High Education Vs. Out Of State Tuition

While this is often true, it can create problems when a student does not have the money to pay for a quality education. The cost of college has risen an estimated 250-500% over the last 30 years while consumer price index has only increased by 115 percent during the same time frame (White, 2015; Eskow, 2014). The amount of student loan debt is increasing, along with the cost of college. The income of many young people today cannot keep up with the rising costs of college education and housing. Part of the problem with student loan debt begins when students choose to attend a college that exceeds their financial resources and rely on federal student loans as well as private student loans to make up the difference. Eskow found that even public colleges and universities are becoming difficult to pay for without taking out student loans often averaging $30,000 for tuition, room, and board (2014). Since many people do not have enough money to cover college education expenses, they rely on student loans, both federal and private, to fill the gap. Financial advisor Ramsey stated that often the loans students take out pay “for an off-campus standard of living, and no debt was needed to get the degree” (2013). “The Project on Student Debt reported in 2013 over ⅔ graduating seniors were leaving school with student loans” averaging approximately $28,400 (White, 2015). Taking on almost $30,000 in debt before even starting a career can have a significant impact. It can force people to get a job just to pay off the student loans, not based on what they got an education for prepared for or what they studied. This also can cause a setback in future plans, having to delay many adult milestones due to lack of

With the cost of attending even public state schools starting at $20,000 a year, most college graduates will leave with student loan debt. This inevitable debt can already be immense and feel crushing. Credit card debt accumulated in high school is not forgiven by the bank when a student graduates to college. Why would you let your teenager needlessly make their future financial situation worse? Stress surrounding student loan debt has claimed lives. In Oklahoma, two colleges students committed suicide over their inability to pay their debts. They were found dead with their bills beside

However that’s an argument against allowing kids attend college, not against their future earning to get a degree and earn a wage. “Grants and loans are the major forms of federal financial aid for degree-seeking undergraduate students,” (NCES.) Tuition has been a popular choice of popular, private student loan that gives an opportunity for creditworthy students to borrow up to $40 thousand dollars per year to cover college expenses only to drag them towards decades of debts as tuition is rising in public colleges and funding cuts to leave students deeper in debt. Even so, this brings us back to the main point, that loans are voluntary and college students certainly do understand what they are getting themselves into when taking out loans. If federal student loans and traditional financial aid programs have been considered, then a Tuition loan would be the best answer for college students considering the five repayment plans offered by the loan forgiveness program of 2015.

In the U.S. students are encouraged to earn a college degree, but the cost of an education turns many away. “Driven by the allure of a decent salary with a college degree, Americans borrowed to go to school. Outstanding student debt doubled from 2005 to 2010, and by 2012 total student debt in the U.S. economy surpassed $1 trillion” (Mian, Sufi 167). There are plenty of opportunities to obtain funds for college, including one of the most common, student loans. A student loan is defined as “a common way to fund education, specifically college and graduate school, and they provide educational opportunities that you otherwise may not be able to afford” (Barr). Student debt is at an all-time high in America. Over half of all lower income

According to William B. Bradshaw, “that figure is beyond comprehension.” As of January 2, 2018, there is $1.48 trillion in total United States student loan debt, 44.2 million Americans with student loan debt, student loan delinquency rate of 11.2%, and average monthly student loan payment is $351 (A Look at the Shocking Student Loan Debt Statistics for 2018). About half of the students that graduated in 1993-94 with a bachelor’s degree graduated with debt, averaging a little more than $10,000. In 2016, more than two-thirds of college graduates graduated with debt, and their average debt at graduation was about $35,000, tripling in two decades

The problem this debt is that “The cost of higher education is increasing at an alarming rate, particularly at four-year public institutions. According to the College Board (2009), public colleges costs are rising faster than private institutions, and undergraduate students are facing new pressure to pay educational expenses.” (SOLIS DURBAND 1). This can be a real problem for students who choose to take student loans to pay for college

up. One of the reasons is that parents don’t really look into making a college fund. Most

The earlier you open your account, the more interest you will earn, and the less temptation you will have to spend your savings. Ideally you need an account where it is easy to put money in, less easy to take it out, and has a strong and steady long term rate of return. It may be helpful to work with a financial planner to determine the best account for you. One popular option is a 529 plan, or "an education savings plan operated by a state or educational institution designed to help families set aside funds for future college costs.”2 Another option is a Coverdell Education Savings Account, which is similar to a 529 plan but can also be used for primary and secondary school. Plans vary by state, but typically there are no residency requirements and funds from any plan can be used at any eligible school. A third option is a Roth IRA. These are primarily used as retirement accounts, but can sometimes be used for qualified educational expenses. And if you decide not to finish school, the money is still available for your retirement later.3 In these investment accounts, your earning potential is higher, but so is the risk. Once your account is established, consider asking for donations to your college savings account in lieu of gifts from friends and

Since not enough money is being put aside for college, people will apply for a scholarship or a loan

A 529 account is the go-to place for saving for kids’ college. But before you commit to this type of plan, you should take a closer look at the details so you know whether it’s really a good choice for you. While this is a popular savings vehicle for saving for college, it’s not perfect. First, let’s review what a 529 plan is.

If you have any desire to pay for any, or all of your children’s college costs, it is best to start saving early. For example, a child currently 2 years old, with no 529 plan yet established, who will go to 4 years of public, in-state school, will likely need almost $240,000 to pay for their college! If you start funding a 529 plan now, you would need to save a little more than $600 monthly to pay for the entire 4 years of college (this includes anticipated college cost increases of 5% annually and with 6% after tax earnings each year in your college savings fund). A private school for 4 years could be double these

the process for loans is complicated and results in huge post education debt, the grant

loans. Parents have the option to take out a loan on the students behalf, this is called

This seems like a daunting task that is not achievable. With solid goals and discipline you can become debt free, have three to six months of money in savings, and be able to fully fund your children’s college fund. Additionally, you will be able to use this experience to teach your children how to properly use money and be financially independent. I look forward to working with you to accomplish your financial goals. I will contact you at the end of the

In 2016, an accumulation of almost 1.4 trillion dollars of student loan debt was outstanding in America (Kess). Students from all over the nation, and the world for that matter, are going to higher education without the financial ability to do so. One of the few options for financial aid available to these prospective college students is to take out student loans to pay for the high tuition of most universities and colleges. While these loans are a modality for attending higher education, they often come with strings. Along with being several thousand dollars in debt, interest also accumulates into the total amount of the owed financial total. Until these loans are repaid the interest keep accumulating and the debt grows. With debt still affecting students negatively well after they finish their higher education, the price of college tuition should be abated.