Great article from Toronto Star!!!

How to graduate without student debt

Two young men who finished university without applying for student loans give advice to others on how to cut expenses.

Kyle Prevost and Justin Bouchard, both 25, met in residence at the University of Manitoba. They graduated without debt, thanks to help from parents, scholarships and summer jobs.

Now working in education — Prevost as a high school teacher and Bouchard as dean of residence at his alma mater — they have published a student guide with a cheeky title,More Money for Beer and Textbooks.

“We are prime examples of the fact that you do not have to choose between living like a monk and being $100,000 in debt when you get out of school,” they say in the introduction.

“We’re offering something that no one else has offered — a viable guide to having fun in school without breaking the bank, written by two guys who have learned from their mistakes but are still young enough to remember why they made them.”

Here are their best tips on cutting expenses:

Live at home.

It’s the easiest way to save $45,000 while you’re going to university for four years. The lower cost of living with your parents means you can borrow less and pay less interest.

Apply for scholarships.

You don’t need A+ grades, just hard work and persistence.“Even though we weren’t standout students at the post-secondary level, we still each received thousands of dollars in awards money,” the authors say.

Buy cheap beer.

Studies show the modern Canadian student who enjoys beer consumes 13 drinks in an average week. You can save by drinking at home, rather than in bars, and trying your hand at homemade beer and wine.

Look for other entertainment.

Go to second-run movie theatres and bring your own snacks. Support your school’s sports teams and theatre productions. Check out inexpensive underground music.

Be realistic about student loans.

They are a pretty good deal, but not as good as having no debt at all. Don’t assume that a high-paying job awaits you. Remember that a big buildup of debt can cramp your style for a long time after you graduate.

Set up a repayment plan.

If you refuse to pay your student loans, your credit score will take a big hit. This means banks might not lend you money to buy a car or a house. Set up an automatic payment plan and don’t risk forgetting to write a monthly cheque.

Find a great summer job.

Start looking early, even in November or the summer before. Cast a wide net. Be willing to travel far from urban centres. If you can’t find anything, free up time for paid work during the school year by taking a summer course or two.

Know how the tax system works.

Get organized. Save receipts. You can get money back by filing a tax return and claiming tuition, education and textbook tax credits. Read the Canada Revenue Agency pamphlet, Students and Income Tax.

Use a budget.

You can find a student budget template at the website, My University Money, maintained by Bouchard and Prevost. Budgets are about having a plan and sticking to it.

Don’t buy a car, the authors warn. Don’t skip making minimum payments on your debt. And don’t carry a balance on a credit card, unless your goal is to become familiar with bankruptcy laws.

This is a great gift for high school students — not just those in their last year, but in earlier grades. It’s sold in Chapters stores and online at Amazon.ca for less than the cost of a 24 pack of beer.

Ellen Roseman writes about personal finance and consumer issues. You can reach her at eroseman@thestar.ca or www.ellenroseman.com