleges

High school counselors

Admissions officers

Financial aid officers

Family & Friends

Myths

The college must be elite

Cost is irrelevant, school quality is everything

The quality of the school will affect my career opportunities

Just don't borrow

Actually low-IQ borrowing options

  • Borrowing from 401k
  • Using 401k hardship

The Parent PLUS loan, which is just parent debt

borrowing from any retirement funds

Nearly all of this pings your financial aid eligibility anyway

The FAFSA can't calculate for shit

The FAFSA docks student's savings 35% as part of the student's EFC. That's absurdly large.

It doesn't account for long-term predictor's of financial health

  • Credit Card debt
  • Retirement funds
  • home equity value

Save by downsizing

  • live poor, don't buy frivolous indulgences
  • get a 2nd job
  • sell your junk
  • stop smoking
  • don't get any new monthly payments (like a new car)
  • Stop spending a lot of money to vacation

Financial Aid

Don't expect great packages, be wary of ones that are basically a filler of loans work-study predictions

Getting a lot of 3rd party aid could meaningfully hurt your FAFSA consideration