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…
Tag: Fiscal plan
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…
More Details About Federally Funded Student Loans
As interest rates for subsidized Stafford loans (i.e. interest is withheld throughout college) is poised to increase from 3.4% to 6.8% as of July 1, 2013, Congress is considering to postpone the increase, as happened in 2012. (BTW, unsubsidized Stafford loans, where interest begins accruing from the date promissory note is signed, is already 6.8%.)
College Degree: Gateway to Middle Class Prosperity or Financial Burden?
While many students and their families pursue a 4 year college degree for the imagined financial security and solid middle class living, the cost(s), both to pay for the degree and the long term effects of earning the degree, may be greater than the return. Generations have been raised to expect that their standard of…
Are Families “Shopping Around” For the Best College Deal?
The growing gap between the rate of inflation and increasing tuition, since 1985, may cause families to more carefully consider the worth of a college education, and “shop around” for the “right” campus.
College and The Middle School Years
Middle school parents’ sixth sense about positioning their ‘tweens for college often becomes more pronounced, as families are considering choices for high school. Often, the question, “Which high school will best prepare my student for college?” is introduced into the discussion. Parents begin paying closer attention to stories about so-and-so’s daughter’s boyfriend’s cousin’s neighbor…
Dialogue: A Key to Affording Rising College Costs
Parents fret over the costs of college; so do students. However, each party’s reactions to concerns over the multi-thousands of dollars per year costs of college can differ. The degree of challenge in working together to pay for a college experience can depend on the family’s communication patterns, which may determine the ability to…
Guest Post: The Savings for College Challenge, Part 4 – Saving for College vs. Saving for Retirement
About the authors: For over 25 years, Cynthia S. Meyers, CFP®, MBA, has assisted people with their Lifetime Financial Planning–helping to build and preserve wealth in every area of life. Jenny Hood, CFP® has been a paraplanner with Cynthia S. Meyers for five years and enjoys being a part of the financial planning process. ____________________________________…
Affording College Expenses = Planning, Planning and More Planning
Many families believe their income is too high to qualify for any financial aid, so begin making alternative plans to pay for college, and don’t complete the required forms to apply for financial aid–including the FAFSA. Regardless of the family’s perception or stories they’ve heard about other people’s experiences, always fill out the FAFSA. Let…
Wrapping Your Arms Around College Costs
Parents often remark that they don’t want money to define their child’s choices for college, and then proceed to ask me questions about financial aid and scholarships. The sense of an impending expense in the thousands of dollars can make any normal human being nervous. Teens can often react with guilt and fear, that they…
Applying for Free Money (i.e. Financial Aid)
The process to apply for college financial aid requires families to complete several forms. Below is a list of the forms needed to complete the financial aid application process: 2011 Tax Returns? Check. FAFSA (aka Free Application for Federal Student Aid)? Check. CSS/PROFILE? Wait a minute…What’s that? 2012 Tax Returns, done? Excuse me, why do…
No Free Lunch: A Student Loan Borrower’s Tale
My student loans were just paid-off this year–13 years after I first assumed them**. I originally borrowed $18,500 to pay for graduate school, plus a $740 loan origination fee. I ended up repaying about $29,500, which includes interest and principal–approximately $10,260 was paid in interest alone. I’m not particularly attentive to my expenses or money…
Guest Post: The Savings for College Challenge, Part Three – How Much to Save in a 529
About the authors: For over 25 years, Cynthia S. Meyers, CFP®, MBA, has assisted people with their Lifetime Financial Planning–helping to build and preserve wealth in every area of life. Jenny Hood, CFP® has been a paraplanner with Cynthia S. Meyers for five years and enjoys being a part of the financial planning process. _____________…
Transfer Admissions from a California Community College: Bargain or Cost?
Several changes to California Community College policies in the current 2012-13 school year may affect the typical transfer student who chooses community college, by extending the total number of semesters before transfer to a 4 year university. The typical transfer student is usually qualified for 4 year college admissions, yet “doesn’t know what s/he wants…