Student Loan Help

What do you do with your tax return money, unexpected bonus, or $20 bucks Nana kicks you when you come to visit? Do you catch up on bills? Do you buy clothes? Do you go on an eating safari and hit all your favorite bakeries? My buddy Brian joked with me recently that he’d be getting back just barely enough from his government stimulus check to fill his gas tank once. I actually heard this week the national average may hit $4 per gallon by the summer, yikes! My southern friends have it right; saddle up and take your horse to work. I wish I could do that. In Boston that’s not a realistic option unfortunately. Although I suppose if I had to pick up after them like dog owners with a scoop and bag that would be an unpleasant “Jurassic like” experience.

What I do when I have a surplus of money is sock 60% of it away. I start a car payment fund, rainy day fund, or vacation fund. It’s amazing how fast that adds up. You can do the same thing with loose change too. It all adds up so quickly.

The other 40% I spend on me. I buy that golf shirt, take the Mrs. to dinner, or just buy an ice cream cone. Ah, life’s simple pleasures.

It’s really a balancing act of sorts. You’re living for today but planning for tomorrow. Spend too much money and you may end up on the streets if you lose your job. Spend too little and you’ll think you’re missing out while your friends get to have all the fun.

Once you find that healthy balance you’ll feel a lot better. Saving is nice, but you have to live too people. To quote Ferris Bueller, “Life move’s pretty fast. If you don’t stop and look around once and a while, you could miss it.”

I speak to parents every day who call me trying to figure out how they’re going to pay for college for their kin. It’s a heavy cross to bear. “Should we take a home equity line? What about the Parent Plus loan? Do you think I should just co-sign for a private student loan for my child and keep the loan in their name?” These are the most common questions I help them work thru.

From a students perspective they’re just trying to get to school and are less concerned with the financials. They don’t fully understand the financial ramifications that go along with the cost of education. Whether it’s $5,000 or $50,000 it doesn’t really matter to them; at least not while they’re in school. These serve as arbitrary numbers. But those numbers become their foe when it’s payback time.

The purpose of this blog is to introduce a 529 savings plan to you. This education savings plan is most useful to those parents having students several years away from college.

Here is a quick cliff note style overview for you.

- Every state has at least one 529 plan available.

- Two general types of 529 plans exist: prepaid programs and savings programs (prepaid tuition plans allow you to lock in future tuition rates at current prices while savings plan do not offer that same guarantee).

- Your investment grows tax-deferred, and distributions of the funds come out federally tax-free when you are paying for college.

- You are in control of the funds, and can even change the name of the recipient to another child or even yourself.

- 529 plans are viewed as a parental asset which is only assessed a maximum of 5.64% in determining a students Expected Family Contribution (EFC) on their FAFSA, opposed to a whopping 20% on non-529 assets that students hold.

As you can see 529 plans have great benefits and are a terrific way to save for your child’s college. I want you to save now and pay less later.  If you plant it - it will grow.

Student Loan Network serves hundreds of thousands of students from more than 6,000 colleges across the United States . However, we do see some states and colleges where we get more applications than others. If you are interested, here is a list of the popular states where we are making loans.

Michigan Student Loans

New York Student Loans

Pennsylvania Student Loans

Texas Student Loans

Arizona Student Loans

California Student Loans

Florida Student Loans

Illinois Student Loans

Iowa Student Loans

Massachusetts Student Loans

What do you consider your most important bill each month; mortgage, automobile, cell phone? We all have mountains of bills to pay, but the most important bill you will ever pay is the one to yourself. My Dad taught me that a long time ago. I want you to stay ahead in the game of life which is why I am passing this wisdom along to you. Those other bills are certainly important, but not as important as number one.

Think of life like a game of Monopoly. Sometimes you land on Go and collect that $200 while other times you get sent directly to jail (and no one looks good in pinstripes). And think about it, if you get sent to jail you can’t take that ride on Reading Railroad, visit St. Charles Place, or advance to Boardwalk. You’d be relegated to a passenger in the game of life – no fun!

My suggestion is to set an account aside and put money in each week or each month as you deem fit. You are far more important than any other bill that comes your way. No one is going to do this for you. You need to take action to make this happen. Remember, it’s not the denomination that is the important thing here, so don’t get discouraged by that, it’s the act and mindset behind it. As you get older you may be able to contribute more, but for now just start with a $1.

We are always going to owe money to someone, that’s just life, but owing money to yourself is an investment in you. Everyone else can take a number and get in line. 

Follow my simple but rich advice and you can’t go wrong. In fact, I’ll even save you at seat at the Boardwalk Cafe. The view is breathtaking.

Why spend today, what you can save tomorrow?

Have you ever been called a penny pincher? Have you ever been told you are tight with the wallet or are just plain cheap? If so, you’re probably getting the last laugh right about now. With the economy in a state of purgatory and the cost of gasoline and commodities on the rise that nest egg you saved yourself is coming in mighty handy these days I’m sure.

Anyone still around from the Great Depression Era knows how truly bad it can be, and is frugal beyond belief. They mastered the art of saving, unlike today’s generation. The only thing kids save nowadays is their game of Halo.

Well, Dr. Dave is writing you a prescription to be frugal and I want you to follow it to the letter. Now I know what you’re thinking, I can’t just stop spending money cold turkey. Actually, on a sidebar what does that metaphor even mean? I eat cold turkey everyday for lunch. I LITERALLY can’t stop cold turkey, I love it! Anyway, back to you. Take baby steps if you must. No excuses people!

Here are some excuses you’re probably scheming right now: All my friends go out on Friday night, I don’t want to be the only one. I deserve those pair of shoes; they’d look so good on me. I work hard and I want to play hard. My personal favorite – everyone’s doing it. The list of excuses is endless, but your bank account isn’t. I’m not saying become a hobbit, but it’s ok to tell your fiend, “I just don’t have it.”

You don’t need to keep up with the Jones’ to be cool. A penny saved is a penny earned (or at least ¾ of a penny earned with the current exchange rate). Don’t give into the peer pressure. Be your own person.

Next time someone calls you a penny pincher just smile back and say thank you, it’s good to see you recognize an intelligent person when you see one.