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As a Student Loan Consolidation Expert, I see families take on huge amounts of debt to pay for a child’s college education for their happiness and studies. In many cases, the debt becomes a long-term financial burden for students and sometimes their parents, too.<br>
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As a Student Loan Consolidation Expert, I see families take on huge amounts of debt to pay fora child’s college education for their happiness and studies. In many cases, the debt becomesa long-term financial burden for students and sometimes their parents,too. With proper planning, this needn’t be the case. Here are some tips by Bruce Mesnekoffto help you plan college financing so your children can avoid excessive student loan debt and you can avoid disrupting your financial plans. Bruce Mesnekoffis Student Loan Consolidation consultant from Student Loan Help Center and today he is with us in OurStudio. So according Bruce MesnekoffStart saving early Policy Helps alot. Accumulating significant savings to pay for college is not as hard as it sounds, but it requires a firm commitment early on. If your kids are still young, start saving today; you’ll be in a strong position financially when they reach college age, and they may be able to avoid student loan debt entirely. Parents who start saving $350 a month in a child’s college fund at birth and increase their contribution by 3-4% each year could accumulate $334,000 approx by the time the child enters college, assuming an annual average investment return of 6.5-7%. That would be nearly enough to pay the average cost for four years of state college tuition, fees, room and board, assuming that today’s cost (about $90,000) also increases at nearly 3-4% per year. It also would be enough to put a serious dent in the cost of a private college. Do Budgeting and Stick withthem A Bruce MesnekoffSaid Survey Conducted by Student Loan help Center in Florida, in this, half of parents said they were limiting their children’s choice of college based on price.But it’s important to be realistic about what you can afford and to discuss it with your children well before they start applying to colleges. Once you set a limit for what you can handle, your children can still apply to schools that are out of your price range — but with the understanding that they would also need to receive merit aid toattend. Dnt Avoid privateloans Today’s Students know the differences between federal and private student loans. But it’s important to understand the key ways in which these two types of loans will affect your student’s finances aftergraduation. Unless your family has the resources to pay for the entire cost of college out of savings and current cash flow, you should file a Free Application for Federal Student Aid, orFAFSA Private loans also often require parents to co-sign. This cannot be a bad idea. Co-signing puts parents on the hook for the entire loan balance if the student can’t pay the loan and ithelps
students and family too. But students should resort to private loans only after they have exhausted all other sources of funding or they get discount rates from private loan consultants and only after they have carefully considered the long-term implications of thatdebt. According to Bruce MesnekoffStudents have to developstrategy Families with greater need may qualify for subsidized federal loans and work-study programs, which can help defray some of the cost. While only the neediest families will qualify for federal government grants, many schools may offer grants, scholarships or special loan packages based on a student’s financial need. (Note: Some private schools require students to file an additional form to apply for need-based funds from theinstitution.) Many students also find that with the help of merit aid, in the form ofgrants or scholarship money, the cost of some private schools is not much more than the cost of a state school. Schools offer this money to the students they most want to attract, which means the top third of candidates will likely receive much better offers than the bottom third. To maximize your children’s chance of landing a good merit aid package, focus on schools for which they are slightlyoverqualified. Make a college spendingplan Also consider how much debt will accumulate over the course of your children’s higher education. It’s important to think realistically about the impact that debt will have on them. If they won’t be able to cover student loan payments, based on their expected income after graduation, you may need to consider a lower-coststrategy. Help your kids understanddebt I find that soon-to-be college students have no idea how student loan debt will affect their finances. Too often, the resulting college degree doesn’t increase the students’ income potential enough for them to easily cover student loan payments. But kids have little experience with budgeting a monthly income and therefore no basis on which to make rational decisions regarding student loandebt. Nextsteps If you need or looking for consulting or consolidating for your debit crises or student loans you can contact Bruce Mesnekoffstudent loan expert and financial advisor from UntiedStates. Click to subscribe official YouTube Channel of Bruce Mesnekoff Follow us on Bruce MesnekoffTwitter Like us on Facebook Official BruceMesnekoff
