“The Student Loan Debt Reality in America”
While it might not be visibly apparent in the bull market economy of the last decade, the reality behind the scenes is that student loan debt is now the second largest outstanding debt that American households have behind their mortgages. Yes, even credit card debt has been left in the dust as the overall student loan burden is now above $1.6 Trillion dollars! Yes, Trillion with a “T”. Perhaps even more worrying is that 20% of these borrowers are either delinquent or in default on their loans (https://studentaid.ed.gov/sa/about/data-center/student/portfolio! While it seems like the type of issue that you just want to ignore and hope that it goes away, the best thing you or a family can do is face the issue head on. At Van Gelder Financial we can help with this overwhelming problem in the following ways:
Prepare BEFORE College
Individuals and families are looking to start planning for college and want to know the best spots to begin saving for this. We help to review their current situation and provide recommendations which usually are In the following areas:
- 529 Plans
- ESA’s (Educational Savings Accounts)
- UTMA (Unified transfer to Minor Account)
- UGMA (Unified Gift to Minor Account)
- Roth IRA (Utilizing a withdrawal for qualified educational expenses)
Assist AFTER College
Then there are those who have already attended undergraduate and potentially post graduate education facilities and are now working in their field of study. The student loans that they are now paying for can be overwhelming and we help them to refine and establish their goals in the following areas:
- Establish and affordable monthly payment
- Minimize the total cost of their debt over time
- Restore eligibility for federal student loan aid
- Improve their credit report and credit score
- Qualify for PSLF (Public Service Loan Forgiveness) If applicable
- Understand when to reduce debt vs. save for their future
Whatever you do, don’t ignore the issue. Think and plan ahead if you’re blessed with the time to do so. If you are already knee deep in the issue, please reach out to a professional who can help!
May 10th, 2019