Col­lege, mi­nus the crush­ing debt Some schools try no-loans pro­grams to ease bur­den

Orlando Sentinel - - SUCCESS - El­liot Raphael­son wel­comes your ques­tions and com­ments at raphel­[email protected]

stu­dents and their par­ents fac­ing such large ex­penses, even for pub­lic schools. Stu­dent loan debt in the U.S. has reached more than $1.5 tril­lion among 44 mil­lion bor­row­ers.

I re­cently checked the tu­ition and fees of the full-time two-year pro­gram at the Tep­per School of Busi­ness at Carnegie Mel­lon, my alma mater, and it’s just un­der $69,000 per year.

What op­tions do stu­dents have to­day? One op­tion worth con­sid­er­ing is at­tend­ing a col­lege that has a “no-loans pol­icy.” That ti­tle is de­cep­tive, be­cause even at col­leges that of­fer this type of pro­gram, many of the stu­dents still face pos­si­ble loans. I’ll ex­plain some of the ba­sics as­so­ci­ated with these pro­grams. More in­for­ma­tion can be found at Sav­ing­forCol­lege.com.

Here is an ex­am­ple as to how this pro­gram can work: As­sume the ex­pected to­tal cost of at­tend­ing a col­lege of­fer­ing such a pro­gram is $60,000 per year. The school in­di­cates that it ex­pects the fam­ily to con­trib­ute $30,000 per year to­ward the cost. The re­main­ing $30,000 would be cov­ered by grants and on-cam­pus part-time jobs. If $20,000 comes from a grant, that would leave $10,000 to be cov­ered by part-time work.

The stu­dent could de­cide to con­cen­trate on stud­ies and not work part time. Ac­cord­ingly, he/she could then bor­row $10,000, or per­haps a smaller amount if he or she is will­ing to ac­cept jobs which would re­sult in an amount less than $10,000 for that year.

Ap­prox­i­mately six dozen col­leges and uni­ver­si­ties of­fer this type of pro­gram, ac­cord­ing to Sav­ing­forCol­lege.com.

Some schools have re­stric­tions based on fam­ily in­come; some have no such re­stric­tion. Each school de­vel­ops its own pol­icy, so there are sig­nif­i­cant dif­fer­ences among these schools.

The col­leges of­fer­ing this type of pro­gram in­clude Amherst, Brown, Columbia, Har­vard, John Hop­kins, MIT, Prince­ton, Penn­syl­va­nia, Stan­ford, Swarth­more, Van­der­bilt, Wash­ing­ton & Lee and Yale.

Some of the schools have stu­dents grad­u­at­ing nearly debt-free.

Ac­cord­ing to the Fed­eral Re­serve Bank of New York, among 2018 grad­u­ates, 69% of stu­dents took out loans, and they grad­u­ated with an av­er­age debt of $29,800.

There are other ways to min­i­mize stu­dent debt. One is to start out at a ju­nior col­lege or a state uni­ver­sity, which are much cheaper than pri­vate col­leges, and then trans­fer to a more pres­ti­gious in­sti­tu­tion. An­other op­tion is to at­tend a pub­lic uni­ver­sity for all four years.

The schools that of­fer no-loans pro­grams in­clude some of the most pres­ti­gious col­leges in the United States. A de­gree from a top-rated col­lege will lead to bet­ter job op­por­tu­ni­ties after grad­u­a­tion. So, it makes sense for stu­dents to at least in­ves­ti­gate the op­tions avail­able at the schools that of­fer these pro­grams. Hav­ing lit­tle or no debt after grad­u­a­tion — and bet­ter job prospects — are cer­tainly wor­thy ob­jec­tives.

DREAMSTIME

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.