Yesterday I wrote about a college entrepreneur who started a online journal that asks for donations to be used toward his goal of becoming a millionaire. Well, now there’s a recent grad who wants people to help him pay off his student loans. I’d be surprised if this stunt works but he already has one paid sponsor on his website. Check out his story below:

Luke Livingston, of Portland, Maine is asking everyone with access to the Internet to help him retire his student loans. Livingston, 23, is a 2007 graduate of Clark University, in Worcester, Mass., and like most of his contemporaries, finished school encumbered by a mountain of debt.

“It’s really discouraging,” Livingston said. “Here I am, among the most fortunate few on Earth to have graduated from a fine American university, with a first-rate education and a degree (a double-major in Communications and Screen Studies), I am gainfully employed, and yet I can’t make my loan payments,” he laments.

So Livingston decided to let other people make his payments for him. He created a website sponsormyloans.com and is inviting anyone with $200 to spare to cover a month’s worth of debt service.

“Ways to minimize the impact of paying back my ever-mounting student loans have been kicking around in my head since, well, I first got my loans; so I put my entrepreneurial spirit into overdrive. But it wasn’t until a few weeks ago that I finally came up with what I thought was a quirky, fun and creative way to tackle my loans: Have someone else pay them back for me!”

In a bold stroke of chutzpah, Livingston is asking for help. But there could be some meaningful return on donors’ investments, too, he explains: ” for a mere $200, you can sponsor a month of my student loan payments. In return you’ll receive: all of the ad space on sponsormyloans.com all to yourself, to say whatever you’d like, for a full month; the growing media attention associated with sponsorship; and, most importantly, you get the joy and satisfaction of helping me succeed!”

Luke’s assessment is simple: “I’m a nice guy,” he says, “but unfortunately I’m not unique,  most of my peers have similar financial pressures. All I did was think of a creative and positive way to raise the money I need. Hey, it’s worth a shot, right?”

College students may want to learn more about the new “Truth About Credit” campaign organized by the nonprofit U.S. Public Interest Research Groups (PIRGs).  The campaign hopes to put a stop to the out-of-control marketing and unfair practices of the credit card industry, with a focus on college campuses.

Watchdog consumer groups have long accused credit card vendors of using sneaky marketing tactics and hidden fees to target students with little money management experience. They blame the vendors for saddling students with heavy credit card debt that even leads to bankruptcy for some.

Credit card defenders claim that the students are the ones who should be held responsible for their own debt problems. They say that students are smart enough to know they shouldn’t be spending money on things they can’t afford. They also argue that those students who pay their monthly balance in full and on time can benefit by building their credit history and earning user rewards in the process.

I think each side makes strong points. I also believe students and the credit card companies are both to blame for the current situation. Do credit card vendors use questionable marketing tactics? Yes. Could credit card companies be doing more to educate students about smart credit management? Yes. (In fact, Young Money reaches more than 2 million students each year and yet we’ve never been contacted by the consumer education department for any of the major credit card companies which seems ridiculous to me.) Should students be held responsible for charging expenses they can’t afford to pay? Of course. Can using a credit card properly in college benefit a student? Absolutely.

But students and card companies aren’t the only ones who deserve some blame in my view. What about educators and parents who aren’t doing enough to teach basic financial management to students? Don’t they deserve some criticism as well? But I’m not even sure that pointing fingers will do much good. Student debt problems are only getting worse so all the parties involved need to do more to make things better.

Students need to educate themselves more about personal finance and use common sense when using a credit card. Parents need to start teaching their kids about finance at an early age in order for them to develop good spending habits. Educators must make money management a required class for all students and help motivate them to want to learn more about how those skills can help them. Credit card vendors must provide the funding and the tools necessary to educate their current and future customers about proper credit usage.

Some people may argue that my plan is unrealistic but at least I’m trying to do my part to help students avoid credit card debt. This problem is too important for us to keep ignoring. If we work together and hold each side accountable, then there’s no doubt in my mind that we can help students get the debt relief they need.

I was sent a copy of “A Million Bucks by 30: How to overcome a crap job, stingy parents, and a useless degree to become a millionaire before (or after) turning thirty” by entrepreneur and reality TV star Alan Corey. The book tells how Corey became a self-made millionaire by the age of 28.

I was amused at some of the most radical savings techniques that helped him cut corners in his budget without cutting into his savings. I won’t endorse any of his tricks but some readers might be willing to give them a try. Here are some of the cheapskate tips he mentions:

* Never buy an umbrella. When it’s raining, just walk into any restaurant or grocery store and ask to see the lost and found. Now, don’t feel guilty. When you are done with it, leave the umbrella at another restaurant or grocery store. It’s a bit like recycling and it’s good karma too.

* Call your credit card company every sic months to get a lower interest rate, and to increase your credit limit. Threaten to sign up with a new card if they can’t. They will scramble to keep your business.

* In movie theaters that have unlimited popcorn refills, save your popcorn bag for your next visit.

* Fill out comment cards at every possible fast food restaurant. Many will follow up with complimentary food and/or gifts.
* Never buy bottled water. Go to any fast food joint and get a free cup of water. If you need some flavor, load your cup up with free lemons and artificial sweetener for some bargain ice-cold lemonade.

I wrote a post last year about the three things I had learned about college students and money since becoming managing editor of Young Money. So I felt it was time to follow up with two more observations I’ve made since then.

1. Students won’t listen to financial advice that severely restricts their lifestyles.
I’ve heard many money experts try to tell students how they should save money by making their own coffee instead of going to Starbucks. With all due respect to those well-intentioned people, they are wasting their breath. The same goes for those folks who want to students to give up their iPods or other high priced gadgets. They need to understand that young adults don’t just look at those items as expendable products. Those items have become so ingrained into their everyday lifestyle that it would be like asking them to stop breathing. A better approach is to say something like,”I know you want (an iPod/unlimited lattes/spring break trip) so what can we do to make sure you can afford to get that?” The solution usually consists of earning extra income to cover those small luxuries and/or finding a way to cut other expenses from their budget that are not as important to them.

You’re also wasting your time if you expect students to give up their credit cards until they graduate in order to avoid falling in debt. They’ll simply ignore that advice. I would never ask a student to give up his/her credit card and I don’t blame students for rejecting those who claim they should do so “for their own good.” Instead, I focus on teaching students how to use their credit cards wisely by paying their bills on time and not overspending. Students need credit cards to build a credit history. Plus, I wouldn’t want to live with the inconvenience of not owning a credit card so why should I expect them to?

2. Students think they are poorer than they really are. I recently met one of the founders of DormAid, a student-run business which offers dorm cleaning and other services to over 1,800 campuses nationwide. The company has become an amazing success in just a few years but the truly amazing part is that there are so many students that can actually afford a cleaning service in the first place. About 5% of U.S. households hire someone else to clean their home, according to a recent Ad Age article. The same story claims that college students polled regularly overestimate that number to be 30% or more of households.

Many students describe themselves as “poor” yet they sport new laptops, cell phones, video iPods, etc. I think it’s great that they have all these things as long as they can really afford them. I just think that their version of “poor” differs somewhat from most other Americans. Hey, I didn’t even own a car until my junior year of college. I realize that there are still lots of students who struggle to pay their bills each month. I’m only making the point that some students have a different perspective when it comes to poverty.

Q: I’m a new nurse with a lot of debt. I owe about $14,000 to AES in loans with a 4.5% interest rate, and I owe about $25,000+ to Sallie Mae with a 8.5% interest rate. I always give a little more in my payments than the minimum, because I feel every cent helps, but I have accumulated $14,000 in savings from working.

Should I just pay one of my loans off out right? Plus, I would like to buy a newer car, and I’m possibly wondering how the heck I’ll ever be able to move away from home. I put $800 a month into savings and $370 a month in loans. Any guidance?

A: I commend you for trying to save money, and you’ve done a great job so far, but unless you are earning more than 8.25% from your savings, you are really not getting anywhere. It is nice to have savings of $14,000, but the debts are eating up any gains from the savings interest earnings.

If it were me, I would focus that $1,100 in available cash each month on the $29,000 debt and get it paid off in the next 2.5 years or sooner. You’ve got plenty in savings, some of which you should consider using as a down payment on a home loan so you can move out of the house into a place of your own in the near future.

Mike Schiano

Mike’s new show can be heard online at Young Money Radio.

Young Money’s Todd Romer was recently interviewed by Campus Calm on the topic of students and debt. The story offers five tips to help students earn a college degree without getting into credit card debt. Campus Calm also features a free biweekly e-zine that helps students deal better with stress and find a balance between their social life and school. Having less credit card debt is a guaranteed way to avoid extra stress so please check out the article.

The latest episode of Young Money Radio features an interview with student loan expert Amy Tien-Gordon. Tune in to hear her discuss smart borrowing strategies, important deadline information, and how to save money with consolidation. You can also subscribe to our weekly Podcast for updates on new shows.

Over the past five years I’ve had the pleasure to visit more than 30 colleges, several of which I went back to multiple times. I’ve also spoken to hundreds of students about topics such as credit cards, careers, financial aid, car buying, investing and entrepreneurship. Over that period of time I’ve noticed a few things that I feel are worth sharing.

1) Many students want to start investing but they’re not sure how. This observation seems to hold no matter how liberal or conservative a campus tends to be. We get approached by all types of students wanting to know more about investing and the majority of those same students are NOT business majors as some might expect. Unfortunately, too many young adults still believe the old myth that you need a lot of money to start investing. I try to tell them that the key is to start investing early so they can use their youth to their advantage. Don’t make the same mistake I made and wait until you’re 27 or you’ll be playing catch up for a long time. Find an experienced investor to guide you then invest as much as you can afford each month.

2) Campus vendors are like the New York Yankees — you either love them or you hate them. We typically get two types of reactions whenever we set up our Young Money tent on campus for an event. Half the students are eager to ask questions about the magazine or to get free samples of whatever chotskies we’re giving away that day. The other half of the students runs past our table with their heads down and make a determined effort to avoid any eye contact.

Here’s my theory on why those two groups of students are so different. All students love to get free stuff so the first group is drawn by both their natural curiosity and their desire to get something for free. Many vendors realize this too so they exploit students by having them sign up for a charge account in exchange for a free T-shirt or a chance to win a prize. However, too many of those same students don’t know how to manage their credit properly so they wind up getting in financial trouble. Which brings me to the second group of students, those who fear or hate campus vendors.

College students who fall into the second category are often tired of being marketed to by campus vendors. They assume that Young Money is just like all the other vendors who are trying to get them to sign up for a credit card, cell phone plan, etc. We never try to sell anything on campus but those students don’t know that. Occasionally one of these market-savvy students does come up to our table and asks “I don’t have to sign up for anything to get this stuff?” The funny thing is that back when I was a student I probably was just as suspicious of all campus vendors and now I’ve become one of them! So to all my fellow “campus vendor haters” I say, “Don’t be afraid of Young Money if you see us at your school. We’re only there to hand out free stuff!”

3. Students are more money smart than they get credit for. I’m sure you’re heard all the media stories about how today’s college graduates are doomed to suffer a life of low wages and heavy debts. I get angry about this subject because I think if you keep telling people that they are bound to fail, then you’re setting them up to do just that. I’m glad the new graduates I speak to are not falling for that lie. In fact, I am very excited about the new crop of young professionals that is entering the workforce. The majority of the ones I meet are incredibly ambitious, highly tech-savvy and very eager to learn new things. I’m also amazed by how many students I meet who are either interested in starting their own business or have already done so.

The “work hard, play hard” mentality is very much alive on college campuses nationwide. Sure, I still come across some stubborn students who say ” I don’t need to read your magazine because I’m not an economics major.” I usually remind them that they still spend money on a daily basis and that everyone has to deal with personal finance issues regardless of their major. I do recognize that credit card and student loan debt are legitimate problems for many graduating students. However, those problems can be overcome over time. For example, Young Money columnist Sanyika Calloway Boyce graduated college with $15,000 in unsecured debt but now she’s debt free and speaks to thousands of students each year about how to improve their finances.

Young Money Live! will kick off its fall college campus tour at Ohio State University on Monday, September 17 as part of the Student Involvement Fair being held on The Oval from 10am – 4pm. We’ve been there many times before but we still love meeting with students face to face and giving out free copies of our magazine and other cool chotskies. So stop by and look for our big red tent with the Young Money logo. Columbus is a great place to visit and the OSU campus is HUGE so check it out sometime if you haven’t yet.

Our next stop will be at the University of Cincinnati on Wednesday, September 19 for the Welcome Week Celebration to be held indoors at the Campus Recreation Center from 10am – 2pm. I’m a bit bummed that the Reds will be out of town that week so I can’t see them play. But I know we’ll still have a great time. It rained hard last time we visited UC and we got soaked so I just hope the weather is better this time! We’ll be visiting several more schools so be sure to check out our campus tour schedule for updates and photos from past events.

If you’re getting ready to go back to college, then there are many things such as clothes, sheets, a micro-fridge, and a computer that you shouldn’t forget to bring with you. Collegeandfinance.com recently published a list of 18 overlooked items college students should bring to school. I’ve copied the list below but you can check out the full article here.

1. Ear plugs
2. Flip flops or any type of shower shoe
3. Carrying case for toiletries
4. Plugs, power strips, and adaptors
5. Cleaning supplies
6. Duct Tape
7. Hammer
8. Screwdriver (Phillips and Flathead)
9. Stapler
10. Door hangers/Hooks with adhesive backing/Something to hang stuff on
11. Storage containers/Crates
12. Bottle opener
13. USB Flash Drive
14. Pliers
15. Extra bed sheets
16. Vitamins
17. Air fresheners
18. Microwave