Avoid the Burden of Student Loan Debt for Your Kids

The Biden administration has already given more than 450,000 borrowers reason to think about that, after forgiving the debt for certain disabled borrowers and others who attended fraudulent colleges.
There are, however, more than 40 million people who are still saddled with loans. And although the U.S. Department of Education has announced it will be making changes to the public service loan forgiveness program, which excuses the debt of those who’ve worked for the government or nonprofits for a decade, there are still many Americans who must shoulder the burden of student loans.
It is possible to avoid mortgaging the next 10+ years of your life to pay for a college degree for kids or grandkids. There are options!

Use these tips to avoid the need for your children to be saddled with student loan debt.

1.    Plan early. A 529 college savings plan can avoid the need to take out student loans. Use this education calculator to work out how much you will need.

2.    Take a look at all types of scholarships. There are scholarships available for reasons other than financial need, exceptional intelligence, and athletics. Many scholarships are specific to a field of study. There are also scholarships available for ethnicity and character.

3.    Consider applying for SNAP. SNAP stands for Supplemental Nutrition and Assistance Program. In the past, this program was referred to as food stamps. The laws differ from state to state, but you may be able to qualify. If you do, you won’t have to borrow as much to feed yourself..

4.    Look overseas. It can be much less expensive to attend school outside of the U.S. Tuition is free for international students in a few countries.

5.    Work. Have you considered attending school on a part-time basis and working? You could also attend school for a year and work for a year. Many schools have employment opportunities for students. Certain majors have structured co-op opportunities.

6.    Attend junior or community college for your first two years. These educational options can be much less expensive than a full, 4-year program. Then, you can attend a university for your last two years and earn a degree from a prestigious program without the full expense.

7.    Join Uncle Sam. You’re probably familiar with the GI Bill. In addition, several other programs provide tuition assistance, reimbursement, or low-interest loans. Joining the military is another way to emancipate yourself from your parents. This option comes with the obvious obligation of military service.

The total amount of student loan debt in the U.S. is over $1.2 trillion. Your family need not fall prey to this debt.
“Student loan debt can be a serious burden for the next decade of your child’s life,” says Robert Cavanaugh, Senior Vice President of Investments at David Lerner Associates. “A 529 plan can avoid the need for taking out student loans for your children or grandchildren.”

Take a long-term perspective and plan now so that you avoid the burden of student loan debt.

IMPORTANT DISCLOSURES
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
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David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC.