4 Reasons to Plan Your Child's College Funding Wisely
Avoiding the Debt Trap Can Be Just as Important as Getting a Degree, Says Financial Specialist
July 16, 2013 (www.investorideas.com newswire) Generation after generation, parents have taught their children to prepare for college now, which often means in elementary school or even earlier. These days, financial experts like John McDonough are giving parents the same advice.
"Can you afford the college that will give them the best chance in life? Will paying for their education force you to have to work well into your golden years? These are the questions I ask parents every day," says McDonough, CEO of Studemont Group College Funding Solutions, CollegeFundingFreedom.com, which offers advice for parents worrying about how to pay for their child's education.
"Many parents really don't know how to begin answering these questions; they are afraid of walking into a financial situation that they won't be able to safely walk out of. But the alternative saddling their children with debt well into their 30s and 40s is not an appealing alternative."
McDonough reviews four disturbing trends in the challenge of paying for a college education:
- The net worth of today's 30-somethings: Adults in their 30s have 21 percent less net worth than 30-somethings 30 years ago, according to a new Urban Institute report. Why? Much of it has to do with high-interest student loans and credit card debt. The return on investment of a college education is excellent college grads earn 84 percent more than those with only a high school diploma, according to Georgetown 's Center on Education and the Workforce. But paying off that investment without outside help is exceedingly burdensome for a graduate.
- Student loan debt is even greater than credit card debt: That's right topping all Americans who have made poor decisions with their credit cards are ambitious high school graduates, whose collective student load debt shoots past $1 trillion! More important than this being a crucial social epidemic, it's potentially a very real problem for your child. President Obama scored some political points in identifying with most Americans when he said his student load debt was paid off only after he was elected to the U.S. Senate. Two-thirds of students leave college with some form of debt, according to the Federal Reserve Bank.
- Fluctuating interest rates: Recent controversy over federal Stafford loans interest rates adds to the insecurity of borrowing as a college financing strategy. Given the unpredictability of Congress, which allowed the U.S, credit rating to drop while standing on political principles, one can't reliably predict whether interest rates will rise or fall.
- Your children cannot refinance their loans: While a borrower who has racked up tens of thousands of dollars in gambling debt can refinance their payments, student loans remain at fixed rates. In collecting money on student loans, there is no statute of limitation, and today it's very common the norm, actually for student loan holders to take nearly two decades to pay off their debt. With the annual average cost of public universities exceeding $22,000 per year, and the same often surpassing $50,000 at private universities, it's no surprise.
About John McDonough
John McDonough is the managing member at Studemont Group, which is primarily focused on helping retirees gain peace of mind with unique market rescue and recovery programs. He is also founder, president and CEO of Studemont Group College Funding Solutions. His experience in the financial services industry includes managing partner at Granite Harbor Advisors in Houston and divisional vice president of AXA Equitable/AXA Advisors, the third largest insurance company in the world. McDonough is a member of the prestigious Forum 400, a Top of the Table qualifier for Million Dollar Round Table, an active member in National Association of Insurance and Financial Advisors and Society of Financial Service Professionals. He is an active board member for First Financial Resources, LLC. He has completed the course work to sit for the Certified Financial Planner® professional designation exam from Rice University.
If you would like to run the above article, please feel free to do so. I am able to provide images if you would like some to accompany it. If you're interested in interviewing John McDonough or having him write an exclusive article for you, let me know and I'll gladly work out details.
National Print Campaign Manager
News and Experts
3748 Turman Loop #101
Wesley Chapel , FL 33544
Tel: 727-443-7115, Extension 207
Ginny Grimsley: 727-443-7115 ext 207 Ginny@newsandexperts.com
This news is published on the Investorideas.com Newswire and its syndicated partner network
Get free news alerts:
Sign up here
Published at the Investorideas.com Newswire - Big ideas for Global Investors
Disclaimer/ Disclosure:The Investorideas.com newswire is a third party publisher of news as well as creates original content as a news source. Original content created by investor ideas is protected by copyright laws other than syndication rights. Investorideas is a news source on Google news and global syndication partners. Our site does not make recommendations for purchases or sale of stocks or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated by featured companies, news submissions and advertising. Contact each company directly for press release questions. Disclosure is posted on each release if required but otherwise the news was not compensated for and is published for the sole interest of our readers.
BC Residents and Investor Disclaimer: Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: http://www.bcsc.bc.ca/release.aspx?id=6894. Global investors must adhere to regulations of each country.