Skip to content

4 Huge Benefits of Graduating From College With No Debt

Colleges are ripping us all off. Tuition prices keep going up and our society keeps pushing kids into colleges around the world, because it is suddenly necessary for everyone to have a college degree. Personally, I think this is crap, especially since many of the jobs out there don’t really need someone that has been college educated. I know one young lady that wants to be a secretary. Instead of some quick on-the-job training, she is being pushed into a degree program that is going to cost her $50,000! Paying $50k for a $30,000/year job doesn’t make a whole lot of sense to me, but these are the new requirements of our day and age.

With college tuition costs on the rise, many students choose to just lay back and let their student loans take care of their costs. After all, there is a pretty slim chance that they could pay the tuition in full each year. But, what if there was a way? What if you could reduce your expenses and increase your income? Would it be worth it to try to get through college debt-free? Personally, I vote yes, and here’s why:

4 Benefits of Graduating From College With No Debt

If you can claw your way out of college with no debt, what can you look forward to after graduation? Here is a sneak peak of your promising future.

#1. No Student Loan Payments – Yes, I know, this is pretty obvious, but it is such a huge deal that I just had to mention it! Most students graduate and have required payments of $250-$500 each month, and these payments continue for 10 years! Ugh, how much would this suck? By graduating with no debt, you can avoid making these 120 payments. Sounds pretty freeing to me!

#2. Increased Cash Flow – No debt means more options. Most people don’t think about this fact because they have never experienced it. But, since I have become debt free, my life has been amazingly free of stress. I never have to look at my bank account, my bills are on direct deposit, and my savings just continues to grow. Beyond this, I now have a source of cash that I can invest to make my pot of money even bigger! You know the saying, “It takes money to make money”? I never liked it until I had money. Now it’s amazing!

#3. Invest Sooner – Those that graduate with college loans often don’t have the means to invest heavily in their retirement. They put off off their investment because they would rather put their money toward their student debt. Well, if you graduate without any loans, guess what? You can invest 10 years sooner than anyone else, which means big bucks for you in retirement (check out your blue line below):

investing chart

If you are without student loans, you can easily invest $200/month for 40 years. If, however, you have student loans, you might have to wait 10 years and then start investing $300 a month. You’d think that the $300 investment would eventually catch up to the $200/month investment, but guess what? It never does! Graduate debt-free, invest early, and retire a millionaire. It’s pretty simple. 🙂

#4. Find Your Dream Job – Many times, graduates receive that diploma and suddenly realize that their student loans will soon come for them. “Crap, I need to find a job, and fast!” – they think to themselves. They might find an okay job, but often times, it truly isn’t the one that they dreamed of. For the debt-free grad, earning an immediate income isn’t a necessity. Without those loans, there is no pressure and you can take your time and scope out your dream job. Plus, if you actually like your job, chances are that you will advance up the ranks faster than in a job you hate anyway, which will eventually net you even more money!

I am obviously a huge proponent of a debt-free degree. Sure it may be tough to make those tuition payments while in school, but if you do you likely won’t be sorry.

What do you think? Would you encourage someone to graduate without student loans?

Get Out of Debt Money


My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.


  1. No college debt really set me on the right path.
    In fact, I would love to get a graduate degree, but I am saving until I have the cash to pay for it.
    Community college + state school + P/T job = No student loans.

    • I had college debt, and it took me way longer to pay off than I thought it would. If I just worked a little harder in school, I could be much farther ahead today!

  2. I’m going for a psyd.
    Community college & international university are key money savers.

    • Whatever works!!

Comments are closed for this article!

Related posts