Debt, despite how essential it is for many American families trying to afford college, can be in and of itself the cause for quite a bit of stress. When you factor in the further difficulty students are having finding employment after graduation, and loan management companies that can be less than forthcoming with information that could ease your repayment burdens, the tension only grows. Wouldn't it be great if there was a trick or a quick fix to help get…
The ever growing costs of college are often characterized as “an investment in one's future.” In a cruel twist of fate, the price of that investment remains on the rise, while its security begins to wane. What if we treated students as investments instead of debtors? Imagine that the amount you owe is entirely contingent on what you make. This is a reality at Purdue University and could become a well-needed alternative for students all over the country. College is very expensive, so…
Why the Parent Plus Loan is not recommended by Financial Advisors Financial Advisors who have not been informed about of all the complexities in the Parent Plus Loan program have hesitated to recommend it as a way to pay for college. There are three important reasons for their reluctance: A loan given without any consideration given to income, assets, or income-to-debt ratio is going to hurt a lot of families. Even the worst of our subprime lenders prior to the 2008 crash…
Unbeknownst to many who are struggling to pay for college, the current loopholes in the Parent Plus Loan rules allow some families to receive full forgiveness on a boatload of college debt. It’s not a viable strategy for everyone, it’s not a recommendation by any means, and there is quite a bit of controversy surrounding it, but there is a way to banish the bills from your Parent Plus Loan for good. But should you? Parent Plus Loans –…
College award letters are already fairly confusing. What's worse, they can often be somewhat misleading. This is especially problematic– considering major decisions are made based upon that first award letter; when the next one could be dramatically different. Before you accept a school’s award, there are a few steps you can take to better ensure you won't be left out in the cold later. Avoid the Bait and Switch What you see may not end up being what you get.…
Applying to college is exciting but it’s also up there among some of the most stressful things you’ll ever do. Part of the reason for that is the confusing process of applying for financial aid. If you’re like almost three-quarters of applicants recently surveyed by Citizens Bank, applying for financial aid is even more stressful than applying to colleges! So if you’re at your wits end about the aid process, you’re not alone. That same survey also revealed that over…
The name itself sounds appealing to anyone looking to cut the cost of college—the “Freshman Year for Free” program. Launched in August 2017 by Modern States Educational Alliance, the program provides more than 40 free online courses taught by top professors from top schools. Once students complete a course, they take an AP or CLEP exam giving them the opportunity to earn traditional academic credits at more than 2,900 major colleges and universities. We asked Steve Klinsky, founder and CEO of Modern States…
College for Free? As any family can attest, it takes a lot of time, effort, and attention to detail in order to successfully navigate the college admissions and student loan applications processes. So it’s easy to overlook valuable programs and resources that can really help families meet their overall college costs by actually making freshman year of college free! Learn and Earn While most families know about Advanced Placement or AP courses and exams, there’s another often forgotten avenue to…
Congratulations! You’ve gotten your first (few) college acceptance letters. There are likely more to come. You should feel great about your college accepts. (And, frankly, you should get over any rejections that you may have received—really! There are happy lessons to be learned from your rejections, truly! Watch for my blog on that topic). Right now, it is all about how to compare your choices. Now, the ball is back in your court so you still have work to do!…
For better or for worse, higher education is a deeply political issue. The rules and regulations can vary substantially depending on who’s in office. One side wants to increase federal aid, while the other wants to do away with it altogether and leave it to private institutions. It can be difficult to keep up to date with it all, but it’s important to make sure that you do so. The government may not be as forthcoming with information that could…