Ok, today we’re going to talk about how to keep your kids’ out of debt…
The last time I checked, the average student’s debt is currently almost $30,000, and it’ll be even higher by the time your kids graduate!
The truth is most young people and often their parents can’t afford that kind of debt, so it ends up damaging their credit rating and ability to buy a house and raise a family.
Of course, the best way to prevent such problems is to avoid massive student debt in the first place.
So here are 5 tips to avoid student loan debt:
1. Think return on investment
– Choose a program you like, but also focus on what the job prospects are and how much they pay. An expensive degree doesn’t make sense if you end up earning minimum wage.
2. Avoid non-government student loans
– Even government loans can lead to major debt problems. But when you get into private loans, the interest rates are usually much higher and there’s less repayment flexibility.
3. Apply for every scholarship and grant you find
– Even if your marks weren’t fabulous and your parents aren’t poor, you may still qualify for aid. Some scholarships are based on volunteerism, community of interest, non-academic skills, etc.
4. Find a school that’s looking for someone like you
– Each school has its own selection criteria, based on student talents, interests, background, needs, etc.
– Finding the one school that really wants you can result in reduced fees, scholarships, and other perks.
5. Smart mortgage strategies
– You can also use your mortgage to help fund education. You can free up money for your yearly retirement contribution by taking advantage of many mortgage lenders’ “skip a payment” feature. Or when the time comes, you can do an equity take out to cover tuition fees so you end up paying affordable mortgage rates instead of expensive consumer loan rates.
The bottom line is to make student loans your absolute last resort, even if that means working for a year before going to school, or taking a part-time job while you’re learning.
For more information on how to use your home equity to fund your kids education, call us today:
For Vancouver Mortgage Broker related inquiries ~ 604 628 5040.
For Vancouver Luxury Realtor related inquiries ~ 604 566 8968.
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