BOONE — If Steve Boedefeld graduates from Appalachian State University without any student loan debt, it will be because of the money he earned fighting in Iraq and Afghanistan and the money he now saves by eating what he grows or kills.
Zack Tolmie managed to escape New York University with no debt and a degree by landing a job at Bubbys, the brunch institution in TriBeCa, where he made $1,000 a week. And he had entered NYU with sophomore standing, thanks to Advanced Placement credits. All that hard work also yielded a $25,000 annual merit scholarship.
The two are part of a rare species on college campuses these days, as the nations collective student loan balance hits $1 trillion and continues to rise. While many students are trying to defray some of the costs, few can actually work their way through college in a normal amount of time without debt and little or no need-based financial aid unless they have an unusual combination of bravery, luck and discipline.
I literally never went out, Tolmie says. There just was not time to do that.
Plenty of influential people assume that teenagers can ask parents for loans if all else fails, as Mitt Romney suggested during the 2012 presidential campaign. Others recall working their way through college themselves, including Rep. Virginia Foxx, R-Banner Elk, who heads a House subcommittee on higher education and workforce training. I spent seven years getting my undergraduate degree and didnt borrow a dime of money, she once said at a subcommittee meeting, adding that she was bewildered, given her own experience, by tales of woe she had heard from people with $80,000 in debt.
But students nowadays who try to work their way through college without parental support or loans face a financial challenge of a different order than the one that Foxx, 69, confronted as a UNC-Chapel Hill undergraduate more than 40 years ago. Today, a bachelors degree from Appalachian State, the largest university in her district, can easily cost $80,000 for a state resident, including tuition, room, board and other costs. Back in her day, the total was about $550 a year. Even with inflation, that would translate to just more than $4,000 for each year it takes to earn a degree.
And the paychecks that Tolmie managed in the big city are only a dream in towns like Boone, where employers have their pick of thousands of Appalachian State undergraduates. Even the most industrious, like Kelsey Manuel, a junior who drives 10 miles each way to a job in a resort where she earns $10 to $11 an hour, often cannot work enough to finish college debt-free.
No one tracks how many students are trying to work their way through without parental assistance or debt, but plenty work long hours while also attending classes full time. As of 2010, some 17 percent of full-time undergraduates of traditional age worked 20 to 34 hours a week, according to the National Center for Education Statistics. About 6 percent worked 35 hours or more.
Students who work fewer than 30 hours a week (excluding federal work-study jobs) while in college were 1.4 times more likely to graduate within six years than students who spent more than 30 hours a week in a job, according to an article by Pilar Mendoza, an assistant professor of higher education administration at the University of Florida, in The Journal of Student Financial Aid last year. Their grades are likely to be better, too, since they have more time to study.
But working less has financial consequences. You have two choices, Mendoza says of students whose families could not or would not contribute to their college costs. You either work, or you acquire debt.
Steve Boedefelds solution was to earn much of the money he needed before he got to Appalachian State. A native of Ridgedale, Mo., he was a straight-A student in high school and an avid reader of military history, particularly Vietnam chronicles. I remember reading all of those books, he says. And I didnt want my grandson to look back and ask me why I didnt go when my country was at war. The financial benefits to enlisting with the elite Army Rangers were attractive, too.
My folks tried everything to keep me from joining the Army, he says. They told me that I could go to school wherever I wanted and that they would pay for it. But I was pretty much dead-set that I could do it on my own. Their parents didnt float their bill, so why should I be different?
Boedefeld enlisted in 2006 and finished his service in 2010, after three tours of duty in Iraq and one in Afghanistan, each lasting three to six months. The discipline that allowed him to endure Ranger training and survive combat has carried over to his financial life. As a soldier in a war zone away from his wife, Jennifer, he earned as much as $5,000 a month, much of it tax-free thanks to longstanding rules governing combat pay. They put away $10,000 to $15,000 annually. One of my friends calls me an economy killer, he said.
Investment in themselves
When Kelsey Manuel, 21, transferred from a community college near her home in Lexington, to Appalachian State, she worried about enrolling without a clear career goal. But she soon settled on a hospitality major, having worked as a waitress near her home. She made $16,000 in 2011.
Those earnings, however, kept her from being eligible for much federal financial aid, and she was only able to earn a little more than $12,000 in 2012 at a similar job at a hotel about 10 miles from campus. Her parents have not been able to help her pay for college, and she is now on pace to end up with at least $30,000 in student loan debt.
Esther Manogin, director of the office of student financial aid at Appalachian State, worries that students fail to place debt in context. You could not buy a new SUV, she says, for the average debt level of the universitys graduates, which is likely to be around $25,000 for this years freshmen who borrow and finish their degrees. I dont encourage them to take out loans if they dont need them. But if thats the only way they can get an education and realize their dream, then I think its an excellent investment in themselves.
According to the College Board, the average debt among all bachelors degree recipients from public universities was $13,600 for the 2010-11 school year. The average among all those who borrowed was $23,800, and many of them were probably getting at least some financial assistance from their parents. The average full-time undergraduate at a four-year public university during the 2012-13 school year is paying a net price of $12,110 for tuition, room, board and other fees after taking grant aid and tax credits into consideration, though not everyone who wants or needs to work to pay for college will qualify. Manuel worries that her long hours on the job may put her academic performance and future employment prospects in jeopardy.
Indeed, this is Manogins biggest fear about students like this. I just dont see how they cannot let their grades suffer, she says. Research says that for every hour of class, you need to allocate three hours of study.
She declined to comment on Foxxs nose-to-the-grindstone, debt-free exhortation. Probably anything I say about Virginia Foxx will get me fired, she says.
Manuel, though, didnt hesitate to note the long odds of earning enough while enrolled in college full time to avoid student loans. If I could make that kind of money, believe me, Id do it. A spokeswoman for Foxx declined an interview request.
Manuel says she does wish she had saved more money from previous jobs. But so far, she doesnt regret having enrolled at Appalachian State.
I know that in the end, Im probably going to be in a better situation, she says. Im going to know the value of a dollar. These are the things that you just need to learn to grow up.