Going to college is a huge financial decision. A verse to keep in mind is Proverbs 22:7, which tells us, "The rich rule over the poor, and the borrower is the slave of the lender.” That should guide your decision process because it’s so easy to borrow and run up tens of thousands of dollars in debt that will take you decades to pay back.In his book, Art Rainer lists four ways to minimize debt. 4 WAYS TO MINIMIZE DEBT<ul><li>Start saving now</li><li>Take college level of AP courses now</li><li>Explore scholarships and grants</li><li>Be willing to work while in school</li></ul>We’re not saying those things will be easy, only that they’re easier than paying back $30k or $40k  in student loan debt. But Art has another list that can make this whole process a lot easier. MISCONCEPTIONS THAT COULD COST YOU A FORTUNEKnowing and avoiding these misconceptions could SAVE you a fortune. MISCONCEPTION 1:  Attending a costly school will get you a better job. Higher tuition does not always equate to higher salaries. Employers don't look at the amount you paid to get a college degree. They just look at your degree. MISCONCEPTION 2:  You need the whole “college experience.” They’re choosing to work to help offset tuition costs so they won’t still be paying on student loans 10 years after graduation. MISCONCEPTION 3:  It’s ok to stretch out college. Certainly, there is some leniency here, but be very careful when choosing to stretch your degree program. You may end up paying more, and you run a greater risk of not completing your degree. And don’t take throwaway classes. Make your investment worth it. MISCONCEPTION 4: You don’t need to know what you’re signing. Educate yourself on student loans. Before you sign any papers, understand the commitment involved, what it’ll take to pay off the loan, and what alternatives are available. MISCONCEPTION 5: Everything will take care of itself. Student loans are stubborn things. They even survive bankruptcy. We’re less concerned with the student who feels burdened by their loans than the one who feels no burden from their debt. Unless you manage to get through the obstacle course of a debt forgiveness program, which is not easy, your loans will have to be repaid … no matter what.  MISCONCEPTION 6: There’s no other option. Without question, the cost of higher education is a formidable challenge for many current and future college students. But this doesn’t mean there aren’t other options. Diligently pursue scholarships and grants. We like to say it’s better to put in the hard work now, saving, applying for scholarships, and working while you’re in school than to have to pay back student debt later at interest. On today’s program, Rob also answers listener questions: <ul><li>When might an index fund be a wise investment? </li><li>How do you determine the right diversification for your portfolio? </li><li>Why might progress in paying down the principle on a mortgage seem to move so slowly? </li><li>What’s the best way to set up college funds for grandchildren? </li></ul> RESOURCES MENTIONED:<ul><li><a href="https://www.faithfi.com/find">Find a Certified Kingdom Advisor</a>  </li></ul>Remember, you can call in to ask your questions most days at (800) 525-7000. Faith & Finance is also available on the <a href="https://www.moodyradio.org/programs/faith-and-finance/">Moody Radio Network</a> as well as <a href="https://afr.net/podcasts/faith-finance/">American Family Radio</a>. Visit our website at <a href="https://www.faithfi.com/">FaithFi.com</a>where you can join the FaithFi Community, <a href="https://faithfi.netviewshop.com/donate2">and give </a> as we expand our outreach.

FaithFi

Faith & Finance is a daily radio ministry hosted by Rob West. The program offers a practical, biblical and good-natured approach to managing your time, talents and resources.

Faith & Finance with Rob West

Student loan forgiveness is much in the news these days. It’s on. It’s off. It’s on again, maybe. What’s the lesson here?  The lesson is this: It’s much easier to avoid student loan debt than to get out of it. It just takes discipline. We’ll talk about that with Art Rainer today.

Art Rainer is a regular Faith and Finance contributor and the author of The Money Challenge for Teens: Prepare for College, Run from Debt and Live Generously

Avoiding Student Debt With Art Rainer

FaithFi: Faith & Finance | Aug 10, 2023

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Where Faith Meets Finance

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