Debt vs. Service: Advice to Future Borrowers

Throughout Debt vs. Service, we’ve looked at how student loan debt is affecting our nation’s educators, healthcare workers, and nonprofit staff. Though many are passionate about their work, student loan debt negatively affected every person I spoke to, most having shaped their lives around paying it off.

Fortunately, these public service workers shared their advice to future borrowers, which boiled down to this: minimize the amount of student loans you have to take out now to reduce how much debt you have to pay off later.

The number one piece of advice: go to community college

Nearly everyone I talked to told me the same thing: start your education at a community college.

“I wish people had emphasized that it's okay to go to community college and get all your basic credits out of the way to save money,” wrote one teacher. “Saving money at community college and going to a state school is the best/cheapest path forward in my opinion.”

Community colleges offer associates degrees and trade certificates that can be used to jumpstart a career or undergraduate degree program. They often have flexible learning options to cater to a diverse set of students with varying backgrounds, ages, and experiences.

“There’s no shame in going to community college,” said Katie, an elementary school teacher who started her education at a local community college. “Save your money while you can.”

Community college will save you big

Starting your education at a community college is a cost effective way to earn college credits early in your schooling. On average, annual tuition at community colleges come in under $4k, while tuition at four-year universities range from $11k to $41k.

Justine, a nonprofit development associate, told me, “I did a few classes at my local community college when I was in high school so I was able to go into a four-year university with a lot of college credits. That saved me a lot of money, which is helping the loan situation right now.”

Like the one Justine attended, many community colleges offer dual-enrollment programs. These programs allow high school students to take college classes and use the credits both toward their high school diplomas and an undergraduate degree.

Transferring credits to a four-year institution is easy

“I'm always telling young people that are starting to think about college, ‘If you can, do as much of your general education for cheap at a local community college and transfer!’” said Hana, a former music therapist. “You don't have to pay for general ed at a premium.”

Many community colleges have easy transfer systems with state universities so they’ll accept all general education credits (the classes everyone has to take regardless of degree program). When I transferred from a community college to a four-year institution, all my general education credits transferred with me so I could focus solely on classes for my major.

Going to a community college will not hurt your job prospects

“I highly recommend pursuing education within your financial means, because ultimately, it does not matter where you get your degree from,” wrote Tanti, who first earned her associates in public health from a community college before pursuing a degree in nursing from a state university.

Starting out at a prestigious university may sound good, but they often come with hefty annual tuition rates which means higher loan payments down the line. Erin, a physical therapist, wrote, “My advice is don't go to the best school possible... Go to the cheapest. Because we all get hired for the same salary. I make the same amount as someone who paid way less for school.”

Budget and save when you can

The second most common piece of advice public service workers gave me was to save as much as you can before, during, and after taking out student loans.

Consider postponing college to build savings

One idea on how to minimize loan debt is to postpone pursuing higher education to build savings. Kourtney, who is currently going back to college, said, “I think that if I was younger and I was just going into school or graduating, I would not have went to school right away. I probably would’ve worked and waited and tried to save some money before then.” By using savings to help pay for school, students can take out fewer loans, meaning less to pay back later.

If you’ll need a masters degree, look into five-year programs

A teacher I talked to recommended taking advantage of combined bachelors-masters programs if they’re available. “Teachers make more based on having more education and most teachers get their masters while they're teaching if they don't have it already. I knew that to set myself up in the best way possible, I should go to a school that had one of those five-year programs.”

Five-year programs are not just for teaching. Many universities offer various accelerated programs, which usually let students take graduate-level courses for undergraduate pricing - saving you time and money.

Adjust your lifestyle to cut costs

Saving while in school was brought up often amongst those I talked to. Justine told me, “Try to not use as much loan money as you can and support yourself in other ways if possible because the less you take out, the less you have to pay back. Working while you're in school helps, though it isn't possible for everybody.”

Adjusting your lifestyle to accommodate payments will help you keep costs low. “You gotta proportionalize your life to how much money you have coming in.” said Hana. Multiple people advised living below your means and budgeting.

“Start putting a little bit aside as you go through college,” Katie told me. “If you have the opportunity to say, ‘I could go out for pizza or I could put $5 in my savings account,’ save the money! If you have the opportunity to, go for it.”

Consider whether taking on loans is right for you

Perhaps the most crucial piece of advice was this: know what you’re getting into.

Hana, who left the public service sector in 2020, warned students to “think twice” about whether their degree will be worth the debt. She earned a degree in music therapy, which is difficult to transfer to other careers. Her advice? “Try to choose a degree that you can really leverage. Really think about, ‘Am I going to be able to pay this off?’ Be sure that you want to study this.”

Tanti, now a NICU nurse, was on track to complete her bachelor's degree debt-free through scholarships and grants when immigration issues put a pause on her education. Though she ended up having to take out loans, her advice is to look at all your options. “There are so many ways you can get a degree completely paid for. Seek out those opportunities.”

Weigh the pros and cons

Deciding whether or not to go to college is a huge life decision that shouldn’t be made lightly or on default. One person I spoke to told me, “You gotta sit down and weigh the pros and cons, break out the legal pad. You'll figure it out.”

“Consider your why,” said Elizabeth. “Make sure that college is actually the best step for you in your life and know your reasons behind pursuing a degree. If college is the right fit for you, look at your options for lenders. Be smart with your money and make sure that you are making the best choices for you.”

And if after weighing your options, you decide not to pursue college? “Know that you're capable of thinking of something else,” said Kourtney. “You can always pivot.”

Financially educate yourself

If you do choose to take out loans, make sure you’re thoroughly informed:

• Learn how interest works. Over time, the amount you owe will increase due to interest. Make sure you understand how student loan interest works and what it could mean for your future payments.
• Avoid “sketchy” loans and student credit cards. “Don't do that,” warned Kourtney. “If you want a credit card, look at credit unions in the area of the school or the area where you're from. Look for things that are going to be as low interest as possible and will actually help you build your credit instead of screwing it all up.”
• Read the fine print. “Really pay attention. Read all of the information because sometimes there's stuff in there that you don't realize until after the fact,” said Katie. She advised going to loan repayment classes if offered.
• Figure out how to refinance later on. “Consider refinancing for a better interest rate,” advised Elizabeth. “Through refinancing, I was able to save myself almost $40k in repayment due to interest.”

Remember that student loans are meant to help, not hurt

Though the conversation around student loans is often discouraging, remember what they’re intended for.

Kourtney said taking out loans allowed her to have less financial strain while pursuing her degrees, a tradeoff she’s willing to make. “I had to weigh what was going to be more important this semester: not owing money or conserving my energy by not working so hard and taking out some loans. For me, taking out loans is going to ultimately result in better grades. It's going to result in me being able to finish school faster.”

She attributes taking out loans to both getting her out of a toxic household soon after graduating from high school and allowing her to invest in herself as a person. Her advice? “Weigh your effort and overall investment. Decide whether or not these loans are going to help you achieve your goal faster.”

You don’t have to take on student debt alone

Elizabeth, a former educator, is still paying off student loans she took out a decade ago. She urges students to remember: “It's easy to get a student loan, it's not so easy to get rid of one.” Luckily, there are services available to student borrowers to help lighten the load. “I have never heard anyone say student loans are fun, but companies like Paidly make it more manageable.”

Paidly offers student loan assistance services like Friends Helping Friends, a personal fundraising platform for your student loan debt. It’s an easy way for loved ones to contribute toward your education at no cost to you.

And even if you choose to defer your loan payments, you don’t have to wait until you graduate to start paying them off - let others help lower your student debt while you’re still earning your degree. Paying off your loans before they start to accrue interest can make a huge dent in what you owe, setting you up for future financial freedom.

Friends Helping Friends

Download our info sheet or read our article for more information on Friends Helping Friends

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In the words of public service workers: you got this!

Choosing to pursue higher education is an exciting and sometimes uncertain endeavor. Know that furthering your education will open doors and opportunities, so though taking out loans and studying for years can seem daunting, the public service workers that helped inform this series ultimately felt it was worth it.

Careers in public service make our world better: smarter, healthier, safer, and more connected. Our communities need people like the educators, healthcare workers, and nonprofit staff I talked to over the last several weeks - and they need people like you, ready to make a difference.

So if after weighing the pros and cons you decide to follow your passion and pursue a degree, take advice from the people who’ve been there: financially educate yourself, save money where you can, let others help out, and, as Tanti told me, “Do not give up.”

Thank you to everyone who generously shared their experiences with me. Quotes were lightly edited for clarity and names of interviewees were included in this article with permission.