Money is tight, College is expensive, and the family can’t or won’t help as much as you need. College is a financial challenge, no doubt about it. What to do? Shall you take a job in college, or take a loan to cover college expenses? You just got an offer to man the Seven/Eleven store at night or to operate the cash register at the nearby supermarket. Should you take this offer or take out a loan? That’s the question.

Is a job in college a good option?

Yes, I know, money is constantly on our minds. Bills are piling up, holds and evictions are hanging over our heads, and hunger lurks in the background. I know, it’s all bad when money is in short supply — there is no doubt about that. But what would be the best source of money: would it be a job or would it be a loan? Which is the better choice?

My advice is simple: don’t take a job that requires a significant time commitment in college, if you can help it. Taking a heavy job in college is a bad financial decision; in the long run, you will actually lose money by taking a job, not gain money. How so?

As I mentioned in previous posts here and here, good grades in college are pretty much a must for getting a good job after college or for being admitted into a professional school. And let me tell you, even if you are superman or superwoman, you’ll find it very difficult to achieve your full potential in grades, while holding a job with a serious time commitment. This has been substantiated again and again by scientific studies from Indiana University and other research institutions. Time is of the essence when it comes to grades, and devoting a significant portion of your time to a job will harm your grades. And don’t believe even for a second that you can recover the time you spend on your job by sleeping less; it won’t work. Good sleep is also an essential ingredient in getting good grades.

A part-time job in college could be OK

Mind you, let’s not go to the other extreme! Some jobs in college are OK, and can even be helpful. Jobs such as work-study, a research position on campus, etc., are great options. But any job that requires more than ten or so hours a week will impact grades.

From a financial perspective, the time you invest in earning money in college is not time well spent, since it carries the risk of lowering your grades and, as a result, reducing your lifetime’s earning potential after graduating from college. You may lose substantial future earning for meager pay during college. Not a wise choice.

Taking loans, especially student loans, is a much better option. Yes, I know, many advise against putting on Debt; there is even a prominent radio personality who adamantly advocates against taking on any kind debt. True, you should avoid accumulating unnecessary debt from frivolous spending. But completely disavowing debt is a misunderstanding of the way our economy works. Indeed, debt is the fuel that drives our economy. All businesses, large and small, use debt to fuel their growth and expand their reach. In fact, the terrible effects of our recent recession can be traced to a credit crunch — a lack of money to borrow.

Think about the long-term impact of a job in college

So, if you must choose between a job and a loan to finance your college education, I say take a loan. This will allow you to devote all your time to studying, helping you succeed in college and propelling you into the career of your dreams after graduation. Don’t neglect, though, to major in a field that holds the promise of a financially rewarding future, so you’ll be able to repay your loans painlessly.

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Jacob Hammer

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