Let’s Talk... Paying for College!
Let’s talk… paying for college!
It’s graduation time. Your child just finished high school and the future looks bright as they head to their dream school. Here are some things to think of to set your child up for success.
- Qualified educational expenses come out from your 529 plan tax-free. Remember to gather documentation of what you paid for, so that you can get reimbursed from your student’s 529 plan, if you have one.
- Don’t encourage your child to take on an exorbitant amount of debt for a degree that won’t earn enough to cover the interest payments. I know this is a touchy subject, but student loan debt isn’t dischargeable in bankruptcy, so if they sign a loan for $300k for a degree that has an average salary of $36k a year, they are being set up for failure early in their career.
- Help your child explore other options to reduce the cost. One option is going to a community college for the first 2 years before transferring to their dream school. They will save money, and when they transfer and finish at a prestigious university, their degree is the same as someone who paid 4 years of tuition.
In the end, remember all the effort you’ve put in to help your child learn good habits growing up will help them make wise financial choices in college and their life!
The opinions voiced in this material are for general information only and not intended to provide specific advice or recommendations for any individual.
