Where Does College Fit Into Your Financial Future?

financial future

Former college students rejoice when they receive the final billing statements from their student loan companies alerting them that the final payment has come due. After spending dozens of hours on the phone with customer service trying to get their student loan accounts credited properly, nothing could possibly be more joyous than being able to tell your loan servicer to take a hike. Unfortunately, finishing paying for your online social work masters degree doesn’t mean that you’re done with the student loan business. In fact, it likely indicates the exact opposite. If you have children or any younger relatives that depend on you, expect to be paying college tuition and student loan bills for a very, very long time.

Planning to Go Back to School?

After you have become an expert in your field, you might believe that your employer will automatically tell you what you have to do in order to land a higher paying position. And while you may be the most mature, experienced and seasoned worker at your company, there’s going to be a lot of new hires that have credentials so impressive that it makes you blush. If you can get past feeling intimidated by their educational accomplishments, this is a great opportunity for you to get access to some majorly beneficial inside information. Learn about online MSW programs, employer tuition reimbursement plans and every other option you can use to go back to school on your terms.

Funding Your Kids’ College Education

For those who have survived the first round of repaying student loans, having a child that plans on also going to college is a second opportunity for you to get things right. First and foremost, student loans from private lenders are credit based. If you take the time to increase your credit score just before your children reach college age, you are likely to receive a better interest rate. There’s not always a lot of time to save for college for your children, particularly if you have your own student loans to pay off, so it is a good idea to put as much away as you can, when you can. You can explain to your children that college loans are not free money simply by showing them a printout of how much you repaid your student loan company.

Helping Grandchildren Pay Tuition

People lucky enough to repay their college debts, assist their children as they attend college, and even do what they can to get their grandchildren an education have enough experience to know what’s what. At this age, it can be a huge burden to take out student loans. However, this is right around the time your IRA should be maturing, or your pension funds become payable. Feel free to help your grandchildren out as much as you can, just be sure that you write a check out directly to your grand kid’s school if you want to ensure that your money makes it to the right place.

Do your current financial plans include planning to pay for college for future generations of your family? College funds are smart, logical, financial vehicles that you can use to secure monies for your children and grandchildren, but there are a lot of people that are too worried about their own college student loans to do so. It may seem like an endless cycle, but helping both yourself and your loved ones become highly educated individuals is anything but a dead end.

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