Changing the world, one breath at a time
Posts tagged student
No College Debt
Feb 24th
Below you will find an interview with Chris Coppenbarger. I found his story via StumbleUpon and asked him if I could interview him because his story was quite unique. As a student trying to get through college with as little student debt as possible, Chris’ story is quite an amazing one!! If you are interested in talking about your story, email me and I’ll send some interview questions your way 
Can you tell me a bit about yourself?
My name is Chris Coppenbarger. I grew up in various places around the South, ending up in a small town near Savannah, GA. We were always in church and I was raised that if you don’t have the money for something, either save up for it, or don’t buy it. I have B.A. in Cross-cultural studies from Toccoa Falls College, a Certificate in Information Technology from Clayton State University, and a M.A. in General Theological Studies from Columbia International University. I work full-time as a web developer. I am married with two children and one on the way.
On your blog, you mention getting through college debt free. How did you do it?
I went to a small 2-year school in my first year and received money from the state through their HOPE scholarship program funded by the Georgia Lottery. I also received federal Pell Grant money. I think there was some other small academic scholarship, but I don’t remember. In the end, I received enough money to even pay for books. A lot of states offer some kind of scholarship program funded by their lottery. I didn’t do well enough to keep my scholarships and came home for two years. During that time, my dad died. My mom took a job at Toccoa Falls College in Northeast Georgia, and we moved there. I have two sisters as well. I was able to get a discount for my mom working at the school, but I was also able to get a few random scholarships and worked. I also lived off-campus with my mom and sisters. That probably helped immensely. In the end, I never took out a loan. There were some early semesters, when I wasn’t sure that I was going to be able to pay for the whole thing, but it worked out. I worked hard, committed to not get in debt over college, and got my degree.
And, you made it through seminary with no debt. How in the world did you do that?
Going to seminary was a little different than going to college. It was three years later, my mom didn’t work for the school (so, no discounts there), and my work wouldn’t pay for school, as it wasn’t related to my work (I worked for Target catching shoplifters). I was also married and we had one child already. In the end, I took my time. I was in a one-year program, since I didn’t need the Bible classes, having a Bible degree already. I could only afford to take one or two classes a semester to begin with. The Winter and Summer programs are only one or two week courses. While at Seminary, I was able to get a job on campus. This helped immensely as the school would pay for 90% of my tuition now. Again, I was able to secure a scholarship here and there that also helped to pay for the rest and for books. As for books, they can get expensive, so I recommend Amazon.com for book searching. In the end, I took my time, working my way through school. It took my three years for a one-year program, but I was able to finish it, even finding out we were expecting our 2nd child near the end. Again, I had committed to no debt. The only debt I believe that we maintained was a vehicle. It was hard at times, trying to decide if I could afford even one class sometimes, since payment is due up front. But somehow, we always did it. In both cases, college and seminary, I recommend sitting down with financial aid and discussing what scholarships and grants are out there. There are VA benefits if one has been in the military. There are specialist scholarships if you’re in a particular program or study. Since I was in the Muslim Studies program, there was a special scholarship for that. There are scholarships out there that don’t have to be paid back, if one just looks for them. If one has to complete a program in 5 years, instead of 4, then so be it. One shouldn’t have to rush it. A lot of the college debt that people take out, they are still paying for it 20 years down the road, and they may not even be using their degree. I don’t recommend loans to anyone for that very reason, and the interest rates are extremely high once you graduate.
If you could do college or seminary over again, would you?
Sometimes I think I would, other times I know I wouldn’t. I wish I would’ve stayed on track with the Mechanical Engineering program I was in at one time, but other times, I know that God had other plans for me. I didn’t do well in my first year of college. That might be the only thing I would possibly do over, but then again, I have a wonderful family and would not want to do that over. I believe that everything has a purpose and that I had my experiences for a reason. Some people may have to take out loans to get through school, but others may not. I don’t recommend loans because it’ll take forever to pay off and the interest rates are exorbitant. Like I said earlier, there are random scholarships out there that nobody knows about. Look for them. I was in seminary and found scholarships. There’s not a whole lot for Graduate and Seminary, but they are out there. Thanks for the time to share my experiences.
Chris Coppenbarger is a Christian, a husband, a father and a web developer in Columbia, SC. He has a B.A. in Cross-cultural Studies from Toccoa Falls College, a Certificate in I.T. from Clayton State University, and a M.A. in General Theological Studies (emphasis in Muslim Studies) from Columbia International University. He serves in his local church on the Missions Team, as the leader of a Men’s Bible Study, and as a web developer. He also blogs at http://god-at-the-center.blogspot.com.
Student Credit Cards vs Secure Credit Cards
Feb 10th
The following is a guest post by CreditShout, a personal finance blog dedicated to educating people on how to manage their finances and save money with credit cards. You can follow Kevin on twitter: @kevinfleming . If you’d like to guest post, you can submit your information via this form: Guest Post
Turning eighteen, and often going away to college, are major steps on the pathway to the real world. Another, often overlooked major step on this path is beginning to build your credit. When you apply for a mortgage, a car loan, or even student loans, your credit score can have a big impact on whether you are extended a loan and how much that loan costs (i.e. what the interest rate is).
As soon as you turn eighteen and are legally an adult, you can begin the process of building a good credit score that will stay with you for life. However, many young people are uncertain as to the best way to go about establishing a strong credit history. Young people may also be unaware of how to choose between the two principle options available to them: secured credit cards and student credit cards.
Secured Credit Cards
Secured credit cards are a form of secured debt. This means that there is collateral guaranteeing you will pay back the debt. The collateral in this case comes in the form of cash, which you give to the lender to hold in an account.
Your credit line is usually extended up to the amount of security you provided. This means if you have a secured card with a $500 limit, you will have to put $500 into an account (which usually earns interest similar to that you would earn at a local savings bank). If you fail to pay your bills, the lender can seize the $500.00 to satisfy the outstanding debt.
Almost every secured credit card charges an application fee, and many charge an annual fee (although not all do). Shop around online, and at your local bank and credit union to compare fees and find one with the lowest charges. Most secured cards also have high interest rates on borrowed money, so shop around and compare this feature as well.
If you opt for a secured card, make sure that the lender reports to the three major credit bureaus: Equifax, Experian and TransUnion. These three bureaus are responsible for keeping the data on your credit history, and when lenders check your credit, they ask one (or more) of these companies for your credit report. If your secured card doesn’t report to the credit bureaus, the card will do nothing to help you begin building your credit since lenders will never know about it.
Many secured cards also convert to standard credit cards after a set period of time, as long as you are responsible with your bills. The standard length of time before a card converts is between 12 and 18 months. Make sure to find a card that offers this feature, if you opt to go this route.
Student Credit Cards
Unlike secured cards, student credit cards are unsecured debt. That means that there is no tangible asset guaranteeing the loan. You are extended a line of credit (based on your credit score, income and other related factors) and can use that line of credit however you see fit. If you have a $500 limit and charge $500 worth of pizza, the creditor would have no asset to seize if you didn’t pay your bills.
Student credit cards are very similar to standard credit cards issued to any adult. They are issued by many of the same banks or credit unions, and some offer similar features to standard cards, such as rewards point programs. Some, but not all, charge an application fee. The interest rate is usually higher than a standard card issued to an adult, however, but lower than the interest rate on a secured card. The credit line is also relatively low on most student credit cards, since most students do not have high incomes.
If you’re looking for a decent student credit card, I recommend looking into the Discover Student Card. This card is very similar to the Discover More Card, but has a higher interest rate because of the fact that it’s a student card.
Secured Cards Vs. Student Cards
There are both benefits and detriments to secured cards and student cards. For example, secured cards have a higher interest rate than most student credit cards. They also require you to tie up the money that you put into the account, where it earns a relatively low interest rate as compared with other investments. You cannot earn rewards points on secured cards as you can on some student cards, and most charge annual fees while many student cards do not.
A student card may also be a better option because it is more similar to a standard adult credit card. Secured cards are not usually meant to be kept for long periods of time, due to the fees associated with the card and other such factors. Student cards, on the other hand, could theoretically be kept open indefinitely as long as there is no annual fee. Since a part of your credit score is determined by the average age of your credit accounts, opening a student card and keeping it open throughout your life can make your credit-history longer and have a favorable impact on your score.
However, the major benefit to secured cards is that it is almost impossible to get in over your head in debt. Because your credit limit is restricted to money you have in the bank, you can’t run up huge credit card bills that could follow you beyond the college years. With a student card, it is entirely possible to get yourself into financial trouble by charging up to your credit limit when you don’t have the cash to pay. It may also be easier to qualify for a secured card than for a student card, since there is less risk to the lender.
Building Your Credit
Regardless of whether you choose a secured card or a student card, the key is to use these financial tools wisely to build your credit. Don’t ever carry a balance on either card, as you’ll end up paying interest at a high rate. Carrying a balance is not necessary to build credit, contrary to a popular myth.
Charge a small amount on the card each month and pay the balance in full. Over time, you’ll develop a record of on-time payments, which accounts for 35 percent of your FICO score. Keep your balance low, and refrain from applying for too many cards as a maxed out card and multiple inquiries (i.e. multiple new accounts) can hurt your credit.
By practicing these tips and using credit wisely, you’ll be on your way to creating a strong credit score which can make borrowing for the big stuff a breeze.
My Story
Jan 2nd
As I mentioned in my most recent blog post (Looking ahead), I mentioned that I will be switching the focus of my blog. I will be focusing on making it through college with as little debt as possible. Let me give you a little background on my history of college debt:
Growing up, I always thought about going to a private university that would give me an edge in the workforce. I started out wanting to become just like Dr. Carter from the NBC tv show, ER. Then, I wanted to become a youth pastor. Then I wanted to become a pastor. Finally, I decided on a business major. I figured that would give me a degree that would be useful in any situation that I would be in.
As I entered high school, I spent a few afternoon’s with both my pastor and youth pastor discussing college options and my interest in Grace College in Winona Lake, Indiana. With the stories that they told me, and the experiences that they had, I felt like Grace was the place for my face.
So I went and visited.
And I loved it.
So I applied in my junior year of high school.
And I was accepted through a part of their early enrollment period.
And I got invited to their Presidential Scholarship program to win some extra money for my education.
And I won $1,000.
Senior year went by with everything lining up as it should and I was all ready to head out to Winona Lake for four years of great education and fellowship with my fellow students and get ready to spend the rest of my life in a non-profit working to change the world.
I knew I was going to end up in debt.
I was okay with it.
I figured I was going to finish up with around $50,000 in debt. I was going to get a high-paying job right out of college and snowball that debt until it was down to about $10,000. Once it was down to $10,000, I would leave my high-paying job and go work for a non-profit. I thought that it was a great plan…
Until…
Momentum 2008.
Momentum is a conference held for the students of the Grace Brethren churches across the United States that features speakers who challenge us in many different areas.
One speaker, Francis Chan, challenged me in a way that I never imagined was coming.
He got up on stage and began to talk about a student that he knew that graduated from Seminary with over $120,000 of debt from undergrad and seminary. This student wanted to get into ministry right after he graduated, but he could not because of the amount of money he owed from the college loans.
That hit me.
Hard.
I want to change the world.
Can I do that with $50,000 in debt?
Do I want to wait for a few years after I graduate?
Or do I want to get started right away?
I spent a lot of time in the weeks after Momentum trying to decide how exactly I wanted to get through college with the least amount of debt possible.
I weighed the options.
Do I go to Grace for one year and then end up at a public university, say OSU or UC?
Do I spend all four years at OSU or UC?
I decided that I would spend one year at Grace and then move from there to either OSU or UC.
So I went and applied for a loan for one year at Grace. Just a little over $9000 after government loans, grants and scholarships from Grace.
We waited.
We got a letter letting us know that our first request was denied.
So we applied again.
And waited.
Waited.
It was the Thursday before I was to leave.
I started to freak out (and if you know me, I don’t do that too often).
What if my loan is denied again?
What do I do then?
So I looked around.
Do I apply to OSU and hope to get in there?
What about Franklin University?
OSU-Marion branch?
Columbus State Community College?
I looked at prices and saw that Columbus State would be by far the cheapest option.
So I had a back-up plan.
Friday, August 29th, 2008 comes around.
One day before I was to leave for Grace College.
I hear the mailman.
I’m anxious.
The letter in the mailbox determines my fate.
I rush out to the mailbox and find a letter addressed to my parents and me.
I opened it and was declined.
I instantly get online and apply to Columbus State.
A few days pass and I get my acceptance letter to Columbus State.
That was over 15 months ago.
I’m still at Columbus State paying just over $3000 for a full year of classes.
I made it through the past year paying fully in cash for my classes (thanks mom and dad for paying a quarter).
This year, with the uncertainty of my hours at work, I had to take out a loan for this year.
I’m already in the process of paying off that loan.
That leads me to where I am now.
A little over $2200 in debt.
My goal is to make it through college with under $10,000 in debt.
I hope that you join me as I continue in my quest of a degree for less than $10,000.