What is one of the hottest and most controversial political topics of today?
It is proposed forgiveness of college debt.
This letter is not about politics, it’s about finances and decision-making and that’s why I am talking about it.
Americans owe nearly $1.75 trillion in student loan debt, spread out among about 46 million borrowers. That’s about $440 billion more than the total U.S. auto loan debt.
So why is this such a hot topic today? Because so many students and parents regret taking on such high college loans. This is a decision that is not forced onto anyone, but one that people make for themselves. The decisions that we make on our choices to go to specific schools or to take on student loans are ours – there is no outside force that requires us to go to expensive schools if we don’t have the cash to do so.
If we have plenty of money and have our retirement goals all set, then no problem, we have the right to spend the money on whatever we want and have nobody to answer to. If not, then let’s remember that there are plenty of schools out there that might not require huge debt after college and will give our kids the same degree necessary to put on their resumes’ to give them great futures.
I often hear people say, “Yes but THAT school will get my kid a much better future and easily be able to pay down the debt” Most families tell me that this is very seldom true in retrospect when you are making the payments.
As a Financial Advisor, I am always encouraging parents to make wise financial decisions and think through how they use the College Planning opportunity as a teachable moment and life lesson for their kids.
This is a process where we can make decisions in advance. Do we (or our kids) want to be in the camp that has taken on a huge amount of debt with payments 10-20 years into the future? Does that mean that our kids would then be in another group in the future seeking college loan forgiveness, or not be able to save or purchase the house they want because they are paying student loans?
Perhaps we could be helping our family to make decisions now that could still give them a great future but without the huge burden that so many find themselves shackled with today.
If you would like to have a discussion on how you can make wise decisions for Retirement Planning and College Planning for your family, please don’t hesitate to contact me to set up a no-cost consultation.
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What is one of the biggest mistakes that most people make after reading this? They ASSUME that they cannot be helped. We have no idea whether we can help a family or not until we have a personal discussion with them to see what their unique circumstances are and then develop a personalized plan for their family.
Please feel free to contact me at 714-813-1703 at davec@collegeplanningamerica.com if you would like to discuss how we can help you with your family’s plan for Retirement or for College, either in person, over the phone, or on Zoom
About Dave
Dave Coen is a Retirement Income Certified Professional (RICP®) and Financial Advisor with SageView Advisory, and CEO of College Planning America. Along with his retirement financial industry experience, he is a College Planning Specialist. He works closely with individuals and families to provide comprehensive financial planning that addresses all elements of their financial picture. Learn more by connecting with Dave on LinkedIn.
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