As the cost of attending college continues to increase, so does the student loan debt level. According to a report by the Consumer Financial Protection Bureau, the average outstanding balance is now $34,144. Plus, the percentage of borrowers owing $50,000 or more has more than tripled in the last 10 years.
For most folks, a college education continues to be a great investment due to the increased earnings over the person’s lifetime. However, with the college cost being the second-largest expense most of us have, reducing (or eliminating) the student loan debt becomes a high priority.
Unlike past generations when students were encouraged to find ways to fund their college education, today’s students are encouraged to use debt to finance their education. Often, these students are unaware of factors related to the debt that will impact their lives for many years:
- Many don’t realize the number of loans and the total amount of debt they are accumulating until they graduate and start receiving the notices of payment due.
- Some are unaware of the terms of their loans such as the interest rate, and that the unpaid interest may be added to the principal amount of their loan.
Current and future college students and their families can benefit from education on:
- How to minimize the cost of college.
- Maximizing scholarships.
- Using tax advantaged strategies to pay for college.
- Getting extended family members involved.
Crystal Financial Solutions will be offering a workshop in September to help educate current and future college students and their families on ways to reduce the amount of student loan debt they will incur during their college years. For more information or to register, watch our Facebook page or email [email protected].Judith Ackland has more than 26 years of experience in accountancy and financial planning, including seventeen years as a CFO of a diverse business. She started Crystal Financial in 2010 to help a wide array of individuals, families, and business owners better understand their finances and how good financial management could help them achieve their goals. Judith has an MA in Professional Accountancy from the University of Nebraska at Lincoln as well as a Certified Public Accountant Certificate and a Certified Financial Planner designation.