Last week we featured the impact of the credit card legislation recently enacted by Congress, particularly the impact that legislation would have on college students.

Many have noted that for students, the changes represent a “throw the baby out with the bath water” approach. Certainly, college students and credit cards have not been an ideal mix as a universal rule.

One of the changes makes great sense, limiting credit lines to a student’s ability to pay makes perfect sense. But the changes will make credit more difficult to obtain for all individuals.

In what is dubbed as a move to protect students, the new legislation will require those under the age of 21 to have a cosigner to have access to a reasonable credit line. Without one, there will be exceptionally little credit available.

While such a step appears to make sense, the fact is not every student will be able to secure a cosigner. And those unable to obtain adult assistance are likely to be the group of students most in need of a basic credit line to be able to attend college.

Better Approach

Karen Gross, the president of Southern Vermont College in Bennington, Vt., recently offered a simple suggestion that would deal with the propensity for college students to get into credit card difficulties. Gross told Sandra Block of the USA Today that the new rules may well have very negative impacts on low-income students, the group that truly rely on credit cards to help them secure their opportunity for a degree.

She notes that those students that are unsuccessful finding a cosigner may well turn to other borrowing formats when money is short. Though the cosigner process is designed to protect students, those unable to secure a cosigner could end up turning to an even worse form of credit, payday lenders to help with expenses.

Instead, Gross believes it is time to develop a credit card specifically for college students. The concept she proposes allows for credit access but has two globally agreed upon limits that make sense for college age individuals.

She proposes both a limited credit line and an even lower monthly spending cap. Her suggestions were in the vicinity of a $600 credit limit combined with a $250 spending cap.

While those two numbers could be open for debate, such a design makes great sense. First and foremost, it allows low-income individuals limited access to credit even without a cosigner. Second, it would help students get started on a path to learning how to use a card without placing their future at significant risk.

As Gross notes, such a concept “would help students learn to use credit responsibly in ways that would maximize their credit score.”

Legislation Drawing Criticism

The new legislation has been drawing criticism in some circles. The key negative point centers upon the belief that the new regulations will result in higher rates and ongoing fees for those with excellent credit ratings.

But few are speaking out on behalf of college students. Students agreeing with the suggestions of Gross should contact their representative accordingly.

Perhaps with a little push from students Congress could revisit the issue and tweak the legislation accordingly.

The new credit card protections signed into law recently by President Obama have been both praised and belittled. On the positive side there is little doubt that the steps will eliminate some of the most contentious billing practices currently in place (raising interest rates without prior warning).

However, one group of critics insists that the costs of the new protections will be passed on to more reliable credit card holders. A second group of naysayers stipulates that some of the biggest issues have simply not been addressed.

In either case it is important for college students to understand that the legislation will have an enormous impact on their access to credit even as it seeks to protect them from predatory lending practices.

Credit No Longer as Easy to Get

In recent years, credit card companies have almost been throwing cards at students that were willing to sign up for one. Offering everything from t-shirts to iPods, these companies sought to develop brand recognition that they hoped would remain when college students began their post-campus lives.

Those days are likely over as the new legislation greatly reduces the availability of credit for students. Without a co-signer, full-time college students under 21 will now be able to obtain a line of credit only up to 20% of current income.

To get the full access that students once had a co-signer will be required. If a card holder does have a co-signer, most likely a parent, they will have enormous protection under the new law. The most recent legislation requires that any interest rate increase be approved by the co-signer.

Given the general financial status of most college students, the bottom line is that credit cards will be far more difficult for a student to obtain without a signature from a parent.

Major Negative Practice Still Permitted

The new law does not address one of the long-standing, college credit-card issues called affinity-card contracts. In simplest terms, colleges and universities can still sell a student’s contact information to a credit-card company.

According to BusinessWeek.com, this information represents incredible sources of money for colleges. The site notes that the e-mail addresses and contact information of the students at the University of Michigan are provided to Bank of America for the astonishing sum of $25.5 million.

The 11-year deal provides the Michigan Alumni Association 0.5% of the total purchases made using one of the school-branded cards. Therefore, the school has an incentive for students to acquire and use a specific credit card.

Given the current issues of mounting credit card debt for college students, the idea that schools would encourage debt accumulation is akin to heresy in many quarters. But the new law does not address this troubling issue.

General Positives for All Card Holders

For those holding credit cards and debt, the new law offers several protections. First, under the new legislation, interest rates may not be increased on outstanding balances until a person is 60 days late with a payment.

Second, the changes provide card holders a chance at redemption. If a card holder does become delinquent and is thus subject to a rate increase, they can regain their initial lower rate by paying on time for the next six months.

In yet another critical aspect for all card holders, the legislation also eliminates fees for paying balances online.

Changing Rules

Given the current status of credit card debt and the need for greater financial knowledge among college students, the restriction on predatory charges and the reduction in ease of credit will both be positives in the long run.

Easy credit has often meant the accumulation of debt and the potential for long term financial challenges for college students. Those challenges were then exacerbated by exorbitant interest rate charges.

Making credit tougher to get while reigning in rate increases represent a two-fold step in the right direction.

There is little doubt that the conventional financial wisdom is changing amid the current economic uncertainty. Dave Copeland of the Boston Globe recently highlighted a number of thoughts that today’s families will find noteworthy.

Quoting Larry Glazer, managing partner of Boston-based Mayflower Advisors, and Adam Bold, author of “The Bold Truth about Investing,” Copeland raised a number of issues, two of which pertain directly to parents and college students.

Good Debt, Bad Debt

Glazer, presenting to 100 public school teachers in New Hampshire, insisted it was time to rethink a number of longstanding financial practices. Those educators all taught personal finance classes in the state.

Glazer informed his audience that he took exception to the longstanding notion that there was such a thing as good debt, particularly the idea that “mortgage debt is good debt.”

The financial advisor noted that many experts still touted mortgage debt as being good. This is in large part due to two current factors.

First, the interest on mortgage debt is tax deductible. Second, current interest rates on home mortgages are at historic lows. Ultimately, those experts insist investment returns over time should outpace those mortgage rates of four percent plus.

Glazer thinks differently, pushing his clients to retire mortgage debt as soon as possible, suggesting they double up on payments whenever possible. In addition, Glazer frowns on another traditional aspect of home mortgages, taking the biggest loan that one can qualify for.

“Over the past two decades, ‘good debt’ became a buzzword, and if you could get debt, you took it,” Glazer told Copeland. “That is part of what got us into trouble. Maybe no debt in retirement is the new standard for good debt. ”

Saving for College

While another conventional practice has been to insist that families begin funding a 529 college savings plan as soon as possible, Bold insists that saving for college should come only after a number of other savings options has been addressed. The author notes that many families have followed that advice and made the placement of money in a college fund their number one priority.

Bold indicates the number one priority for parents should instead be their 401(k) and IRA plans. The author insists the first priority should be to maximize retirement contributions.

Only after they have met that commitment should they consider setting money aside for college. The rationale for that recommendation comes from one simple fact.

Bond correctly notes that there are multiple options for paying for college including scholarships and grants. In contrast, there are no scholarships or grants for retirement.

Bond also notes that students can take out loans for college or families can opt for a pay as you go philosophy during the college years using the funds that might otherwise be set aside for retirement.

Current Crisis Offers Some Lessons

While Bond advocates that families make their retirement contributions the first priority, he by no means is advocating that students turn to indiscriminate borrowing for their education. The continuing theme from the current downturn is to rethink some longstanding financial strategies, especially the notion that there is such a thing as “good debt.”

Debt represents a claim on future earnings. If the current economic downturn has taught us anything, it is that borrowing represents a risky financial strategy.

Whether it is to borrow for a house or a college education, such debt should be minimized and paid off as soon as is possible.

It appears that those auto dealers have been right all along.

A new study reveals the car a man drives is critical to getting a second look from a member of the opposite sex. It must be noted that this is a UK study and well, we all know that those European’s are just a wee bit different.

But the results are unequivocal. What a fella’ drives really does matter.

Car Gets a Lady’s Motor Running

A team of university researchers showed a substantial number of women pictures of a male model. In one instance, the model was pictured in a silver Bentley Continental, a luxury car that would set a car buyer back more than a hundred grand.

In the second instance, he was pictured in a “battered Ford Fiesta.”

The 120 women, aged 21 to 40, were asked to rate the man’s attractiveness. In a sign that women rated the motor over the man, they selected the model when he was seated in the fancy Bentley.

One of the researchers, Dr. Michael Dunn of the University of Wales Institute in Cardiff, put it this way: women will rate a man higher if he happens to be driving a “fancy motor rather than in an old banger”.

Lady Gets the Male Motor Running

Dunn went on to repeat the experiment in reverse, picturing a female model in the Bentley and the Fiesta. For the male assessors, they were not inclined to select the women in one setting over the other.

Instead, the men proved more interested in the woman, specifically her face and figure. Status had no bearing on the views of the men, a fact that could prove very interesting as women become more independent and wealthy.

Dunn noted this in both instances, this was an evolutionary and not a social trait. He stated:

“There’s a wide variety of evidence that does suggest that females are more influenced by wealth and status. It’s not a recent phenomenon. It is very ingrained and the evidence is not just anecdotal.

“Females focus on questions of wealth and status because if the male possesses those, that male would be in a better condition to rear healthy offspring.”

On the flip side, those same evolutionary trends caused men to view women in terms of reproductive attractiveness. Wealth or status simply does not enter into the equation.

Next Study

Sorry ladies, but not only does Dunn suggest these basic human traits will not change in the future, most will interpret these results as evidence that women are shallower than men.

In an effort to take the idea one step further, Dunn plans to follow up with another status-type study to determine what happens when a middle-aged man chooses to purchase one of the more expensive cars. Specifically, Dunn would like to determine if the high-status car can actually overcome the current negative impact of age on attractiveness.

The question: can the right car overcome a receding hairline and a corresponding growing waistline.

In this economy, applying for financial aid may be an admissions disadvantage.

Most families are surprised to see the page one question on the common application form that asks whether you will be seeking financial aid. Ultimately, the question means admissions committees are aware of your financial need as they review your application packet.

True, the question does not reveal how much aid you will need. But the fact that the question is asked and the answer is available to admissions officials, it would seem that those schools that tout themselves as need-blind just might not be so need-blind as they indicate.

Paying in Full

In late March, the New York Times reported on what may or may not be a changing college dynamic. In “Paying in Full as the Ticket into Colleges,” the Times notes that schools are in fact letting in more wealthy students despite claims they are need-blind.

According to the Times, schools are admitting more students from the waiting list and more transfer students. In addition, some colleges have accepted more international students and only those international students that can pay in full. In addition, there was the suggestion that some schools may be using zip codes or parental backgrounds to help assess a family’s ability to pay.

This should come as no surprise given the financial times. College endowments have followed the path of most families’ college savings plans; sharply downward.

This creates a double-edged sword for higher education. Many applicants are in greater need of financial aid at the very same time that schools have fewer funds available to allocate.

Subsequently, the result has placed an even greater importance on a student’s ability to pay. Simply stated, every full paying student provides additional funds for schools allowing them to then help other students.

And the more full-paying students a school has, the better the school is able to weather the economic downturn.

Not So Need-Blind

While few schools seem willing to admit it, the general consensus is that financial need is playing a more significant role in the selection process. That may not be welcome news for students but it is a fact that applicants must keep in mind.

So, if schools are not so need-blind, what should a student do? The answer is relatively simple.

If you have the funds for school, you may now apply to more selective schools with greater confidence that an acceptance can follow. The economy will not make up for a poor transcript, but in an increasingly competitive market, strong resumes combined with an indication that you will not require financial aid may mean a greater chance of being accepted at more selective colleges.

For those in need of funds, a little more time selecting schools may be necessary. Given that your need might play a role in being accepted, it is imperative that you carefully select your back-up schools based upon a realistic desire to attend those schools.

In theory, need-blind means that your application would be reviewed based on your credentials only. In practicality, it could mean your need would get in the way of your being accepted at the more selective colleges.

Therefore you might get passed over by your number one college choice despite your academic record. If your own state university is not one you truly want to use as a back up, then examine flagship campuses in other states for a school that would meet your academic needs.

When it comes to reducing college costs there are several factors that students can control.

Cutting Expenses

Students can consider living at home for a semester or two. They can consider a community college for their basic requirements for either their first semester, year or even their first two years.

Students can also consider a quality state school, generally a third to a half less than the cost of a private school. As with a community college, students can consider a year or two at a state school then transfer to a more selective school for their junior and senior years.

Another simple suggestion that students should carefully consider is to take one additional course per semester, regardless of the cost of the school they are attending. Doing so for five semesters will generally allow students the chance to complete their program in three and a half years.

Finishing just one semester early means a significant reduction in non-tuition costs, eliminating one semester of room and board and academic-related fees. Being able to take a semester off during the four-year period also gives students a chance to work full time to earn funds and thus reduce the amount of money that must be borrowed.

In fact, one of the more interesting ideas that has been thrown around of late is for schools to examine three-year degree options for students. Students should keep an eye open for such schools as finishing a full year early can really reduce the costs for students.

Negotiating College Costs

In addition, when it comes to the costs of college, Lauren Starkey, admissions expert for the Examiner, insists it is possible to negotiate the costs of college. While most of us tend to focus on the price which is indeed likely to be fixed, Starkey notes that students and their families should treat college like any other retail purchase.

In other words, prospective students should not simply accept the financial aid offer from the school without at least meeting with the aid officers to see if they just might be able to do better by you.

Those in Best Position to Negotiate

First off, it must be noted that one group of students is in the best bargaining position. Those who have a record of achievement, either in the classroom, in the athletic arena, or on stage, are in the best position to negotiate.

In addition, students accepted at more than one school also are in a better position. Students can compare aid packages then use those packages as a negotiating tool.

In fact, a decent aid offer from one school can be used as a bargaining chip with a second school that maybe did not come through with any aid. Used in a positive, non-threatening manner, you just might receive an aid offer from the second school after all.

Additional Aid Options

Once you have filled out the Free Application for Federal Student Aid (the FAFSA), you will know what sum you are expected to pay for college. Here Starkey offers some solid advice.

“If school A costs $25,000 a year and FAFSA’s equation says you can afford $12,000, your need is $13,000 a year,” notes Starkey. She then goes on to relate a critical aspect of that need calculation.

While schools will expect you to carry some loans, “many schools don’t expect you to carry all of that in loans,” writes Starkey. “They have work-study programs, grants, and loans to help close that gap.”

One of the more interesting developments is that the more selective a school is, the greater chance a school will “meet 100 percent of a family’s need.” Here again, only students with strong credentials will be considered at these colleges, so high-achievers are the ones most likely to secure additional funds.

But the critical step, according to Starkey is not to simply accept the offer without first asking if the school can do any better. In other words, “you have to ask.”

Cost of College

The increase in college costs in recent years have led to enormous challenges for students and their families. Unless you are one of the very fortunate folks for which money is no object you need to give careful consideration to controlling college costs.

A college degree can be a ticket to a good job and a better future, but that is only true if you can earn that degree while minimizing the debt you take on.

One of the more highly-touted college education savings plans is the 529, so named after Section 529 of the Internal Revenue Code. Designed to help families set aside funds for future college costs, 529 Plans can be utilized to pay the costs at qualified colleges all across the nation.

However, when it comes to specific 529 plan options, investors must realize that not all plans are getting the job done.

Popular Saving Option

In recent years, the 529 college savings plan has been growing in popularity. One key element of 529 plans is that they are not state specific. In most cases, students can live in one state, use a 529 plan from another state for investment purposes and then choose to attend school in some third state.

Plans can differ state by state so it is important that investors do their homework. While dollars that go in are taxable at the federal level, all earnings are free of future tax liabilities. In addition, some states offer tax breaks on some of the ingoing dollars.

Complicating the concept however are two distinct forms of 529 plans. Savings plans which work very much like a 401K or IRA. Such a plan will offer various investment options to the investor.
Prepaid plans allow students to pre-pay all or some of the costs of an in-state public college education. These plans can later be converted for use at private and out-of-state colleges.

Critical Data

Since funds are available in every state yet vary from state to state, it is imperative that students and parents research the various options available. Morningstar.com is a site that independently evaluates 529 plans and publishes their findings publicly every year.

Given the impact of the recent economic downturn on everyone’s investments, it is easy to see why the selection of a particular plan is extremely critical. Morningstar thoroughly analyzes plans, focusing on asset-allocation, fees, flexibility, and the overall quality of the underlying investments.

Within those categories, one of particular note involves fund flexibility based on the prospective student’s age. Such options are critical for investors to adjust risk tolerances based on when the money would be needed.

The recent economic downturn hammered home the point that mutual fund investments are volatile. Plans that did not allow investors options to reduce risk and lock in earnings as the student neared college age were particularly problematic in the recent downturn.

Five Best and Five Worst

Remembering that one can likely invest in any state (though specific state tax benefits are available only for residents), the top five plans according to Morningstar are:

• Ohio CollegeAdvantage 529 Savings Plan;
• Indiana CollegeChoice 529 Direct Savings Plan;
• The Utah Educational Savings Plan Trust;
• Virginia Education Savings Trust;
• Virginia CollegeAmerica 529 Savings Plan.

For those who like strong track records, the Utah plan has long been a favorite of Morningstar while the two Virginia plans were also on the top performer list of a year ago.

On the poor performer side:

• Nebraska State Farm College Savings Plan;
• New Jersey Best 529 College Savings Plan;
• Montana Pacific Life Funds 529;
• Ohio Putnam CollegeAdvantage;
• Nebraska AIM College Savings Plan.

Again, for those who consider the most important item to be a fund’s ongoing-track record, the public should really think twice about Ohio Putnam CollegeAdvantage and Nebraska AIM College Savings Plan. Both are holdovers from last year’s worst performers (though praise is given for changes in the Ohio Putnam plan).

Other Funds

For those wanting to research the funds within their home state, a 529 Plans link is available. Just remember to think through your home state’s plan, particularly if it offers in-state income tax deductions, matching grants or other benefits for state residents. These factors can truly tip the scales towards selecting a solid in-state option over a high-ranked out-of-state plan.

And for more info on saving for college, info that includes saving options in addition to 529 plans, try this Morningstar “Guide to College Savings.”

Top honoree rejects recognition based on choice of Obama as graduation speaker.

It is not often that someone turns down a prestigious award from a college like Notre Dame.

But then again, it is equally unusual that the presence of a newly-elected, highly-popular president, would be the catalyst for rejecting such an honor.

But that is precisely what Harvard Law professor Mary Ann Glendon has done. Citing the school’s invitation to Barack Obama to deliver the 2009 commencement address and plan to award the president an honorary degree, Glendon has politely said thanks, but no thanks to the university.

Initial Acceptance

The issue centers upon the conflicting position of Catholics and the president on the issue of abortion.

In December, Glendon, a former ambassador to the Vatican and a consultant to the U.S. Conference of Catholic Bishops had been selected to receive the 2009 Laetare Medal. Described by the university as the “most prestigious award given to Catholics” yearly, the medal recognizes those “whose genius has ennobled the arts and sciences, illustrated the ideals of the Church and enriched the heritage of humanity.”

Glendon, chosen as commencement speaker and given an honorary degree from Notre Dame in 1996, was at first pleased to learn of her selection last December. However, when she became aware that Obama was selected to receive an honorary doctorate and given the opportunity to give the commencement address, she found herself extremely dismayed.

From Critic to Absentee

Still, it appears that Glendon was set to attend, at least initially. Reports had the Harvard Law professor attending the ceremony and accepting her award so that she could take advantage of her opportunity to provide public remarks to criticize the president’s position.

But later, when it appeared that Notre Dame might utilize her presence at graduation as a step towards defending the school’s choice of Obama as commencement speaker, Glendon decided to reject the prestigious honor.

Directly citing the abortion issue, Glendon wrote in her university rejection letter that the choice demonstrated “disregard of the U.S. bishops’ express request of 2004 that Catholic institutions ’should not honor those who act in defiance of our fundamental moral principles’ and that such persons ’should not be given awards, honors or platforms which would suggest support for their actions.’”

Moreover, in her letter to Rev. John I. Jenkins, Notre Dame’s president, she noted that the university appeared to be seeking to use her to balance off the more recent, unpopular selection of Obama.

She first cited one of the Notre Dame talking points regarding the matter:

“We think having the president come to Notre Dame, see our graduates, meet our leaders, and hear a talk from Mary Ann Glendon is a good thing for the president and for the causes we care about.”

Then soundly rejected the idea that commencement was a place for dissenting views to be aired. She wrote:

“A commencement, however, is supposed to be a joyous day for the graduates and their families. It is not the right place, nor is a brief acceptance speech the right vehicle, for engagement with the very serious problems raised by Notre Dame’s decision—in disregard of the settled position of the U.S. bishops—to honor a prominent and uncompromising opponent of the Church’s position on issues involving fundamental principles of justice.”

Tough Position for the President

Given Obama’s ability to see the large picture, the rejection by Glendon, a professor at the president’s alma mater, has to be upsetting to him personally. In addition, the fact that such a prestigious honor, awarded prior to his being chosen to speak, would be summarily rejected on account of his being selected definitely puts the president in a very difficult position.

It is perhaps too late for either Notre Dame or the president to rescind. Most notably, if he does preside at commencement as expected, Obama will need all of his rhetorical skills and speech writing talents to ensure his presence does not undermine the spirit of the day for those graduating.

Most people will insist that college cannot be done without some form of financial assistance. That is most likely true for the vast majority of prospective college students.

However, the idea that one must borrow significant sums of money to earn that coveted diploma is not entirely true. In fact, it is possible to graduate with little, to no debt if you follow these five basic steps.

Earn Money While Attending College

While it is far more enjoyable to ease through four years of college study with a focus entirely on academics and your social life, the simplest way to minimizing debt is to work when you can.

During the summer months look to work two jobs if you can. Not only can you bank significant amounts of your earnings if you set your mind to it, keeping busy during the summer months helps reduce your spending tendencies. The result is a win-win.

In addition, plan on working, at least part-time during the school year. Working as little as 6-8 hours a week can produce ample amounts of ongoing spending money. Push it to 12-18 hours and you can actually earn enough money to pay next semester’s fees and book costs.

Lastly, research schools that offer co-op work options. Many schools are affiliated with specific industries whereby students can combine work and study options. With such a program, students earn money while working in their desired field or the company receiving work services helps pay a portion of the student’s college costs.

Select Your College Based on Costs

After countless hours of preparation, it may seem that your choice of college should be based on prestige. That simply is not the case in the long run.

What is true is a diploma from a prestigious school can help you with that first job. But thereafter, your value to any employer will be based on your performance.

If choosing a dream college means borrowing then you should rethink your choice. State universities offer quality educational options often at half the price.

Beginning your career in a financially stable position will allow you the time to prove yourself. If you accrue significant debt while in school, that debt will impact your career options for years to come, forcing you to choose employment based solely on pay.

Apply for Scholarships and Grants

Research every scholarship and grant option available to you, whether it be from your home town, your high school, your chosen college, etc. Then apply for every one that matches your situation.

This is free money, as good as any you can earn, and can go a long way towards reducing college costs. Also, many scholarships and grants are renewable: once you have obtained one, as long as you meet the academic expectations you may well receive the funds for all four years.

Be sure to research school-related options that pertain to your area of study. Some may not be available until your third or fourth year of school.

One, Paid-off Credit Card

As you enter adulthood, you will be besieged by credit card offers. Each will likely offer a free gift in return for signing up.

Select one card based on its cash back or reduced-expenditure percentage that makes sense for you. Some cards reduce gas purchases by a nickel a gallon, others offer cash back on all online purchases, still others offer travel benefit options.

Select the one card that works best for you and say no to all other cards. Limit your use to those purchases where it directly benefits you; otherwise pay cash to ensure you realize just how much you are spending with each transaction.

Most importantly, pay the monthly balance every month. Do not accrue interest or payment fees. Those costs can kill you, putting you quickly into a position where the card expenses are more than you can handle.

If you cannot discipline yourself to pay off the monthly balance, then cut the card in half and dispose of it. A significant amount of debt accrued by college students is directly attributed to the ease at which credit cards facilitate unwarranted discretionary spending.

Consider Living at Home

One of the biggest college expenses is the cost of room and board. Clearly, if you are attending school a significant distance from home, you will need to consider living on campus.

But living at home can save you significant sums of money. Many students are taking advantage of their community college network, living at home for the first year or two of study while earning their basic course credits.

For those who live near their state college, the same opportunity is available.

Living at home will limit the social options, no doubt, but college is first and foremost about earning a degree. Minimizing room and board expenses is an excellent way to reduce the costs of college and helping you graduate debt-free.

Graduate with a Secure Future

Earning a college diploma can be the catalyst to a wealth of career options but the debt you accumulate while earning that diploma can greatly impact those options. The best way to ensure your future is to minimize the debt you accrue while securing that coveted diploma.

With a little extra effort and a few sacrifices, it is possible to earn a diploma and remain debt-free in the process.