Paying for College 101

Posted by Judy Anne Cavey on Feb 15, 2012 in , , | No Comments

 

Get schooled on the best ways to finance your degree(s)…

Financial advisor powerhouse Suze Orman lays out an intelligent and simple plan for parents and students, keeping debt reasonable. See her tips, which I’ve condensed and added to:

1.) Students should always borrow before their parents for a college education. There are valid reasons for this, just one would be the debt is the student’s responsibility, not the parents. Parents have their own set of personal debts to contend with and retirement ahead of them. However, parents or guardians should assist students in their quest to secure loans with necessary financial paperwork, emotional support and encouragement.

White House Discussion: Tuition

Posted by Judy Anne Cavey on Dec 5, 2011 in , , | No Comments

Today, an important meeting in Washington, D.C. regarding college affordability and productivity is taking place.

It would appear your voices have been heard–loud and clear–”enough is enough”, regarding outrageous tuition increases nationwide. A rare meeting is taking place at the White House to discuss affordability and productivity in higher education with President Obama, presidents and chancellors of 10 colleges: public universities, large state university systems and private institutions. Also in attendance: Arne Duncan, Secretary of Education, White House advisers, Jane Wellman of Delta Project on Postsecondary Costs, Productivity and Accountability and Jamie Merisotis of the Lumina Foundation.

One Trillion Dollars: U.S. Student Debt

Posted by Judy Anne Cavey on Dec 1, 2011 in , , | No Comments

Who’s to blame for this? It’s a combination of several factors.

This is a complex problem facing college students, grads, dropouts and anyone who consigned for a student on a loan. But it also is a growing issue for the American people, in general, because several experts are citing it’s the next “bubble” for the U.S. And since we are wallowing in the aftermath of the last burst bubble–subprime mortgage loans–we can’t afford to have this latest bubble burst.

FinAid, a great site for college financial aid information, recently set up a clock for your viewing pleasure. Simply log on to StudentLoanDebtClock to see the current loan debt tick by, it includes federal and private student loans.

Confused about 529 College Savings Plans?

Posted by Judy Anne Cavey on Oct 26, 2011 in , , | No Comments

According to the Financial Research Corporation, families contributed 75% more in 2010 than in 2008 to these plans.

According to the article by Deborah L. Jacobs, “Collegiate Confusion”, featured in Forbes magazine, “The main appeal of a 529 is income tax savings. You put money in one of these plans and you don’t have to pay federal or state income tax on the earnings, provided the cash is withdrawn to pay for college or graduate school tuition, fees, room and board, or books. In some cases you also get a state income tax deduction for your contribution.” However, there’s more to these plans that you’ll need to be aware of.

Student Loan Consolidation

Posted by Judy Anne Cavey on Sep 19, 2011 in , , | No Comments

There’s only one type loan to consolidate–a student loan–and now is the time to do so.

One money management expert and best-selling author, Dave Ramsey, believes students would be wise to obtain all the facts before attempting to consolidate students loans. In his Q & A with American Profile, Mr. Ramsey discussed how student loans are different than other kinds of loans and credit, therefore, are good candidates for consolidation. Here are his rules if this sounds like something you want to do:

1.) You are allowed one chance for student loan consolidation, so do it when interest rates are low–right now.

A Diploma with Less Debt

Posted by Judy Anne Cavey on Sep 7, 2011 in , , | No Comments

Forget that a degree from a prestigious university has more value, it’s just more expensive…

According to Laurence Kotlikoff, a Boston University economist who has studied earning and consumption patterns, in his interview with William Baldwin in Forbes magazine, he advocates we start to think differently about college degrees. First, Mr. Kotlikoff states prospective students should choose a major carefully–considering the cost of the degree and future earning power once graduated and long-term potential for employment. Dividing majors into “high payoff” and “low payoff”, he compared majors which on average produce high and low incomes, but also showed what happens when the cost of education is added into the mix–something college students and their parents may consider.

Student Loan Cancellation 911

Posted by Judy Anne Cavey on Aug 1, 2011 in , , | No Comments

Even when your intentions are good, a lot can go wrong in life.

Understand how loan cancellation provisions can help you…

Federal student loans offer several loan cancellation provisions for the following reasons:

Closed School Discharge-Your college closes while you were attending, or 90 days after withdrawal.

Unpaid Refund-If you withdrew and the college owed you or the lender a refund, but never returned the funds to the lender.

False Certification Discharge-Improper certification of the ability to benefit from college or for victims of identity theft.

Death Discharge-If the borrower (parent), or student for whom the parent borrowed a Parent PLUS loan dies.

Student Loan Repayment 411

Posted by Judy Anne Cavey on Jul 28, 2011 in , , | No Comments

There are three helpful sites you’ll want to bookmark regarding your student loans…

Congratulations! You’ve survived the loan application process and your education is funded. Now what? It’s imperative you take some time to organize paperwork, mark your calendar and understand a few tips from the experts.

Sites to Bookmark

The first site is Suze Orman’s, go to the home page where you’ll find “The Suze Scoop”, Repaying Student Loans, this article is dated 2/17/11. Another site, (which Ms. Orman mentions), is by college financial expert Mark Kantrowitz, Finaid. The final site is FastWeb, which has a Repaying Student Loans Quick Reference Guide that is downloadable. This reference shows “Key Student Loan Resources” on a long list with web addresses and phone numbers you’ll want to keep handy.

Smart College Financial Planning

Posted by Judy Anne Cavey on May 19, 2011 in , , | No Comments

Is it true the costs associated with a higher education require a small fortune?

The answer: it completely depends on your plan. Now can you buck the expensive system and still obtain a great education. It’s easy, just follow this advice…

State University or Community College

If you’ve got your heart set on a private school, you can always transfer after saving yourself thousands by spending the freshman and sophomore years at your local community college or a nearby state university.

GPA, Credit Rating & Financial Aid

Posted by Judy Anne Cavey on May 18, 2011 in , , | No Comments

Your GPA has always been very important, but your credit rating is starting to take the lead.

Here’s some bad news: a great GPA won’t help you get your dream job any longer. Employers are running credit checks to see your credit score. If your debt is excessive and you have been delinquent with payments, chances are you might not stand a chance to be hired–even with a great GPA. It’s imperative to keep debt as low as possible and continue to pay on that debt.