The #1 Tip for Lessening or Eliminating Student Debt

Often it seems that people take an all or nothing approach to postsecondary education. For example, prospective students typically feel they must complete their bachelor’s degree within a perfect four-year stretch, at the most expensive school possible because they perceive cost equals quality, and they are willing to borrow whatever amount is necessary to accomplish this goal. It’s no wonder the student loan debt in the United States has surpassed one trillion dollars!

Sadly, the best way to lessen the amount of student debt you may incur — or dare I say maybe even avoid it altogether — often goes underutilized. Although there are more ways to reduce the cost of going to college (e.g., see my post, “How to Wipe Out Student Debt Quickly,” 18 June 2012), the “career ladder” approach is the best.

What is Meant by a Career Ladder?

Basically this is connecting your education with your profession; you move forward with each at the same time. For example, high school juniors and seniors usually have the option of exploring trades or pursuing dual enrollment. This is a great first-rung because it allows students to begin working toward postsecondary learning and a career option as they complete their high school diploma. When done right, such a student could graduate with both a high school diploma and an associate’s degree (or another type of postsecondary certification) at the same time. So far, only a minimal amount has been spent; students even may be able to complete this without any cost at all.

This student then obtains an entry level position at a company utilizing his or her degree, but also begins on a bachelor’s. This may be done on a part or full-time basis. Either way, progress will be made and cost reduced because now he or she most likely has a higher salary after having completed the first degree than there would have been with only a high school diploma.

There may be other financial benefits, such as employer tuition reimbursement plans, automatic pay increases for additional educational attainment, increased opportunities for promotions, etc. Employees who pursue additional education and training demonstrate clearly to their employers that they are willing to learn and grow as professionals.

Once this student completes a bachelor’s degree, it may be advantageous to continue on to a graduate or professional level certification and/or additional trainings. There are some fields in which a master’s or doctoral degree can be advantageous (e.g., education and business). Consult with some resources like the Occupational Outlook Handbook or discuss with your employer to see how pursuing additional advanced education may benefit you.

Finally, explore other options to increase your earning potential and career options without going into debt. Employers are often looking to hire and promote those who have excellent communication (written, spoken, and virtual), technical, and leadership skills, for example. Fluency in a foreign language often holds additional value for employees, too. Consider stepping up additional rungs as you increase your knowledge in such areas, make connections to new professional opportunities, and advance both with minimal or no additional cost.

The main idea of the career ladder approach is that both education and career move forward one step at a time. You should not worry if a degree takes you a bit longer than its traditional label. If you complete a two-year degree in three, but you do so while working in your field and avoiding debt, you are wiser and more successful than those who take an all or nothing approach to postsecondary learning and debt.