Skip to main content

Debt Reduction Strategies: College Options & Alternatives

 
Strategies to Reduce or Avoid Student Loan Debt for College & Career Training
 
  • Iowa has drastically improved to be one of the lowest per student debt states in U.S. (map graphic)
 
529 Plan Provide Tax Free Savings for College (Primarily Parent or Grandparent Driven) to reduce loan payments after college
  • 529 Plans recommended by AffordableColleges.com, "College Savings Plan"; Like a Roth IRA, you earn tax free growth and avoid withdraw fees to pay for college. Different than Roth IRA, the 529 allows for multiple people to contribute any amount, while Roth IRA has annual limit of about $6,000. (2022 article comparing Roth IRA and the 529 College Savings Plan)
  • 529 Credit Cards (2018 savingforcollege.com article) - save for college when purchasing with a specialized credit card linked to your 529 account & (www.usnews.com article, April 2015) - describes credit cards that contribute to 529 College Savings Plans
 
2) Maximize Student ACT Scores & Grade Point Average to Increase MERIT AID from colleges so you can Lower Cost of College (Student & Family Driven)
 
3) Reduce the number of college courses you will need to pay to take for your college degree 
 3a) Take advantage of Iowa concurrent enrollment law that directs college to provide free text books and HS schools to pay tuition at reduced prices so students can take college courses free while completing high school.
  • Since 2010: 70-90% of Panorama graduates each year take free college courses, primarily through DMACC. Most popular are liberal arts web-blended courses with students using DMACC Blackboard learning system and meeting 2-3's weekly with professor in a zoom-like class session. College courses delivered by Panorama HS staff and Online independent courses using DMACC's Blackboard learning system are also common.
3b) CLEP out of introductory college courses before starting college 
CLEP is a test product made by the College Board company and used by most colleges for the purpose of granting college course credit by testing instead of the regular course delivery and tuition. Consider the typical cost of CLEP is $100-$133, versus paying for tuition & text books at a community college course for $500, or state university for $1,000, or a private college for $2,100
  1. Speak with your college academic adviser (typically during college orientation in Term 4, senior year of HS) about which CLEP tests you may take.
    1. DMACC accepts up to 30 credits of courses through CLEP testing.
  2. Register online at clep.collegeboard.org to select CLEP test(s) you want to take and test center you will use to complete the tests (College Board has a fee payable online = $89 + fees is much cheaper than average 3 credit college course cost of $16,77 in 2020)
4) Don’t Take On More Educational Debt Than You Likely Earn in Year 1 of Planned Occupation (Student Driven)
5) Know Which Occupations Have Companies' or State Government's Assistance to Help Pay For or Help Pay Off  College Debts (Student Driven)
 
6) DO NOT GO TO A 4 YEAR COLLEGE OR UNIVERSITY!
IF you do not want to become a doctor, lawyer, k-12 teacher, etc. (professions that require a bachelor or more in a graduate degree), THEN consider career training at a community college, apprenticeship provider, or our U.S. military instead of a traditional 4 year college/university.
  • ABC 20/20 - College is a rip off , 7:25 minutes with John Stossel, points to data suggesting a 4 year college degree is NOT a guarantee for a successful career.  Community college skill training programs are noted as safer investments.
Free Training: Take advantage of professional "skills gap" that exists in our state and nation, by becoming skilled in vocational arts, to take higher paying jobs that require less education, or starting your own service business.
  1. Popularized by Mike Rowe, host of Dirty Jobs tv show, through the mikeroweWORKS Foundation  (scholarship opportunities created with vocational colleges)
    1. FOX The Independents interview with Mike Rowe talks about college choices
    2. Rowe testimony to U.S. Senate; Commerce, Science, Technology committee (SenatorRockefeller) 
    4. DMACC's Workforce Training Academy provides free college coursework in business, information technology, advanced manufacturing, healthcare, & Commercial Drivers License (CDL). See brochure below shared by Iowa Workforce Development presentation at Panorama HS.
6a) APPRENTICESHIP; Employment & Training Instead of Paying a College (Student & Family Driven)
State of Iowa is giving money to Master Craftsman to train and pay student apprentices AND pay for apprentices' classroom training - our area contact for information on these programs is Amber Casebeer of IowaWorks, 619 N Carroll Street, Carroll, IA 51401, ph: 712-792-2685 ext. 28, email: [email protected]  [IowaWorks presents job trend data, their services, & facilitates PHS delivery of National Career Readiness Certificate exams annually to grades 11 & 12 - parents welcome to attend as announced.]
Several Companies have shared info with PHS seeking applicants and professional organizations - 
6b) Enlist in U.S. Military – highly skilled career training combined with salary and service to our country as an enlisted soldier.
  • Enlist in Army, Navy, Air Force, Marines, Coast Guard (2 to 6 year commitment)
  • Enlist for part-time service branch with guard or reserves
  • While a soldier you also have options to take free college courses or attend college with financial assistance
 
6c) Attend an Iowa Job Corps campus in Denison or Ottumwa (Family Driven) 
    • Denison's campus is renovated private college campus
    • Ottumwa''s campus is across road form Indian Hills Community College campus
      • Partnership with Indian Hills CC provides free associate degree, with living quarters next to Ottumwa campus.
      • Must provide income verification to qualify for Job Corps & participant cannot be counted as dependent on taxes while at Job Corps
      • Age qualification is 16-22
      • If a parent, children may live at Job Corps with you
    • Both Denison & Ottumwa locations provide free room, board(food), career training, and assistance with getting first job.
6d)Tuition Assistance Programs
 
7) WHILE SHOPPING FOR A 4-YEAR COLLEGE OR UNIVERSITY DEGREE, consider...  
7a) NEW TO THE WORLD! The UNIVERSITY OF THE PEOPLE provides FREE BACHELOR'S DEGREE using online tools and volunteers. This university opened in 2009 and earned accreditation before first graduates earned diplomas in 2014. They only deliver degrees known to secure significant salaries offering certificate programs to graduate degrees! https://www.uopeople.edu/
 
7b) Attend A College That Eliminates Their Graduates' Tuition Debt (Student Driven)
7c) Military Service Providing Money for College to Veterans, future military personnel, active duty personnel, or those related veterans or active duty personnel - https://studentaid.gov/help-center/answers/article/what-financial-aid-is-available-for-military-service
    • Air Force (Colorado Springs, CO)
    • Military (West Point, NY)
    • Navy (Annapolis, MD)
    • Coast Guard (New London , CT)
    • Merchant Marine (Kings Point, NY)
Become a U.S. military officer while earning your college degree in Reserve Officer Training Corps programs, available for each branch of military in colleges and universities in every state
    • Go to participating universities to earn BA for free or reduced price through ROTC (Reserve Officer Training Corps) scholarships.
    • Only way to become an officer in our armed forces is to earn a college Bachelor's Degree
 
 
7d) LIVE AT HOME & Attend Local Community College; SAVE $20,000 for first 2 Years (liberal arts) of a Bachelor’s Degree (Family Driven).  At same time, get a minimum wage job at 20-30 hrs per week and cover your college costs = no debt!
  1. Compare total 2022-23 expected costs of attendance of DMACC"s Student Expense Budgets ($16,048) and Iowa State Universities' Undergraduates Expenditures ($23,472)
7e) Pay for Lower Cost Summer Community College Courses for Transfer to your More Expensive Bachelor's Degree (Family Driven)
  • Take lower cost community college courses during the summer and transfer to the more expensive 4 year college/university of your choosing to save money. 
  • Iowa Regent Universities apply up to 16 credits of credits, liberal arts or vocational courses, towards most of their degrees (engineering majors are exception).
  • Community college courses are cheaper. Typical college course is 3 credits, so consider typical cost of just 1 credit -
    • 1 credit at most Iowa community colleges is $140
    • 1 credit at most Iowa universities is $350
    • 1 credit at most Iowa private colleges is $600 (or more)
  • Shop for community college courses online (DMACC Course Search Link).
  • See how DMACC course’s will transfer to bachelor degree: Example - ISU Transfer Credit (ISU equivalency guide
  • Many students take college courses free during HS academic year, but Iowa HS’s cannot pay for summer college courses.
7f) Consider cheaper basic college dorm room...
Instead of a college owned "suite" or private apartment, live in less costly dorm room.
Basic "old school" dorm living is easy, fewer bills and less planning associated than associated with management of off-campus apartments.
  • Compare the University of Iowa dormitory fees (for tripled rooming of $7,354 in Catlett Residence Hall, versus a single at Burge or Hillcrest Resident Hall of $12,573  in 2022-23)
 
8) Get Paid To Go To College;
8a) Companies team with community colleges to offer more than a scholarship and degree -
  1. Iowa Western Community College' Design Technology Program at their Cass County Center in Atlantic, Iowa - IWCC representative recently shared with PHS guidance office their partnerships with manufacturing that educate students for technology related skills.  IWCC Technology Program Webpage has a nice 2min video to watch. This uniquely cost effective program is 2 days per week/2 year program is delivered in Atlantic, Iowa with starting salary $40-45K...HS kids who like drawing and CAD but who do not want to attend 4 year college may most enjoy this program.  Program accepts both students who have been successful in Algebra 2 and those who have not (simply take different introductory courses once in program). A paid internship is part of year 2, so that year is actually 5 days per week. They could live at home year 1 and work part or full time jobs to keep them in the black, or live on the Council Bluffs IWCC campus with free transportation from college to Atlantic (Atlantic is about 1 hour drive from PHS).
    [Here is another partnership highlight ACIETA Company - WITCC partnership video about programming robotics, providing quality training, recruiting local people for Council Bluffs area living, different program that Design Technology, but worth considering too!]
  2. DMACC Partnership Programs industry/businesses – https://www.dmacc.edu/transfer/Pages/partnershipprograms.aspx#asep
    • Most of the Industry and Business Partnerships encourage student earning money while learning in their program - so costs stay lower and experience is gained, also the partnering business typically offer full employment (with benefits) upon graduation. See links to these business partnerships in given web address - Accumold Tool & Die, ASEP/General Motors Dealers, ASSET/Ford & Lincoln/Mercury Dealers, CAP/Chrysler Dealers, Catepillar/Ziegler, & Machinist Apprenticeship). These programs also highlight scholarships and some pay for all the courses. 
    Accumold - DMACC Scholar (FAQ #4) – 2017 Letter to guidance office explaining benefits along with flyer promoting program shares: Accumold, a precision mold-building company in Ankeny, Iowa has elected to provide at least four scholarships each year to DMACC students enrolled in eligible programs. Students who meet the requirements of the Accumold Scholars program, can receive tuition assistance to cover MOST of their tuition OR tools.  This scholarship would be in conjunction with a job at Accumold with the anticipation of full-time employment after graduation from DMACC. For more details - http://accumoldscholars.com/scholarship-programs/  
  3. John Deere VanWall Scholarship Pays for Tuition and more $ for recipients too - http://vanwall.com/john-deere-tech/
    1. NICC (Calmar, IA) - see flyer descrbing that in addition to full scholarship, students given paid internship, and employment as JD technology repair and install (about a 4 hour drive)
    2. John Deere Horizon - Southeast Community College (Milford, NE); In addition to full scholarship and employment, students given bonus money for good grades (about a 3 hour drive)