With it being an election year, the student loan debt crisis continues to be a hot-button issue in the news. Perhaps you’ve heard the shocking statistics that continue to get worse: 45 million Americans now owe over $1.64 trillion in student loan debt. Through my book and blogs I’ve been on a crusade to demonstrate to people that debt isn’t your only option to attend college. In fact, there are many ways to pay for school in order to graduate debt free. Katherine Hunt is a perfect example. She earned a bachelor’s degree from Georgia State University in 2014 before claiming a juris doctorate degree from the school’s College of Law in 2020. When Katherine yelled “I did it!” while walking across the stage, she was not only referring to earning her degrees but also accomplishing the feats debt free! How did she do it? Below is her story:
What is your view toward money? Did your parents (or anyone else) teach you about money when you were young?
I try to save as much as possible and avoid debt. I also spend a lot of money on things that matter to me (i.e. my fitness, gifts for others, and traveling) while I try to spend almost no money on things that do not matter to me (I get my hair cut at Great Clips). My parents consistently taught me to avoid debt when I was growing up, so it is almost second nature now. When I graduated college, I briefly worked in financial planning where I learned about investing so now that is important to me as well. My parents also taught me about good debt and some strategies for getting a good credit score. For instance, I opened a credit card account shortly after college and used it for small purchases just so I could pay it off every month. I also bought a car primarily with cash but financed a small portion so I could establish another payment history. Now I have a perfect credit score thanks to that advice.
How did you graduate college debt free?
I was lucky enough to receive the Hope scholarship which covered a majority of in-state tuition in Georgia. Therefore, I was only responsible for $1,000-2,000 worth of fees per semester. I worked full time during college, so I was able to cover the cost of fees and textbooks with my salary.
How did you get through law school debt free?
When I was accepted at Georgia State University College of Law, they offered me a merit scholarship of $4,000 per year. At the same time, I received a full scholarship from a private law school in another state. The guy that I was dating at the time encouraged me to reach out to Georgia State (since it was my number one choice and alma mater) and ask that they reconsider the scholarship offer because I received a better offer from another school. I did, and they offered me $4,000 for my first year with a full scholarship and $4,000/year stipend for the following three years in exchange for me being a graduate research assistant. So, my dad and I paid for the balance of my first-year tuition out of pocket and I was essentially paid to go to school after that. In addition, the graduate research requirement enabled me to be an assistant to one of the deans of the law school which was one of my favorite experiences in my entire education. She is now an esteemed close friend and an amazing reference and business connection.
What challenges did you face paying your way through school?
I worked full time through undergraduate education and law school, and it was exhausting at times. Oftentimes during law school, I felt stretched very thin between school, work, and my graduate research position and that was frustrating. However, my employer was very understanding of my class schedule and even let me take day classes during my third and fourth years of school. (I started as an evening student.) Ultimately, I graduated debt free with honors during a pandemic so it can be done!
Looking back, is there anything you would’ve done differently regarding how you handled and managed money during your college years?
No. I did not make a lot of money during college, but I believe I spent and saved what I had wisely. Occasionally I probably spent too much money on something unnecessary like a trip, a fancy dinner, or clothes that I did not need but I don’t regret that because sometimes you need to treat yourself! In my opinion, life is short and your budget should not make you miserable. Also, the lean years made me appreciate my current financial situation. Sometimes I find myself sitting in my dream car thinking how shocked my college self would be.
I graduated debt free with honors during a pandemic so it can be done!
Katherine Hunt
What are your thoughts on the student loan debt crisis?
I think it is very sad because a lot of people see debt as their only way to get a college education and that is certainly what they tell you at orientation. Part of my college orientation was a meeting with a school loan officer. They showed me three [student loan] options and asked if I wanted to circle one and start paperwork. Thankfully, my dad was there to stop me because I thought you had to choose one.
Share your thoughts on the notion that “Education is ‘good debt’ because you are investing in yourself.” Yet, people are leaving school (some not even graduating) with debt in the six figures.
I tend to disagree with this statement because education is probably not a good debt unless it results in an immediate six-figure salary. For some specialized professions (i.e. doctor, lawyer), debt is almost unavoidable. However, I think the best way to invest in yourself is by working and saving to pay for your desired level of education.
What advice would you give to students entering college regarding how to avoid student loan debt?
I always advise people to walk into financial aid and say, “I don’t want loans – what else can I do?” I think a lot of people think that you must choose a lame community college OR get a loan to go to the cool state universities or private schools. That is not the case! Every school has so many scholarship opportunities and resources beyond merit-based scholarships. If you start early, you can create your own plan to finance your education through scholarships and grants. I also recommend getting a part-time job whether you need it for school or not. In my experience, employers are very eager to hire college graduates who already have experience in the workforce especially if they gained this experience while excelling in school.
At the time of this writing, Katherine is a provisionally licensed attorney. Her bar exam was delayed due to the COVID-19 pandemic and she was scheduled to take it on Oct. 5. Good luck Katherine!
What’s Your Story?
If you have a debt-free degree story you’d like to share with the potential of it being a blog feature like this one, email me at jason@yourmarginmatters.com.