Eliminating Student Debt: A Penny Saved is a Nickel Earned

I'm sure you've heard the wisdom "A penny saved is a penny earned". But with student loans, a penny saved is much more than a penny earned. A graduate with $25,000 in federal student loans who is enrolled in the standard 10-year repayment plan will pay nearly $35,000. I recently began my last semester of college and decided to write down a few "tricks of the trade" I've come across. Here are five ways to reduce your college IOU:

1) Start a SuccessFund.

SuccessFunding champions higher education, supports college students, and fights student debt through crowdfunding. The site allows students to crowdfund money for college tuition, freeing students from the burden of student loans. It's safe for both the student (called the SuccessFundee) and the supporter (SuccessFunder) because the funds are put in a 529 college savings plan. Visit SuccessFunding's website to create a profile and start raising money.

2) Become a Scholarship Bloodhound.

Did you get carpal tunnel writing scholarship essays your senior year of high school? Once you’ve become a vibrant college student often the last thing you want to do is revisit that process. However, spending a little time applying for scholarships can save you a lot of time repaying loans after you graduate. Are there scholarships offered by the department that houses your major? Do civic organizations in your hometown have scholarships open to current college students? Uncovering the answers to questions like these can lead to finding otherwise missed scholarship opportunities.


3) Get to Know Your Financial Aid Counselor and Know Them Well.

Are you on a first-name basis with your financial aid counselor? In any situation in life, it pays to know the gatekeeper. In the case of funding your college, the gatekeeper is your financial aid counselor. Getting to know your financial aid counselor is beneficial in several respects. When scholarships and other opportunities arise, it pays for you to be the first person they think of. Forming a good relationship with your financial aid counselor can also lead to a better understanding of both your college finances and the responsibilities tied to your financial aid.


4) Join a Forum.

I created a profile on College Confidential before I entered my senior year of high school and was quickly engrossed. Joining forums on college related matters is a great way to get advice and discover hidden opportunities. Forums like those on College Confidential are full of students, alumni, parents, school representatives, etc. who may have been in a situation similar to yours or know of ways to help you. I’ve learned that people on forums are passionate and tremendously helpful. Once you understand the ways of the forum, create a thread asking about opportunities at your school, in your field of study, or specific to your situation.


5) Start Paying the Interest While You’re in School.

While you’re in school, the government pays the interest on Direct Subsidized Loans, however Unsubsidized Federal Loans still accrue interest during this time. Get to know all the information about your loan servicer(s) by logging into your Federal Student Aid account. Contact the loan servicer(s) about paying the interest on your Unsubsidized loans. Budget for partial or full payments on the interest monthly so you’ll only be paying the capital once your loan payments start coming due.


by: Paige Witthar

Student Debt: Don't Stress Because Many People Face It (Tyler)

SF: Tell us about yourself:
TZ: I am a freshman at Texas State University pursuing a degree in Business Administration with a focus in Management. I was born in London, ON Canada but was raised in the great state of Texas. Growing up, I enjoy(ed) playing sports, being outdoors, hanging out with friends, and striving to make people happy. I am an avid golfer and played all through high school, earning All-State honors as a senior. Since I have been in college, I have worked part-time for a local insurance company and joined the World Ranked Intercollegiate Quidditch Team at Texas State. I plan on networking with more individuals about SuccessFunding as well as other business related organizations that well benefit me in the future.


SF: What is your biggest challenge in college?
TZ: My greatest challenge in college is keeping my mind off the mountain of debt in which I will incur after graduation. With student loan debt hanging over my head, I have struggled to keep my mind on the ultimate prize, and that’s making the most of every opportunity to benefit me in the future.

SF: Are you impacted by student loans & debt?
TZ: Absolutely. I think about student loans and debt on a daily basis. I always wonder, is it worth it? Is my education really worth all this debt that I will face come graduation? It takes a lot for a student like me in the financial position that I am in to not think about all the student debt. It scares me.

SF: What would you do if you didn’t have any student debt?
TZ: If I didn’t have any student debt, I would be much more at peace with where I am today. I wouldn’t be “daydreaming" in class about how much my interest has accrued in the past month for my loans.

SF: Who is your hero and why?
TZ: My mother and my sister. They have showed me through thick and thin what it takes to be successful. I have watched my mom sacrifice so much for my own good, and I can’t thank her enough. My sister showed me just recently what it takes to get through college, determination and the drive to accomplish her goals. She faced thousands upon thousands of dollars in student debt as I will, but through savings, application, and networking, she was able to land a stable job right out of college that will enable her to tackle her student debt with no stress.

SF: If you could change one thing about your education system, what would it be and why?TZ: Everything would be self-paced. It is hard to create an effective education system that makes students cram information into a semester class when their learning/attention span may be far off from that. I would like to see education systems move towards a Khan Academy platform.

SF: What would you suggest to students who are facing student debt?
TZ: Don’t stress. Many many many people have to face it. Also, check out SuccessFunding. They can help guide you to financial help just by networking with others.

Create Your SuccessFunding Profile in 5 Simple Steps

Ready to begin taming your student debt? Follow these 5 steps to create your SuccessFunding profile.


1a. All you need to get started is your name, a .edu email address, and password!

1b. Spruce up your profile and give people a face to put with your name by uploading a picture. Make it easier for your potential donors to find your profile—include your hometown or the location of your college.

Voila! You’ve finished Step 1. The profile creation wizard is now visible. You’ll notice that you’ve already completed the “Name” tab.

There is now a percent bar on the right side of the window: it shows your progress toward completing your profile. Additionally, our “fan plan” is now visible to you. The fan plan gives you a blueprint for a successful fundraiser.

2. Next, tell us about your collegiate passions. Give us a taste of your love for your school. What degree are you seeking and what is your major?

3. Decide on a reasonable goal for your SuccessFund. Remember, you can always surpass your SuccessFunding goal!

Why did you decide to create a SuccessFund? What effect will the funds have in your life? Give your potential donors a glimpse into your life and talk about your plans for the funds in your "SuccessFund Title" and "Short Blurb". Make your profile easier to find by creating a friendly profile URL.

4.Show your personality through your profile. Add pictures of you in action and create a video. A video will increase the likelihood of receiving gifts from potential donors.
Check out our tips on how to make a great profile video!

5.You're almost done! Write a note thanking your donors for their generosity and belief in you. This message will be automatically sent to anyone who donates to your SuccessFund. Additionally, you can upload a picture of your signature to give your note a personalized touch. Click "Submit for Approval". Once your profile has been approved, you can begin receiving donations!

You'll have 45 days to raise funds toward your goal. During that time period, you can edit your SuccessFund and add more information like your career and education history.Tell your friends and family and use social media to spread the word about your SuccessFund in order to get maximum exposure.

Have any questions or need guidance creating your profile? Contact us--we're happy to help!