Are student loans a helpful resource—or a financial danger?

Led by Counselor Liz, a seasoned guide who went from community college to a master’s degree, this discussion offers honest, practical advice for students and families trying to make the smartest decisions possible. Whether you’re just starting your college journey or preparing to transfer, this blog will help you better understand your financial aid options—and when student loans might (or might not) be the right choice.

Understanding Financial Aid at Community College

When you first enter college, you're introduced to a range of financial aid options. These include:

-Fee Waivers: Programs like the California College Promise Grant cover your enrollment fees.

-Grants: Need-based aid like the Pell Grant or Cal Grant that you don’t need to repay.

-Scholarships: Money awarded based on merit, need, or personal background, also non-repayable.

-Student Loans: Borrowed money that must be paid back with interest after you graduate or leave school.

Counselor Liz emphasizes that students should always prioritize free money first—fee waivers, grants, and scholarships—before considering student loans.

“That’s free money. Loans are different. You actually have to pay them back—with interest.”

Before You Borrow: Assess Your Situation

Loans can be tempting, especially when upfront college costs seem overwhelming. But it’s essential to step back and ask:

-Am I currently working?

-Can I budget my earnings to cover costs not handled by grants or scholarships?

-Have I applied for every available scholarship?

-Can I set aside money from each paycheck to help cover expenses?

Creating a personal budget can go a long way toward reducing your need for loans. Liz encourages students to think of loans as a last resort, especially while attending a community college—where tuition is typically more affordable and there are often more support systems in place, like living at home.

Future Planning: The Long-Term Impact of Loans

One of Liz’s strongest arguments comes from a future-focused lens:

“Your future self will thank you if you can avoid having to pay that money back and being in debt in the future.”

Student loans can significantly impact future financial milestones such as:

-Buying a car

-Purchasing a home

-Starting a family

-Saving for graduate school or professional certification

Avoiding or minimizing debt during community college can ease your path later on—when university costs may be unavoidable. If loans are necessary, Liz advises saving them for your transfer to university, where tuition and living expenses may spike.

A Personal Story: How One Student Kept Debt Low

Counselor Liz shares her own inspiring story:

“From community college to my master’s degree, I only took out a couple thousand dollars in loans—and I paid that off pretty quickly.”

Her success was rooted in:

-Applying for scholarships consistently

-Fully utilizing grants and fee waivers

-Living at home during community college

-Making financial decisions based on long-term goals

This disciplined approach gave her financial peace of mind—and serves as a model for others aiming to graduate with little to no debt.

Everyone’s Journey is Unique

While Counselor Liz stands firmly on the “danger” side of the student loan debate, she recognizes that each student’s situation is different.

“For some, taking out loans is really necessary at different stages depending on their life.”

The key takeaway? Know your options, get help early, and think long-term. If you’re uncertain about what’s available to you, connect with your school’s financial aid office or counselor. There’s likely free money waiting—you just have to apply.

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