April 2008

It’s no secret that it costs a lot of money to go to college these days. That’s why this blog exists in the first place. If you search for ways to get money for college on the Internet, most sites talk about scholarships, student loans, or jobs like babysitting, tutoring, etc. Most college students end up paying their way through college through some combination of these sources and/or a little help from the ‘rents. I know I did.

However, I have to admit that while I was able to pay my way through college this way, it was kind of boring. Everybody applies for scholarships and loans, and everybody works boring jobs just to pay the bills. There are more exciting and unusual ways to get money for college, and you’re only limited by your own creativity. Here are a couple of great examples of college students who came up with weird, creative ways to get money for college.

Grad Student Discos For Dollars

Photo by sierraromeo

A grad student at the School of the Art Institute of Chicago pays for his living expenses by disco dancing on the street.

Jason Hopkins didn’t know how to dance when he was the student body president at his high school. But when he was put in charge of promoting an upcoming school dance, he figured he’d have to learn quick. So he rented Saturday Night Fever and learned all of John Travolta’s moves. He had no idea that one day those moves would earn him around $10,000 a year and would help him through grad school.

Source

A few years ago, I actually saw this guy in person, discoing the weekend away on Michigan Avenue. His moves would often gather a pretty big crowd, but I had no idea he made so much money. Assuming he finished art school, he’s probably not there anymore, but this story is proof that we’re only limited by our own creativity.

Bottled Water Experiment

Photo by DerekNeuland

If you thought discoing for dollars was weird, then brace yourself for this next one. This example comes courtesy of a (now former) college student who wanted to prove that you could make money without little or no startup capital. How? In his own words:

Buy a 24-pack of bottled water and sell it on the side of the road. Possibly utilize the labor of pan-handlers.

Do you think it worked? Follow the link and maybe you’ll be inspired to try your own version of the bottled water experiment.

This roundup of the carnivals I participated in last week is almost a week late, but that’s because I was out of town defending my thesis over the weekend. Also, I must have submitted one article close to the deadline, because I managed to get it included in the Carnival of Debt Reduction two weeks in a row, and it was chosen as an editor’s choice both times!

• An Illustration of Why Saving Money Is Harder Than Spending Money was featured in both the Carnival of Debt Reduction #134 hosted by Real World Really and the Carnival of Debt Reduction #135 hosted by Credit Addict
• Tax Breaks for College Students and Recent Grads was featured in the Carnival of Personal Finance #147: Q1 Financial Advice Edition hosted by Money Ning

If there’s one thing I learned from college, it’s that no matter how carefully you try to plan everything, there’s always the unexpected. Even if you do finally reach your goal, the path to that goal usually takes a few surprising twists and turns along the way. My journey through grad school has definitely turned out that way.

When I started grad school, I was informed that most students take about 3 years to complete the program I was entering. I was more excited to learn that almost all the students were able to find jobs in related industries. Based on how smoothly I sailed through my undergrad years, I figured I would finish up in 3 years and probably get a job with one of the companies on my top 5 list.

But what fun would life be without a few hurdles?

Completing the coursework was a breeze, but the thesis has proven to be the biggest mountain I’ve had to climb. Throw in a bad breakup with my long-time girlfriend in the middle, and here I am, 4 years later, still finishing up the final requirements for my degree.

Despite the setbacks, I’m actually still on track to accomplish my goals. It’s just not quite in the time frame or the order I intended. I’m already working for one of the companies on my top 5 list, even though I haven’t finished my degree yet. However, I just successfully defended my thesis, so I should finally graduate later this year, a full 4 years after I started the program.

Financially, there have also been a few bumps along the way, but I’d like to share a recent bump in particular. I started a new job in January, which means that I moved away from school before finishing my degree. As a result, I only registered for a single credit hour this semester to stay enrolled in the program. While this minimized my tuition and fees, it also meant that I was no longer a full-time or half-time student. Unfortunately, you only qualify for in school deferment on student loans if you’re at least a half-time student.

Under normal circumstances, this situation would just mean that my six month grace period would have started this semester, because I no longer qualify for in school deferment. However, I consolidated my student loans while I was still in school (students can no longer do this). This allowed me to lock in a low 3% interest rate for all of my student loans, but it also meant that I gave up my six month grace period. This means that my student loan payments start immediately!

Needless to say, I was a little surprised to get a statement for a student loan payment last month. Fortunately, I started saving up to repay my student loans back in November (when I started this blog), so I was prepared for this unexpected event. In fact, I’ve officially knocked out $2850 of my student loans already even though I wasn’t expecting to start paying them back until later this year. As much as we try to plan things in life, even if we do eventually reach our goals, things almost never quite go as planned along the way. I just wanted to share my experience as a reminder to be prepared for the unexpected.

Well, it’s official. I successfully defended my thesis this past Friday, so in a few months, I’ll be the proud new owner of a $20,000 Master of Science degree. This means that I’ll no longer be a broke grad student, but a broke former grad student. Sweet.

Anyway, it feels great to make it over this final obstacle. Now all I have to do is finish up some revisions and corrections to my writeup, and I’ll be done for good.

“So what’s next?” you ask.

Well, I figure if I put as much effort into paying off my debt as I did into finishing up my thesis, then I can shoot for becoming a debt-free former grad student as soon as possible. The great thing about life is that as soon as one adventure ends, another begins.

This is a guest post from Tisha Kulak. Tisha Kulak is a writer for Creditorweb.com, where she writes about credit card offers, student credit cards and responsible credit card use.

Targeting teen and young adults, credit card offers start pouring in often before college and all too often before kids are even aware of how a credit card works. This can lead to a long future of financial struggle and a history of bad credit. There are several things every young adult need to learn before accepting responsibility for a credit card, even as an authorized user on a parent’s credit card.

1. Items Purchased on Credit Are Not Free – It may seem all too easy to walk into the convenience store, load up on hot dogs, soda, and some other late-night snacks and simply charge it to your credit card. However, that late-night junk food run will cost you big time in the future, especially if you are late or miss a payment entirely. If you can not pay for the items you want in cash, it means you can not afford it.
2. Credit Cards Should Be For Emergencies – Many college students and their parents opt to have a credit card account to use in emergency situations. Students often need books or other materials related to education. It is more responsible to utilize a card under those circumstances or other emergencies (ie: flat tire, emergency plane ticket) than it is to finance your spring break trip or off-campus concert on credit. Just because you have a card does not mean you have to use it.
3. Credit Cards Are Not All The Same – There are many credit cards on the market today and each one of them is a little bit different. Varying interest rates, repayment options, and fees could make a big difference. Signing up for just any card could cost you more than you anticipate. Make a well-informed decision by comparing several cards and understand what the fine print really means. Don’t open an account with anyone just because you got a cool t-shirt or free music downloads.
4. Cards Designed for Students – When doing your research about the various credit cards available, do not overlook the cards designed with college students in mind. Many offer advantageous benefits and rewards programs to those who fit into a college demographic. Make practical decisions based on your spending habits and what rewards would best benefit your situation.
5. You’ll Now Have A Credit Report – As soon as you open a credit card account, you will establish a credit report. The credit bureaus will update and add any account information to your credit report consistently but the information may not always be correct. Take the time to review your credit reports, know how it works, and what information it contains. Check it for accuracy at least once a year. A lot of weight is placed on your credit report and it will reveal how many accounts you have open and if you are making regular payments on time.
6. Account Numbers Must Be Secured – Identity theft is so prevalent these days and it can be all too easy for a stranger to have access to your credit cards. College campuses are notoriously busy, active places, full of people you may not know very well. This also includes the internet world. Unless you keep your account numbers and card information top secret, you will risk getting taken for a ride. As soon as you discover your card has been stolen, lost, or used fraudulently, report it to the credit card company immediately.
7. Credit Card Use Now Impacts Your Future – After college, if you anticipate buying a house, furthering your education, or getting a car, you best have an excellent credit report. You need to pay your bills on time, every month. It is also becoming more common for employers and landlords to do a credit check before getting a job or an apartment. Mismanaging your financial situation as a young adult can be detrimental to your future.