Achieving a College Degree and the American Dream, Debt-Free!: How to Earn a College Education Without the Burden of Student-Loan Debt

By Charles R. Green M.S. Ed.

If you’re a teacher, legislator, or parent who’s encouraging students to go to college, but are concerned about today’s high cost of education and how they will pay for college, look no further.

The answer and methods to a debt-free college lies within this book. However, you must do your homework, take responsibility for your financial life, your actions and your future.

The easy but long-term painful way is to take out loans or – even worse – charge tuition bills to a credit card. After reading this book, you’ll know how to:

· provide a financial education to children while they’re living with you or in your class;

· ensure children use student loans (if they’re necessary) for the right things;

· find alternatives to help students pursue a debt-free college education;

· avoid predatory lending practices that endanger the future for individuals and their families.

Student loans will not guarantee the American dream; in fact, they may guarantee the loss of it. Will your college graduate, former student, or constituent be left wondering, “If I’m so smart, gifted, and educated, then why am I so broke?”

Whether you’re a parent, educator, legislator, or college-bound student, you’ll learn how college students can navigate the challenges of paying for an education with the lessons, insights, and alarming data in Charley’s America.

www.charleygreen.com

• Language: English
• Publisher: WestBow Press
• Release date: Feb 5, 2020
• ISBN: 9781973684084

Charles R. Green M.S. Ed.

Charley’s journey has taken him from the eastern farm hills of Kansas to military service, college administration, and the real estate industry. He has degrees in business and education plus an extensive background in management. His career as a professional entertainer and author began later in life. What he shares—in an inspirational, humorous, or informational way—is a direct reflection of his life experiences. Many of his stories are of various people he’s met along the way, some who inspired him, some who opened doors, and a few who tried to discourage him. He also tells of life events that challenged the depth of his faith and situations that gave him hope, inspiration, and courage to follow his dream. His research on student debt has given him a unique insight into the social and economic impact of this oftentimes overwhelming albatross. His books are directed toward parents with a focus on college cost, impact of long-term student loan debt, and career choices. He believes it’s important for parents to work with their children in developing self-reliant plans to minimize dependence upon student loans while focusing on the right college degree and financial freedom. One of his books, Debt-Free College Education or a Debtor’s Burden?, challenges the way parents, students, and educators approach a college education. Charley’s goal is to encourage them to choose the path of opportunity and financial literacy versus one of student loans, credit card debt, and debt suffocation. The Debt-Free College Education series is designed to assist and guide parents as well as educators in helping future collegians develop self-reliant attitudes in their career pursuits along with realistic financial plans. Charley’s presentations are informative and timely. They challenge the way parents, students, and educators approach a college education. Contact Charley at [e-mail] for interviews or to schedule a presentations to your group or organization. You can also find him on Facebook as Charley Green, Author. The Debt-Free College Education Series is designed to assist and guide parents as well as educators in helping future collegians develop self-reliant attitudes in their career pursuits along with realistic financial plans. Other books available at www.CharleyGreen.com: How to Keep Student Loans From Threatening Your American Dream Debt-Free College Education or A Debtor’s Burden? The Reluctant Warrior: The Journey Begins Will Rogers and Charley Pamphlet: “Seven Things You Must Know About Student Loans: The Good, The Bad, and The Ugly”

Book preview

Copyright © 2020 Charles R. Green, M.S. Ed.

All rights reserved. No part of this book may be used or reproduced by any means, graphic, electronic, or mechanical, including photocopying, recording, taping or by any information storage retrieval system without the written permission of the author except in the case of brief quotations embodied in critical articles and reviews.

The information, ideas, and suggestions in this book are not intended to render professional advice. Before following any suggestions contained in this book, you should consult your personal accountant or other financial advisor. Neither the author nor the publisher shall be liable or responsible for any loss or damage allegedly arising as a consequence of your use or application of any information or suggestions in this book.

WestBow Press

A Division of Thomas Nelson & Zondervan

1663 Liberty Drive

Bloomington, IN 47403

www.westbowpress.com

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Because of the dynamic nature of the Internet, any web addresses or links contained in this book may have changed since publication and may no longer be valid. The views expressed in this work are solely those of the author and do not necessarily reflect the views of the publisher, and the publisher hereby disclaims any responsibility for them.

Any people depicted in stock imagery provided by Getty Images are models, and such images are being used for illustrative purposes only.

Certain stock imagery © Getty Images.

ISBN: 978-1-9736-8409-1 (sc)

ISBN: 978-1-9736-8408-4 (e)

Library of Congress Control Number: 2020902376

WestBow Press rev. date: 2/5/2020

My Debt-Free series of books is dedicated to my son, Jeff, and his children, Becca, Regan, and Peyton. I hope that the knowledge and lessons within these pages will guide them as they embark on this great journey of higher education and self-reliance without the financial burden of student debt.

Contents

Preface

Introduction

•   What Is Middle Class?

•   Why Is the Middle Class Struggling Today?

•   Reality Check

Chapter 1   The Good, the Bad, and the Ugly

•   The Good

•   The Bad

o   Overall Statistics

o   Set Up for Failure

o   Legislated Slavery

•   The Ugly

o   Legalized Raping and Robbing of College Graduates and Parents

o   Parent PLUS College Loans

o   What Is Predatory Lending?

o   Beneficiaries of Student Loan Defaults

•   The Devil’s in the Details

o   Review

o   Call to Action

Chapter 2   Parents

•   Parental Naivete

•   Status and Ego

o   Affordability

o   Expectations

•   An Ounce of Prevention

o   Life Is a Business, and You Are Your Business

o   Acquire Knowledge and Budget

•   Tuition and Fees

o   Hidden Agendas

•   Credit Cards 101

o   Credit Card Strategy

o   The Fine Print

•   Teachable Moments

o   What’s the Cost?

o   Be a Pragmatist First

•   Cosigning

•   Plan to Win

o   A Master Plan in Action

o   Make It a Family Affair

o   Discuss Money and Success Topics at the Dinner Table

o   Commitment

•   Modeling and Mentoring for Results

o   The Man of La Mancha

o   Joshua and Gideon

•   Taking Command of Income

o   Money and Income

o   Parable of the Talents—Matthew 25:14–30

o   Rule of Thumb on Income

•   Spending and Saving

o   Needs versus Wants: Knowing the Difference

o   The Friendly Hometown Banker

•   Being a Value-Based Consumer

o   Buy a Used Car

Chapter 3   Investing in Success

•   Purchase a Rental Property

•   The Law of Mind/Action

•   Tithing

•   The Law of Attraction

o   The Importance of Networking

o   How Can I Help?

o   Encourage an Active Role in Student Organizations

o   Follow-Up

o   Value-Based Foundation

•   The Doing Phase

o   Apply for All Grants and Scholarships

o   Work for the College, Provide Services, and Barter

o   Student Employment

o   Tuition Credits, Discounts, and Reimbursements

o   The Military Option—a Great Way to Pay for College

o   Other Possibilities to Investigate

•   Value of Working

o   Down and Dirty Pays

o   Earning Their Way

o   Using Special Skills

o   Food Service Opportunities

o   Earning and Learning

o   Summer Jobs

•   Entrepreneurial Opportunities

o   Create an Investment Fund

o   It’s Party Time

o   Business Services

o   Lawn Care and Related Services

o   Vending-Machine Routes

o   Dormitory Services

o   Transportation Needs

o   Farm/Ranch Opportunities

o   Make a Deal with an Author

o   The Internet

o   Utilize Computer Skills

o   Become a Self-Promoter

o   Out of Necessity Came a Vision

o   Start a Janitorial or House-Cleaning Service

o   Bookkeeping for Independent Businesspeople

o   Personal Expertise/Talent

•   The One Great Possibility

•   Call to Action

Chapter 4   Grandparents: The Golden Years

•   Again, the Ugly

•   Consequences

•   Grandparents, Be Aware!

Chapter 5   Students: College and Career Success

•   A Dose of the Truth

•   Learn Your Lessons

•   Call to Action

o   The Bottom Line

o   The How

o   The Right Dream

o   Stand Up

•   Student Loans as a Financial Tool

•   Get Serious about Financing Your Education

Chapter 6   Educators

•   Stepping Up to the Plate

•   Call to Action

Chapter 7   Bankers and Lenders Role

•   Charley’s Code of Conduct for Lenders

Chapter 8   Politicians

•   Teachable Moments

•   Call to Action

Afterword

About the Author

Preface

Before we begin, let’s define exactly what education is. The following definition is from Dictionary.com which I believe is a good operational definition for this book:

"Education is the act or process of acquiring general knowledge, developing powers of reasoning and judgment, as well as preparing one’s intellect and skills for mature life. An educated person is someone who perceives accurately, thinks clearly, and acts effectively on self-selected goals."

Based on this definition, it’s worth asking, before sending students out for a costly college education, will they graduate financially astute and smarter than when they entered as a freshman, or will they be burdened with student-loan debt, possibly for the rest of their lives, because of not having a foundation of financial literacy?

The following material addresses this question. It is fact-based and includes my own personal observations and viewpoints as a former administrator, business owner, parent, grandparent, and concerned citizen. As you will soon note, fluff, sweet talk, and glossing over the issues affecting your future graduate’s and my grandkids’ current and future financial well-being have been omitted.

The contents of this book may not be what parents, students, educators, lenders, or politicians want to hear or read regarding the lack of financial education in the home and school systems, leading to a proliferation of student loans that may haunt college graduates for the rest of their lives. If your ultimate goal is to provide a pathway for a debt-free college education followed by a middle-class-plus lifestyle and the American dream, you must understand what it takes to avoid the financial pitfalls. Keep this in mind: our thinking and doing determine outcomes and results in our lives. Is your current way of thinking and doing giving you the outcomes and results desired?

My goal is to provide an informative, in-depth look at the good, the bad, and the ugly of student loans and student debt. I will then help you to make smart choices in funding your student’s college education. The hope is that ten years from now, you will be able to look back and realize that your student made smart decisions and endured the sacrifices necessary to lead to the successful career and lifestyle hoped for without regrets or having to say, If only I had chosen differently.

After spending a great deal of time researching this issue, I’ve come to the conclusion that financial education has a low priority within our educational system and families. In addition, many of today’s parents sending their kids to college are enablers. They accept at face value the spin promoted by our federal government, along with financial and educational institutions, that the only way their little darlings can achieve the American dream is with a college degree.

Out of wishful thinking and political spinning, parents and students blindly believe that a college education guarantees a high-paying job. They are convinced that taking on student loans is a small price to pay. Then, in a state of euphoria, students pursue a degree that will not fulfill their expectations, convinced that whatever choice they make, the government will lead them across the River Jordan into the promised land. The wailing and O woe is me begins once they realize they have instead been led into an abyss of debt.

Then, pleading innocence, they contend that they had no idea institutions (federal, private, and public) were profiting off their gullibility, forcing indebted students and parents (if they cosigned the loans) to repay those debts without recourse. One must be cognizant and take responsibility for knowing what one has or has not agreed to; ignorance of the law is no excuse. The American dream of an upper middle class lifestyle and financial security in old age will fade away if we allow ourselves to be led astray by misleading information, false hopes, and unrealistic expectations.

Many students make college and career choices without any sort of in-depth planning. Why? Because parents and educators do not demand that they develop analytical thinking and financial skills, nor do they stress the importance of self-reliance. Perhaps it’s because they, too, lack these attributes, or the courage to demand students be financially competent and progress toward self-reliance by the time they get to college. If parents and students choose to avoid these details and blindly sign up for student loans, they may very well wind up in what I call educated poverty, their lifestyle and bank accounts filled only with regrets.

Introduction

This book is directed toward the middle class, whose members have chosen to carry a disproportionate share of the student-loan burden of debt. It may be useful to understand some of the background as to why this is happening, although the lessons discussed apply across the spectrum of those in all income classes who are considering sending their children to college.

This may come as a shock, but nowhere in the Declaration of Independence, Constitution, or Bill of Rights does it say that every student is entitled to a college education. What it does say is every American is entitled to life, liberty, and the pursuit of happiness. There are no guarantees, just the opportunity to pursue a higher-level education, if you so desire, with initiative, motivation, and willingness to achieve through your own efforts.

Were those not the qualities that built this country? That mentality is what will get your children a hands-on degree in self-reliance, skills to deal with life’s realities, and a high-paying career. If they don’t have these qualities, then perhaps a college education is not in their best interest.

The Statue of Liberty symbolizes hope, opportunity, and freedom to progress toward, and achieve, the American dream. Our country was founded on a set of ideals, including the belief that prosperity and success can be acquired through hard work, persistence, and making intelligent choices. Iowa businessman John T. Adams in 1931 defined the American dream this way: Life should be better, richer and fuller for everyone, with opportunity for each according to ability or achievement regardless of social class or circumstances of birth.

The idea of the American dream is rooted in the US Declaration of Independence, which proclaims that all men are created equal and that they are endowed by their Creator with certain inalienable rights, including life, liberty, and the pursuit of happiness. The American dream as it applies to college makes the attainment of higher education a possibility by providing opportunity for prosperity and success through hard work, diligence, and strength of purpose. Yet people seem to believe that achieving a degree should be easy, stress-free, and without cost.

A college education is not guaranteed, nor is it an entitlement. It must be earned. The path to the American dream begins with a healthy dose of brutal honesty coupled with the development of real-life skill sets, hard work, and persistence. Without that combination, no amount of dreaming in the world will take you far.

Let’s begin with a little test I came up with to get an idea of your values, degree of commitment, mind-set, and attitude on this issue of money, college, planning, and student loans.

Quiz Time

1. How serious are you about acquiring a debt-free college education for your children?

A) Somewhat serious

B) Very serious

2. Given the right coaching and tools, do you believe you could make significant financial progress in helping your children achieve a debt-free college education?

A) Yes

B) No

3. Do you believe it is okay to be debt-free, earn significant income, and have substantial savings and investment accounts?

A) Yes

B) No

4. How many hours per week are you willing to put into pursuing a debt-free college education for your child?

A) One hour

B) Two hours

C) Three hours

D) None of the above

5. How much money are you saving every month to assist your son or daughter in pursuing a debt-free college education? (Be honest.)

A) $0–100

B) $101–200

C) $201-plus

6. Do you give back to your community with your time, talents, and contributions?

A) Yes

B) No

7. Do you generally make good decisions based on sound information?

A) Yes

B) No

8. Are you the type of person who is willing to go the distance in the pursuit of long-term objectives?

A) Yes

B) No

9. Are you willing to take greater financial control of your life, knowing it is essential in obtaining a debt-free college education for your children?

A) Yes

B) No

The benefits and rewards of a college degree are available to all who are industrious, willing to sacrifice, and resolved in their tenacity to achieve a high-paying career or a better life. Those who grasp this approach most assuredly will succeed. However, according to Harvard University’s Institute of Politics, 65 percent of college graduates today think the American dream is dead—an interesting observation when you note that 70 percent of grads borrowed money to go to college.

The road to a diploma can be paved with hardships and disappointments for those not motivated, persistent, or self-reliant enough to earn their way based on their own efforts. If these individuals ignore strategic career and financial planning along with application of effort, then what in heaven’s name would make them think student loans will lead them to the promised land, the American dream?

Without specific self-reliant traits, they can expect a job paying an average or below-average wage, creating additional stress in their lives as they try paying back excessive loans borrowed to finance a pipe dream without