Even though the news may be promoting economic recovery, a recent UCLA study showing that middle aged parents aged 50 to 64 are moving back into their elderly parents home with kids in tow for financial reasons – may support a competing meme that shows our current financial state isn’t so rosy. To further add…
Tag: Borrowing
Why Winning Free Money Takes Effort
Scholarships are not mysterious. Winning them takes work – which is only a continuation of the efforts to be eligible to compete for scholarships in the first place.
Rising Student Loan Delinquency
Student loans can help fund college expenses, yet create a future financial burden for students when in repayment. Currently, the total of student loans 90 days or more delinquent is at a record high of $124.3 billion – an increase of more than $3 Billion since last quarter. Possible reason for the delinquency can include…
Student Loan Repayments May Cost More Than The Amount Borrowed
Changes to repayment rules for Federal student loans offers borrowers flexibility to manage their debts, as outlined in a recent New York Times article. However, not only do the recent changes provide assistance for current borrowers, potential student loan borrowers can plan ahead. Our recommendations are outlined, alongside excerpts of the article in italics. Rising…
How to Reduce College Costs
The “sticker shock” of college tuition rising at 1140%, as we posted here, can overshadow the need to calculate living and housing expenses, as part of the overall costs for college. Yet, families who budget for ALL college expenses for 4 years, not just year-to-year costs, are prudent and may find ways to save money. …
A Career May Be “Part Time”
“Full time” employment may not come from only ONE job for college grads. The Los Angeles Times provides more details on the “part-time” and temporary jobs growth. Cartoon Credit: http://www.intoon.com/cartoons.cfm/id/125005
Student Loan Interest Rate Relief In Sight
The U.S. House of Representatives passed a bill to lower Federal student loan interest rates to 3.9% from 6.8% for the upcoming 2013-14 school year–following the U.S. Senate’s passage of the same bill last week. The rate reduction would mean a savings of $944.44 in interest over the life of the loan, for first year college…
1140% = Increase In College Tuition Since 1978
Another chart showing college tuition is increasing at a steepening rate: And is causing families to spend a greater portion of the family budget to pay for college expenses, thus making college “more expensive”: (If unable to view chart, click)
The Worth of Wealth
What is wealth? The Urban Institute recently reported that the average net worth of today’s 29 to 37 year old has fallen 21% in comparison with previous generations since 1983. On the surface, this idea of “less wealth” may seem like a bad thing, as generally, I don’t like to be “less” at anything. However,…
It’s Never Too Early (or Late) to Plan for College Costs
After talking with News10 Sacramento this morning about financial aid and paying for college, thought I’d share a few additional tips and expand on a few points we discussed: Understanding the Family’s Finances: The more parents can understand the family finances, the better planning can take place for the additional expense of college tuition. Some…
The Student Debt Dilemma
While debt can be a useful tool to finance a college education, potential borrowers (and their families) would be prudent to think through their choices, as we discussed in a earlier 6-part series on fiscal planning. And, to add emphasis on the need to think ahead, Fidelity Investments recently found that, “[e]ven with the…
More 25 Year Olds Have Student Debt…And At Higher Average Amounts
As seen in the chart below, the red line indicates that the portion of 25-year olds with student debt has grown from 25% in 2003 to 43% in 2012–meaning an increasing portion of young adults are choosing to “bring forward” expected future earnings to pay for a college degree. Furthermore, the black line on the chart…
Will College Price Itself Out of Its Demand?
As the price of tuition continues rising, will students (and their families) choose to forgo a college education? The most recent college application cycle for Fall 2013 doesn’t seem to indicate that students are not choosing a college education. Applicant numbers are up around the country from a 10.7% increase for the University of California…
What’s College’s Value Given Today’s Prices?
Choosing a college based on price or which campus offers the greatest amount of financial aid can seem like a foreign concept to many families. However, as tuition continues rising annually and parents face the quandary of balancing saving for retirement and paying for college, at the same time their income seems to be shrinking,…
Not Every Student Loan Balance Is In the Six Figures or Overdue
Contrary what the media often reports, not all student loan balances are unmanageable amounts. Further, since not EVERY student loan borrower is delinquent on payment, adds credence that not all student loan balances are unwieldy. Graphs from The Federal Reserve Bank of New York, February 28, 2013