Sixty-five percent of college seniors graduating from private or public college have accumulated student loan debt.1 That debt averages out to around $28,950 per graduate.2 And while student loan debt is a burden to any graduate, it can have a surprisingly negative effect on HENRYs, or those considered to be a high earner, not rich yet.
When you want to stash away some of your money, it’s likely you’ll turn to the account options provided by local banks and credit unions. While it’s common to open a checking and savings account for easy access to your cash, it’s important to consider all of your options - including money market accounts (MMA).
As many parents start ramping up their retirement planning efforts, their children are also preparing for an important next step in their lives: higher education. It may seem overwhelming to manage both at once, but it’s important to face some very hard decisions. If you’re thinking about tapping into your retirement accounts, ask yourself a few questions:
When you embark on your college career, there is a good chance that you may have to seek additional funds through the procurement of student loans to pay for tuition, expenses, and even living costs. When you request student loans, the loan company is likely to pay the tuition directly to the institution you have chosen and then issue to you any overages.
Emotions often run high the day any parent drops their child off at college for the first time. It’s an important moment for families and one that symbolizes the start of a child’s independence. But as a parent, grandparent or guardian, you want your child to set their newfound independence off on the right foot emotionally, physically and financially.
Each year, around 84 percent of college students obtain some form of financial aid.1 To receive financial aid from the government, all students must fill out the Free Application for Federal Student Aid (FAFSA). The FAFSA determines the financial needs of a student based on factors such as current family income and the family’s prior tax year’s income.
The biggest challenge for students and parents when planning for education are the financial costs; including tuition and academic expenses. It’s not just for college anymore – added to the tuition eligibility are K-12, private and religious schools. Funds can be used for four and two year colleges, trade schools, graduate programs and some international institutions.
For many people, helping to pay for their children’s or grandchildren’s education is one of their main financial goals. It’s admirable to want to put your wealth toward bettering the next generation.