Debt-Free Degree? Not if You're Me.

The hype surrounding Anthony Oneal's book "Debt Free Degree" has created a wave of student loan bashing amongst the members of the so-called hardcore Dave Ramsey Facebook groups. Their aversion to student loans is misguided, fueled by yet another financial celebrity with an agenda backed by Ramsey Solutions.

If you've never heard of Anthony Oneal, then you're probably not a fanatic Dave Ramsey follower. Oneal is one of the newer Ramsey Personalities. Like Ramsey does with all his protégés, he's groomed Oneal to be a servile spokesman and, in return, has promoted his book. The first part of Oneal's book is just a rehash of Ramsey's material that can be found on the Web, so it's nothing earth-shattering. In fact, it's downright annoying to buy/read a book only to find that much of the material is freely available elsewhere.

The real problem with Oneal's book is that he wraps his opinions up in a sad story and presents them as fact. He restricts information from his audience and cherry picks studies and statistics to "prove" his points, which stifles the decision-making process. Good decisions cannot be made with faulty, manipulated, or scant information. To be uneducated in this respect means Oneal is the one making the decisions in your household. Is that what you really want?

Parents have many choices and options in regards to helping their children with college or other higher education. The complexity of the financial situation is compounded by the parents' (in)ability to do what they want. Some parents may sincerely want to pay for their children's college, but just don't have the means. Whatever the situation, parents should not be judged for their decisions nor should they judge others for their decisions. In any case, parents should make informed decisions and not permit a financial celebrity to get inside their heads.

Anthony Oneal tries to limit the options parents/students have with his "never use credit" mantra. It's tiresome when Ramsey does it and tiresome when Oneal does it. Intellectuals understand that credit is sometimes necessary in the world outside the walls of Ramsey Headquarters just as power tools and running water are necessities in the modern world. While there is really no such thing as good credit, there is necessary credit. That credit, when used judiciously, can be used to one's advantage. College loans are the mortgage of the educational world. They allow students to obtain education now so that they don't miss opportunities.

I am not advocating going $200,000 into student loan debt for a degree in Underwater Basket Weaving. Nor am I advocating missing an opportunity for a STEM, medical, or any other degree that will give a good return on investment (ROI) for fear of using student loans.

My Story

I experienced a situation where I had to use student loans. I'm sure Oneal and Ramsey fanatics will critique and criticize my choices and tell me what I should have or could have done, but I'm not interested in what they have to say. Their ignorance is not as good as my knowledge. I made my choices, took care of my debts, and came out ahead, so their academic opinions and judgments are inconsequential.

My story is important to parents and students to show them that sometimes loans are necessary to achieve one's goals. You have to make your own choices guided by critical thinking, knowledge, and good judgment. Indiscriminate use of credit is always bad. You must have a plan for its use now (what you spend) and the future (how will you repay it).

On my high school graduation night, my father gave me an ultimatum,"Son, you're not going to be a bum," he said. "You're going to join the military, get a job, or go to school." I chose college and we agreed that he'd pay for it and I'd maintain a 3.0 GPA or higher.

After attending three semesters and maintaining the 3.0 GPA we'd agreed upon, I got hit with a tough dilemma: quit school or find a way to pay for it on my own. That's because my father, on a whim, decided he would no longer pay for it.

I had received some grants, but they weren't nearly enough to cover expenses. I found that the U.S. Army Reserve offered what's known as the G.I. Bill and a student loan repayment program--educational benefits for enlisting and remaining in service. I enlisted, went through the required training, and returned to school.

I enrolled into the Reserve Officer Training Corps (ROTC), which was a contractual obligation to finish the program within a certain timeframe, graduate, and then serve a requisite number of years as a commissioned officer, either in the Reserves or on Active Duty. At the time, I didn't realize that by accepting a commission I would lose the student loan repayment because my original enlistment contract would be terminated. (Always read the fine print!)

I moved out of my father's house into my own apartment, a large but necessary expense that further strained my budget. Reserve drill pay, ROTC stipends, and the G.I. Bill covered only some of my expenses. In order to fully cover everything, I worked several jobs and eventually took out student loans. I also used credit cards to purchase things like a computer and printer because my work schedule wasn't conducive to computer lab use. There are only so many hours a full-time student can work. I was pushing 30 to 40 hours a week and still barely scraping by.

I take issue with the philosophy of "just work your way toward a debt-free degree." I've experienced first-hand the difficulty in paying my own way through college. Once I signed the ROTC contract, I had no choice but to finish my degree on time. I had to do whatever it took to accomplish that, and that meant working my ass off, taking out student loans, and using credit cards.

Anthony Oneal and Dave Ramsey can preach all day about paying cash for college, but sometimes that's just not possible. I don't care what they say except for when they deceive others by providing information that limits their choices. My choices were based off my personal situation and goals. I won't have someone tell me what I should have or could have done. I'm not interested in their 20/20 hindsight. They weren't in my shoes.

So, be very careful about following financial celebrities down a dark path that can seriously affect your or your child's future by limiting options. Once you take their hands, they become the leaders and will take you where they want. You lose your voice when you blindly follow some guy on the back of a book cover because he's a best seller. And you may find that you can't reverse some decisions because many opportunities are fleeting. It's best to make the right decision first.