College tuition has increased at twice the rate of inflation. This means that a college education will be more expensive 10 or 20 years from now.
College Fund
Planning for college expenses is an important aspect of financial planning. This can include saving for a child’s college fund, or if you are planning to continue your own higher education.
Federally backed student loans can be a cost effective way to finance a college education. Even better is a college fund that accumulates interest until the the funds are needed.
A college fund is something that you can start today to prepare for the rapidly rising expense of a college education. Most states have a college foundation that provides additional information on saving for college, such as the College Foundation of North Carolina.
Paying Off Student Loans
Sometimes a student loan can put recent graduates in a bind financially. Even so, a student loan can be one of the easiest debts to manage and pay off.
Federally backed student loans generally have some of the lowest costs of borrowing. These loans are also very forgiving, allowing for deferred payments while you are in school and even briefly afterward. Even a forbearance is possible if you have trouble.
Student loans that go into default are another matter. You lose the generous benefits that you had when you were current.
Student loans generally cannot be included in a bankruptcy filing. They are not eligible for benefits through a debt management program either.
Our financial counselors consider these factors when discussing your financial situation. Together, we can help you evaluate your situation and determine appropriate courses of action.
