Debt-Free U: How I Paid for an Outstanding College Education Without Loans, Scholarships, Or Mooching Off My Parents

by Zac Bissonnette, Andrew Tobias (Foreword by)

This book can save you more than $100,000. These days, most people assume you need to pay a boatload of money for a quality college education. As a result, students and their parents are willing to go into years of debt and potentially sabotage their entire financial futures just to get a fancy name on their diploma. But Zac Bissonnette is walking proof that this assumption is not only false, but dangerous-a class con game designed to rip you off and doom your student to a post-graduation life of near poverty . From his unique double perspective-he's a personal finance expert (at Daily Finance) AND a current senior at the University of Massachusetts-Zac figured out how to get an outstanding education at a public college, without bankrupting his parents or taking on massive loans. Armed with his personal knowledge, the latest data, and smart analysis, Zac takes on the sacred cows of the higher education establishment. He reveals why a lot of the conventional wisdom about choosing and financing college is not only wrong but hazardous to you and your child's financial future. You'll discover, for instance, * Student loans are NOT a necessary evil. Ordinary middle class families can- and must-find ways to avoid them, even without scholarships. * College "rankings" are useless-designed to sell magazines and generate hype. If you trust one of the major guides when picking a college, you face a potential financial disaster. * The elite graduate programs accept lots of people with non-elite bachelors degrees. So do America's most selective employers. The name on a diploma ultimately won't help your child have a more successful career or earn more money. Zac can prove every one of those bold assertions - and more. No matter what your current financial situation, he has a simple message for "RELAX! Your kid will be able to get a champagne education on a beer budget!"

Genres: Nonfiction, Finance, College, Business, Self Help, Education, Money

306 pages, Kindle Edition

First published August 31, 2010

About the author

New York Times bestselling author Zac Bissonnette's most recent book is 2015’s The Great Beanie Baby Bubble: Mass Delusion and the Dark Side of Cute. He is an equity analyst at a hedge fund, and lives in New York City with his partner and a tuxedo cat named Perry Como.

Reviews

[Courtney Baron · Rating 2 out of 5]

I was excited for this book because it's written by a very recent college grad who was able to pay for school without loans, scholarships, and help from his parents. I was immediately disappointed, therefore, to see that the book was addressed to parents (um, what about those of us who, like the author, will not receive help from our parents?). Nevertheless, I continued to read and became increasingly annoyed. The book is not "unbiased", rather, it's written entirely based on his personal experiences with college which are not ordinary. Bissonnette is a natural entrepreneur who began his own business when he was just a child and continued to save for years to pay for school. He even bought two condos while in college (I was hoping he would go further into this but he did not). While I found his drive and ambition impressive, and I completely agree that one should avoid student loans as much as possible, I received no new information or tips on paying for college and therefore got nothing out of it.

[David · Rating 2 out of 5]

If you limit yourself to just one book on planning for college find something else. There are some practical ideas here but nothing I haven't seen before in much better books.

The author is simply too forceful, unctuous, obnoxious and hyperbolic for my taste. Plus he occasionally carts out tired conman retread Barry Minkow from three decades ago. Too bad Charles Ponzi is dead. I would have loved to have heard what he has to say too.

To the extent this book is any good it's said much better by Frank Palmisani (Right College, Right Price), Robin Mamlet (College Admission: From Application to Acceptance, Step by Step); The Princeton Review (The Best 380 Colleges) and Frank Bruni (Where You Go is not Who You'll Be).

[AJ · Rating 4 out of 5]

Any parent or student needs to read this before starting their college planning. Reading it even if already in college will benefit. The horrendous skyrocketing student debt enlavement in the U.S. is a national tragedy. Read this for an education in how to avoid it.

[Thomas Frank · Rating 5 out of 5]

This is THE book that every single parent needs to read well before they ship their kid off to college. If you're a prospective student (or current student), and you don't want to depend on your parents to make all your financial decisions, then you need to read this as well.

I was on a plane to Austin when I read most of this. The moment I stepped off, I called my brother and begged him not to take the $50k loan for audio engineering school he was going after.

I had previously known it was probably a bad idea, and had tried to convince him to seek other avenues for his goals, but had failed. After sharing some of this book with him, however, I succeeded. He's now working with an established recording studio for free. Oh, and he's not being crushed by a mountain of debt.

...read this book.

[Nat · Rating 3 out of 5]

Heres how he did it...

Zacs basic plan is to attend community college for two years and then transfer to a local state University that accepts all the credits. All the while, living with your parents, working part-time while in school and full time in the summers. The parents cut back a little bit (like a daily coffee or something) and pitch in a little too. You take the full load and don't switch majors to graduate in 4 years. That's it. That's how you graduate from college debt free without loans or scholarships.


The problem with his plan is he doesn't take into to account the experience. My sister took out ( a small amount of loans she mostly got scholarships) because she wanted to have the college experience. My parents offered the idea of her to attend community college then transfer but she turned down. She got some much out of her experience at college. She was able to grow up, join clubs, and learn things she wouldn't have by living with my parents.

Another thing he doesn't take into account is everyones situation. For starters, not every student (especially if they have a difficult major) can handle working 20 hours a week while taking 15 credits as the book suggests. Also, not every student's parents can are or willing to help. Also for certain majors or programs might not be offered at nearby schools. Or what if the student doesn't live within commuting distance of a college or university. And is it realistic to expect a student to never switch their switch major? And what if the CC courses don't transfer perfectly to their university? These are just some of the many scenarios where this plan Zac suggests might not work out. Good ideas, just not practical for every student like the book seems to suggest.


Honestly, this book is more of a book about why student loans are bad more than anything. Which I don't disagree with but I think there are other ways to graduate without debt than to follow Zacs plan.


UPDATE: After finishing my associate's degree at community college. I went to live on campus and have the "college experience." I can 100% say that living on campus and having the college experience is not the same as living with your parents. I was offered the opportunity to finish my degree debt-free or close to it if I did my degree online or commute to a local college. I chose neither and took the opportunity to live in dorms in a college in the state next door. This came with a SMALL amount of loans. Sooo worth it, I feel like I might even be better prepared for after graduation too with all the connections I'm making all the opportunities here. Yes, I will have debt, but I have made many smart financial decisions along the way and am already making a plan to pay it off as quickly as possible.

In my opinion education is an investment in ones future. Having a small amount of debt paired with strong financial guidance and skills. Like knowing how to budget and live below ones means go a long way.

[Janet · Rating 5 out of 5]

Although we're about five years away from beginning to pay for college (and have two kids graduating within 3 years of one another), we're committed to not taking out any student loans for higher education. I'm so glad we're reading this now so we can begin to prepare a back-up plan in the event our sons do not get academic scholarships. That said, while I felt that the book was strong on solid information and statistics, the author clearly has strong, polarizing views -- not a bad thing given his own personal experiences and sense of social justice, but I had to mentally adjust to the statistics and economics lessons (which he actually made enjoyable) in one paragraph and his diatribes about stereotypical drunken college antics (not his, but his fellow students) in others.

This was eye-opening:

It is far more profitable for the industry when students default on their debts than when they pay back their loans on time. This is because when a loan is defaulted, not only is the lender paid nearly the full balance of the loan (both principal and interest), but the guarantors of the loan the collection companies contract with -- which are often owned by the original lenders -- can still collect on the defaulted loan, the amount of which is now vastly inflated by fees and accrued interest."

He exposes student loans for what they truly are in financial terms: a non-dischargeable loan that carries with it the potential to become a huge financial obligation (first for the student, then for the parents if the student later defaults). Any potential gains from a child's loan-funded college education are lessened by looming loan payments upon graduation and subsequent entry into the workforce. At a time when they most need options and choices, college graduates with student loans to pay are making their choices based on how they're going to make loan payments. By the end of the first chapter, you'll be convinced not to ever consider a Parent Plus loan. Throughout the remainder of the book, you'll find several myth-busters to debunk the Ivy-league vs. state college bias.

The author is an engaging and convincing young man - I highly recommend this book for parents and eventually, their kids. Junior High isn't too early to begin strategizing! It truly is the author's firsthand experience as he's living out his own advice -- which is why I give him a lot of leverage for his occasional preachy tone.

[April · Rating 5 out of 5]

After waiting for 3 months for this book at the library, I loved this book so much I had to purchase it -- I have alredy started recommending it to my students. It was interesting to read a book that really rips my profession apart and also targets one of the places that I work. However, I pretty much agreed with the author's assessments of both. When reading about the poor advice school counselors can give to students, I found myself looking at things that I had definitely said before. It is changing how I counsel my students about paying for college and in rethinking how I plan for my own children. I really gained a greater knowledge of how financial aid works -- I was not up to speed before. This book is a must for parents who and trying to plan ahead for their children's future but don't want to go into debt in the process.

[Allison · Rating 3 out of 5]

I wish I had read this when my oldest was in the 6th grade. Then I would have had the time and opportunity to implement his ideas.

As it is, with one child already in college and another one to start in 10 months, it's not a whole of help to me now.

Good for Zac for his efforts. I'm not entirely sure they'd work for someone else. It's a good read, chock full of information, just not for someone launching a kid within the next year.

I didn't even finish it because I don't think there's enough in there for me. I'm better off looking for scholarships for my daughter.

[Courtney · Rating 2 out of 5]

Before you read this book, do at the very least know that it is addressed to parents. If you are a college student, or are soon to be, you may think that won't make a difference and thus simply replace all the "your child" with "you." However, that won't be helpful.

As a college student who is paying their way through school, this book is not helpful. You know everything he's going to say and the tips he offers are either too late to implement or simply unrealistic for most students. I agree with many of Bissonnette's thoughts, such that loans should be avoided at all costs and college students with any ambition should be expected to work a part-time job during college. However, some of his ideas such as investing in real estate and starting your own business while in school simply aren't realistic for a large majority of his student readers.

This book may be helpful to parents with children just starting high school or even younger. However, if your parents are unable to assist you with college expenses and you don't have a mind for entrepreneurship, this book offers little in advice for how to pay for college.

[Darrin Holst · Rating 4 out of 5]

Some good information that all students and parents of students attending college should read. Written by a kid actually putting himself through college. Explains how f'ed up the financial aid system is, how terrible student loans are (especially private ones), how working through college won't kill you and actually how it can improve your gpa by doing so.

The only thing I disagree with him about is he says that's okay to have 1 credit card for stuff like building your FICO score. A definite WTF moment. He tops it off by saying it's also okay to cosign for your kid's credit card as long is it's less than a $500 credit limit. Luckily he stuck that in at the end, otherwise I probably wouldn't have finished the book. He must of wrote this section after one of those college keggers.

[Tracy · Rating 4 out of 5]

I thought this was a really good resource for both parents and students who are getting ready for college. There was much good advice in the book and I really liked the fact that he stressed hard work and personal financial responsibility. He also advocates delayed gratification in some cases, a concept that seems to be growing less popular each year. He is correct in that the FAFSA process needs to be fixed and that community colleges are an underused asset in the quest for a college education. I would recommend this book to anyone with children who will be going to college or who are in college.

[Chris · Rating 2 out of 5]

An interesting and must read for parents sending their children to college. While I don't agree that everyone should attend community college to save money for many students community college is a very good option. I attended a 4-year college via Pell Grants, student loans, a work-study job, and summer jobs and I left 5-years of college with very little debt at the time.

The other thing to consider about this book is that your child or children don't need to attend an Ivy League School and will probably get a better education if they don't and leave school with less debt and you and they will be happier for it.

[Amy · Rating 4 out of 5]

Should be required reading for all parents sending kids off to college!!
It sure gives you some useful guidelines, in a time when College Student debt is already so high. Zac gives you some great pointers, to avoid your student getting out of college, and being so deep in debt. Also some great ways to make your student's college education affordable, if both the student, and parents make a few reasonable sacrifices~without student loans. Now I want my student to read it, so she can read for herself, how some things that are a waste of time during her college search.

[Liz · Rating 3 out of 5]

I'm super glad I didn't pay money on this. 

Switches between addressing parents and students. Early on Bissonnette criticizes directing the conversation to parents when he does just that. Many of the ideas are stretches and don't account for multiple children. Bissonnette is out of touch with practicality and gives an air of a scam artist. He even gives props to Rate My Professor and refers students and parents to this polarizing site. 

3 stars for effort and the occasional somewhat helpful information. 

[Chetan Meena · Rating 2 out of 5]

not at all good one only a few good chapters like Make money, Prepare for Career

[Briana Hanson · Rating 4 out of 5]

A book that tells you everything you have not been told about the conventional financial methods of investing in a college education: prestigious universities, burdensome-to-crushing student loans, and the myths of grants, FASFA, and scholarships. Author Zach debunks those myths with solid numbers from the first decade of the 2000s that still apply after the US recession of 2009. Debunking what we know is not the point of this book, however. Zac gives practical advice parents, teenagers and young adults can use to both make better college choices and be financially able to pay for them without going into large debt, if any at all. Setting aside video games to work part-time while getting an undergrad, investing in real estate rented to college attendees, and assuring the common person that community colleges and public universities are nothing to be stigmatized or worried about.

I would add that this book is aimed primarily at parents and their children versus young adults already out there on their own. I fall into that boat myself. Even with some promised financial help from mom and dad, I will be paying for college largely on my own. And—believe it or not—I want to. Few people are interested in stocks and investments in high school like Zac was. His background told in the book is a tell tale sign that he was financially well off for college by his own work. I was not like that; and high school plus another four years has already passed me. Zac’s book, while not targeted to the lone adult like myself, still had insightful information and ideas. I live in what is essentially a student home. Why not invest in a home myself to make some extra cash and an alternate place to live? (This is an example)

“Debt Free U” by Zac Bissonnette is a smart read for anyone who desires a higher education. Zac’s recommended reading at the end of the book is an excellent and short list resource that expands what you can learn from the topic of going to college as financially and personally prepared as possible.

[Rim Renee · Rating 4 out of 5]

Funny, honest, and full of rarely discussed money-saving strategies, Debt-Free U should be on the TBR (To Be Read) list of every high school freshman and their parents.

The first half of the book is more geared towards the parent, with a lot of information regarding the FAFSA, college costs, and how to adjust one's budget for the college investment. The second half examines a wide range of topics that appeals to students, from what to avoid during college tours all the way up to how to properly choose a college.

The only main annoying thing in this book is that the author switches between addressing the parent and the student, sometimes mid-chapter. I wouldn't have a problem with it if it was a chapter-specific thing. Also, in the final chapter, the author mentions how investing in college-town property is another great way to make money. However, only one chapter was dedicated to this topic when I think that the author (in keeping with his thorough writing) should have added at least two more to this topic.

Overall, though, this book was pretty well-written and address topics seldom discussed (or even mentioned) elsewhere. Great for both parents and students.

[Drew F. · Rating 4 out of 5]

This book by Zac Bissonnette is filled with practical wisdom. He provides several arguments for attending a large, public university rather than a small, private college. Most of the benefits are financial in nature, but he also touches on other positive characteristics of public universities that go beyond the monetary savings. What makes his advice believable is the fact that he lived out his own suggestions. Through hard work, a savings plan, and some ingenuity, Bissonnette was able to gain the college education he desired at an affordable rate without miring himself in debt. With my own daughter heading off to college in a little over two years, this book has been a gem of a read; I have truly been inspired to look at my family's own spending habits and figure out ways to cut costs in preparation for paying for college. My wife and I have been saving money for this very purpose since before our older daughter was born, but there are definitely some other ways we can manage to save even more!

[Melanie · Rating 3 out of 5]

Some good advice, but repetitive. Although I feel the amount of money needed is out of date, even for a community college. College costs have gone up, but wages haven't tracked the same. One more thought - it says without mooching off my parents - but he suggests parents get a second job to help pay....

[Holly · Rating 3 out of 5]

The gist of this book? Don’t take out student loans, even if it means you and both of your parents have to take second jobs to pay for college out of pocket.

More practically, the author suggests the following:
1. Go to an in state public school
2. Live off campus if you can
3. Be frugal
4. Work (evenings, weekends) to pay your way through college

[Melissa · Rating 4 out of 5]

Thanks to my husband’s personal finance expertise a lot of this information was already something I had heard before. That being said, it was a good reminder about ways to keep yourselves and children from going into debt while in college.

[Amy Ludlam · Rating 2 out of 5]

Some interesting thoughts about college and degrees. Most of this is common sense, which isn't always common.

[Julene · Rating 4 out of 5]

Not completely updated but a good read to get me thinking outside the box where college for the kids is concerned.

[Diana of Shelved by Strand · Rating 3 out of 5]

A little dated, but overall some good advice re picking the cheapest college option and avoiding student loan debt.

[Eric · Rating 4 out of 5]

A recommend

[Margaret · Rating 5 out of 5]

This is an excellent book for anyone who is wondering how the heck they can make college affordable for their kids. Each person's experience will be different, but I've used many of these suggestions and talking points with my two kids and can testify this works. My oldest is set to graduate college completely debt-free, and he did it without us tapping our savings. My younger son is on track to do the same.

[Chandni · Rating 3 out of 5]

Good at showing how bad student loans can get. I liked the community college representation too.
With inflation and costlier tuition, I doubt that working part-time alone with a full load can erase college debt.
He briefly mentioned networking, but a little more detail would have been nicer (job placement center on campus, internship etc.) with the rising competition.

[Adriana]

Important advice to hear as a high school senior deciding between a prestigious but expensive school and state schools. Bissonnette has pushed me to heavily favor the state school option. What he has to say makes a lot of sense.

[David · Rating 5 out of 5]

Loved this one. I have a kid in college and another starting this fall. His major advice was like this:
1. Never, never, never borrow money to send your child to college and don't take money from your retirement fund. And he shouldn't borrow either except maybe a little in the last year or two. He debunks the idea that school loans will pay for themselves today like maybe they did in the past.
2. Go to a state school, an inexpensive one. he debunks the common wisdom that going to a big name prestigious school will pay for itself. Community colleges are good starts.
3. His major premise is that you can find good professors at any school and lousy ones at any school. How well you do in school and after is much more a factor of how dedicated you are and how hard you work than it is of where you go to school. And big college loan debts can kill dreams much quicker than going to a cheaper college.
I recommend this one to anyone in college, planning to go to college, or with children who are.