I deal with debt elimination in my line of business and I am amazed at the student loan debt that people are accumulating. Don't fall into this trap. I tried to help a young lady and it was too late. She had a Master's Degree and that couldn't even help her!
She had a $125,000 student loan that she said was in deferment for three years and she didn't need to start paying back right now. I figured it out and if she started paying just $300 per month on that, starting right now, she would never have it paid off in her lifetime. If she started paying it right now at $600 per month, it would take her 37 years.
We need to educate these young adults. We need something because older adults that should be responsible are lending all this money out knowing that a lot of these kids cannot pay that kind of money. They are ruining their credit. Think about all the credit card offers these kids get. I have three sons and each one gets at least 1-3 credit card offers a day. That is truly ridiculous. I just had it stopped. You can opt out of all these offers. Do you realize it is harming your credit too? Every time they check your credit to offer these, it bring your score down a little bit.
Please, please, if you can get some kind of scholarship or go to a community college or technical college for two years to get some of your core classes out of the way, it is much better. Then if you want, you can transfer to one of the bigger colleges. It is not worth it to spend that kind of money.
Most kids think they will step out of the college door when they graduate and be making what Mom and Dad are making. I know a lot of kids that are working in restaurants until something opens up for them. We have got to educate them. If you are in GA, take advantage of the Hope Scholarship and Hope Grant, fill out that FAFSA! Fill out every scholarship application you can get your hands on. It does pay off.
By Brenda from GA
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If you receive any kind of Stafford, Perkins, FFEL, or plus loans (all federal), the loans are discharged at the death of the student or the parent. So just pay on it like any bill, with no eye to ever paying it off.
My sons went to school on a combination of State grants and scholarships. I like grants better than either academic or athletic scholarships because the students don't risk losing the aid due to either poor grades or illness. Our order for application was first grants and then scholarships. They both graduated from the State university with about $10,000 in indebtedness. I urge you to look into grants offered by your State education system. In Maryland they are know as "guaranteed access grants" and are found in the Maryland Higher Education Commission (MHEC) web site.
Thank you Brenda on the information. I have a Senior in high school right now and we already filled out her FAFSA application and also applying for any scholarships she qualifies for. I have friends that are have been paying back student loans for 10 years and still owe. I don't want my daughter to be in the same position as them.
I have two daughters in college. They get what the FASFA will allow, they both get some from our state (check out your state's charitable foundations). Ours gives $1K/yr for students who continue to go to school w/in the state, and $500 to those who go out. I will be taking a year long training next year, and I will be able to get the $1K.
Fortunately, they have been blessed with their working when they are not in school and some from one grandparent, and they are currently debt free. We do not believe in going into debt. Our oldest is in her third year and our middle daughter is in her freshman year. We still have one daughter in 7th grade, and we pray that God will provide for her educational needs as well.
What is sad is that schools are charging approx $25-35K per year. It is nearly impossible for a student to pay that back unless they are going into a field where they will be making quite a bit when they get out, and that is very rare.
Laura
Nicely said. Bravo!
Web Site to opt out for Credit and Insurance Offers. You do not have to include your Birthday or Social Security #.
Everyone has some great suggestions, but has anyone considered taking CLEP and Dantes exams for some of their courses. You can also take courses via Straighterline.
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