US Dept of Education: Median annual earnings of full-time year-round wage and salary workers ages 25–34, by educational attainment: 1995–2012

Student Loans Investing in yourself “Today, there are three kinds of people:  the have’s, the have-not’s, and the have-not-paid-for-what-they-have’s.” -Earl Wilson

Why Ms. Summerville is talking about this A counter-balance to how college, and its costs, are presented on this campus I benefited from student loans, not all have been as fortunate as me. You need to be smarter than the system at the start. Many of you are taking out loans, should be educated on how these loans work. Those who are not taking loans, still should care because it will affect your friends, perhaps the one you marry, and the economy as a whole

“Debt is the slavery of the free.” -Publilius Syrus Quotes “Debt is the slavery of the free.” -Publilius Syrus “Debt is like any other trap, easy enough to get into, but hard enough to get out of.” -Henry Wheeler Shaw “One of the greatest disservices you can do a man is to lend him money that he can’t pay back.” -Jesse Jones

The opportunity costs Push back marriage home ownership retirement savings children

Going to college on loans: calculated risk Pro Con Get an education Build your resume Not earning money Building debt

Student loans are not like other loans Can’t refinance at a lower rate (pay attention, Congress can change this) No tangible item to sell in order to pay off (just your labor) Bankruptcy won’t discharge this debt The government down the road will even take from your social security to pay that debt for you.

Some loans are better than others Federal Subsidized Loans (Stafford, Direct) Interest not accruing while in school Easy to consolidate these together Reduced rate for automatic payments Federal Unsubsidized Loans Interest accruing while in school (and capitalizing) PLUS loans Parent loans State/bank loans Not subject to same rules and you won’t have important protections

While in college Don’t assume all degrees are the same Network, do internships, you need more than degree Stay full time Don’t plan on using forgiveness programs Pay interest on unsubsidized loans: you will need to go out of your way to do this, but it is worth it. Don’t use more money than you need You will be offered more money than you need After first semester, you should have clear pic of your budget.

YOUR SENIOR YEAR of college Extra loan money Keep in savings (if subsidized). You can use this money to pay back loans when you graduate (no interest accrued and you don’t want to be broke when you are looking for a job) 10 year plan is optimal (there are others that may suit you better) Set up automatic payments (it reduces your interest rate ¼%) Can deduct interest on tax return (this will be very easy to do) Consolidate your loans (easy with federal) Pay attention to July 1st, when new rates are set – Department of Education current rates historical rates Deferment is better than forbearance, but both should be avoided

Your loans look too big, don’t panic: Pay interest as you go Apply to be an RA to save money If you come home in summer take ACC classes (that you are sure will transfer) Graduate! And do it on time or early! Network Part-time job: friends/connections structure your schedule get free food or useful benefit (like experience related to your field of study) Focus on using the college years to really develop skills and connections that will translate into a solid career (not just a time to party!)

Our perception of college A rite of passage  financial decision A caution about partying: Social media will make your mistakes permanent Wasting your brain and money – super vital in the future economy Dangerous Be deliberate in your networking