How To Pay For College

Going to college without debt is possible!

Brenda’s with us in las vegas hey brenda welcome to the dave ramsey show hey hey what’s up well my husband and i have been we started saving for our children’s college education and with our oldest starting college and just a little over two years i just feel like we are way behind and i would love some advice on what i need to do what we need to do to properly

Save for our children’s college education what’s your household income my husband’s a pastor so our actual take home page is kind of a little bit different but monthly when we bring home around $5,000 a month okay and you have two kids you have kids at what ages two kids 16 and 14 okay and how much do you have saved now in the education savings we have about

Fifty eight hundred dollars in our general savings i have a little over five thousand dollars okay and then we have kind of vacations and savings which right now about three hundred okay well basically what we’re saying is is in two years you’re gonna have probably not even half of what you need probably not even afraid probably not even 1/4 of what you need and

So there’s a couple things you need to do if a kid wants to go to school debt-free and doesn’t have any money or has limited money and that’s we’re kind of between no money and limited money in this discussion so the first thing is that you need to really get a realistic grip on the number one cause of student loan debt is college choice people choose a freakin

College that broke people don’t need to go to yes you have a college in mind already so i don’t hear at college yeah i care they don’t get to make the decision right they’re teenagers they need help and they need those things parents because you know if you participate in the decision for them to go to a $45,000 your school you are pretty much ensuring your child

Is going to hate you when they’re 30 because they’re going to be looking down the nose of about a hundred thousand dollars in student loan debt right and we want to avoid that so where you go to school matters and so basically these kids are going to in-state state schools and or community colleges for the first two years to get their basics out of the way for

It a little to no money at the community college and then finish up at an in-state state school here’s the interesting thing there’s almost no jobs and almost no degree fields that care where you went to school i have never gone to a doctor and went oh i can’t let you look at me because you went to the wrong school i have never hired an attorney this i said well

We can’t get you to work on us because you didn’t go to george washington you know i have never never one time have i hired somebody in this organization based on where they went to school or didn’t happen so that garbage is out there floating around but in the real world it doesn’t exist okay nobody asks nobody has ever denied your husband a position as a pastor

Based on where he went to seminary unless it was a doctrinal issue indicated by where he went to seminary but not based on the quality of education okay yeah and so you know that’s not that’s just not the case so there’s this garbage if you have to go to some big-name school or those of us that are christians sometimes my fellow christians want to send their kid

Only to a christian college because it’s like they’re going to go to hell if they don’t and maybe they could be salt and light in the communion in the community college maybe they could be salt and light in the public college because these kids ain’t got the money for christian school i can’t write you can’t forget you can’t afford lesson let’s get hard percent

Free ride so number one is college choice number two is they are going to be working while they’re in school and before they get to school did you go to college i did did you work while you’re in college i did yeah me too and i came out of college 100% debt-free though i had no student loans me too well no i had $3,000 i’ll take that back in student loans but that

Was before i was dave ramsey so i had hair then so anyway the so they’re going to be working number two number three their job right now starting now is to take start taking the ac t and take it again and take it again most schools are now super scoring the ac t which means they take you the best of if you take it three times they take the best science score you

Got of the three they take the best math score of the three they take the mat best english score of the three and they put them together and that’s called a super score and that becomes your ac t score and then every time you take it you take mentoring and tutoring in between that’s a good thing to spend money on on how to take the tests so that you next time you

Take it your score goes up all three of my kids took the test more than twice okay right make it more than actually i took it twice yeah and and and every time their scores went up by the way because we did just exactly what struggle met and then that leads us into number four which is scholarships they are now in the i won a scholarship business and and it can

Be based on their christian faith and their mission work that they’ve done and the citizenship that that represents into the citizens of the world or citizens of the culture or whatever it can be based on academics it can be based on but it’s usually just based on somebody’s giving away a scholarship and the kid that has the best essay the turns it in gets it and

There’s millions and millions and millions of dollars that go unclaimed every year on scholarships and so you go to something like my scollay comm or some of these other services that are online and your child needs to fill out 1,000 scholarship applications between now and the time they go to school literally okay literally not 100 because they’re gonna get turned

Down from 900 on them or maybe not under 50 of them but if they get fifty scholarships an average of thousand dollars a piece they just went to school great part-time job for a teenager so scholarships work a ct and overall college choice you do all of those things you can get through school now because if you start looking at an in-state tuition versus a private

Education that you can’t afford you’re gonna see it’s 5x college education is going to be 5x call you know and what happens though is is that people let their teenagers make these decisions in a vacuum based on the town is pretty and so i want to go to school there or based on i’ve always thought i wanted to be a phd in german polka history i want to study something

That has absolutely no applicable use in the marketplace and so your job is mom your job as dad is to parent these kids and they are kids i know they look like they’re grown up and all that kind of stuff but they’re not because every one of us that have been 18 years old or shaking our heads going we were stupid and we needed parents that’s how people get a hundred

And fifty thousand dollars in debt because their parents aren’t involved and they make stupid decisions about education isn’t that oxymoronic that we make stupid decisions about education think about how dumb that’ll phrase i just said is this is the dave ramsey show

Transcribed from video
How To Pay For College By The Ramsey Show – Highlights