Planning for College Without Student Loan Regret

College is one of the most important—and expensive—investments a family can make. And while it’s often seen as a necessary path to opportunity, the rising cost of education has left too many graduates with one thing they never expected: regret.

At Deseret First Credit Union, we believe your education should empower your future—not burden it. Here’s how families can plan wisely, avoid unnecessary debt, and prepare for a life of purpose, not just payment plans.

1. Start with the End in Mind

Before choosing a school or signing any loan agreements, take a step back and ask the big questions:

• What is the long-term purpose of this education?
• How does it align with your spiritual and personal goals?
• What career path are you preparing for—and is the degree required?

Encourage young adults to reflect on their calling, talents, and direction. A clear sense of purpose leads to smarter financial decisions.

2. Don’t Default to the “Dream School”

Many students choose a school based on brand, social pressure, or emotion—without realizing the price difference.

A faith-aligned approach asks:

• Where can I get a quality education at the best value?
• Are there good options close to home or online?
• Can I complete core credits at a community college first?

A “less prestigious” school without debt can be more empowering than a top-tier school with $100,000 owed.

3. Estimate the Real Cost—Not Just Tuition

College pricing can be misleading. The true cost includes:

• Tuition and fees
• Room and board
• Books and supplies
• Transportation
• Personal expenses
• Interest on any loans

Use the school’s Net Price Calculator to get an accurate estimate. Then build a full budget—including non-negotiables like tithing and savings.

4. Save Early—and Consistently

Start saving as early as possible. Even small, consistent contributions to a 529 College Savings Plan or custodial account can make a big difference.

If your child is already in high school, it’s not too late:

• Set a monthly goal and stick to it
• Ask family to contribute for birthdays or holidays
• Encourage your child to work part-time and contribute too

A mission, a gap year, or community college can also buy time to save more.

5. Maximize Scholarships and Grants

Scholarships are free money—but they require effort to find and apply.

Tips:

• Use platforms like Scholarships.com, Cappex, and Fastweb
• Apply for local, church-affiliated, or major-specific awards
• Don’t overlook small scholarships—every bit helps
• Treat applications like a part-time job: 10 hours could yield $1,000+

Also explore federal and state grants through FAFSA—the earlier you apply, the better.

6. Borrow Responsibly (and Only as Needed)

If loans are necessary, borrow the minimum required—and understand exactly what you're agreeing to.

Guidelines:

• Use federal loans first—they have better rates and protections
• Avoid private loans unless absolutely necessary
• Never borrow more than your expected first year’s salary
• Stay in touch with your loan servicer during and after college

Students should understand that debt isn’t evil—but it is a burden, and one that can limit future flexibility, marriage, missions, or service.

7. Teach Budgeting Before They Go

Financial independence starts before orientation. Prepare your teen with real-world budgeting skills:

• How to manage a monthly allowance or income
• How to avoid credit card debt
• How to track spending and stick to a plan
• How to save even while in school

Use budgeting apps like Mint, EveryDollar, or DFCU’s online tools to get them started.

8. Consider Mission Timing

For Latter-day Saints, missions add a layer of complexity—but also opportunity.

If a mission comes before college:

• Avoid enrolling and withdrawing—some schools offer deferments
• Consider saving money during the mission years
• Apply for scholarships before serving—some will hold awards

If a mission comes after a year or two of school:

• Try to minimize or delay borrowing until after the mission
• Use the break to reassess goals and financial strategy

9. Involve the Whole Family in Planning

Open conversations are key. Discuss expectations around:

• Who will pay for what
• How much parents can contribute
• How much the student should earn or borrow
• What tradeoffs are acceptable (e.g. living at home, fewer amenities)

Create a shared plan that’s based on teamwork, not guilt.

10. Stay Grounded in Stewardship

Ultimately, college is a means to a greater end. Encourage your children to pursue education as a way to serve, grow, and build—not just earn.

Debt is not a sin, but it is a stewardship. Remind them:

• Avoiding debt increases future freedom
• Wise planning brings peace of mind
• Every dollar has spiritual potential

DFCU Is Here to Help

We offer education savings accounts, financial counseling, and student-friendly products to help your family plan wisely.