Mass. financial advisor discusses saving for college education

Massachusetts financial advisor discusses saving for tuition and paying off student loans



>> FIVE ON YOUR MONEY. THIS MORNING, PAYING FOR THAT EE COLLEGE DEGREE >> COLLEGES AND UNIVERSITIES INCREASE TUITION FEES, MAKING THIS DREAM A LITTLE ESSENTIAL. HERE’S WHAT WAS TALKING ABOUT. BOSTON UNIVERSITY HAS ANNOUNCED ITS BIGGEST TUITION INCREASE IN 14 YEARS. BOSTON COLLEGE INCREASES TOTAL COST BY MORE THAN 3.5%. FINANCIAL ADVISOR PAUL LANE OF THE ARMSTRONG ADVISORY GROUP IS NOW JOINING US. PAUL, THANK YOU VERY MUCH FOR JOINING US. WHAT DO YOU TELL PARENTS ABOUT SAVING FOR COLLEGE EDUCATION FOR THEIR CHILD? >> REALLY WHAT YOU WANT TO DO IS SAVE EARLY AND OFTEN. 529s ARE A GOOD WAY TO SAVE FOR YOUR CHILD’S COLLEGE. STARTING AS EARLY AS POSSIBLE IS THE BEST WAY TO GO. I WOULD EMPHASIZE THAT THE MOST POWERFUL FORCE IN THE WORLD IS – EINEISTN SAID THE MOST POWERFUL FORCE IN THE WORLD IS COMPOUND INTEREST. >> BECAUSE IF YOUR CLDHI IS A FEW YEARS AWAY FROM COLLEGE, WHAT CAN YOU DO? >> THE LESS TIME THERE IS, THE MORE CONSERVATIVE YOU WANT TO BE WITH YOUR MONEY. I WOULD HATE TO TELL SOMEBODY TO PUT $10,000 ON THE MARKET THEN IT WILL DROP 10% TO THEN SUDDENLY $8500. THE CLOSER YOUR CHILD IS TO COLLEGE, THE MORE CONSERVATIVE YOU WANT TO BE WITH MONEY, AND THE FURTHER, THE MORE AGGRESSIVE YOU CAN BE. >> IT’S A HARD PILL TO SWALLOW THAT A COLLEGE DEGERE WITHIN SEVERAL YEARS COULD BE NEARLY $500,000. ARE THERE ANY TIPS TO AVOID PAYING THE FULL COST OR ARE YOU STUCK? >> MOST TIMES YOU WILL BE ON ETH HOOK BUT BE SURE TO EXPLORE SCHOLARSHIP OPPORTUNITIES THE COMMUNITY MAY HAVE OR JUST IN THE GREATER WORLD. THERE ARE MANY SCHOLARSHIPS. FOR MOST, WITH COLLEGES LIKE BOSTON COLLEGE CHARGED $80,000, THIS IS VERY CONCERNING. SO THE EARLIER YOU CAN SAVE, THE BETTER, BUT ALSO LOOKING AT LOAN OPTIONS AND SCHOLARSHIPS IS A GOOD WAY TO GO. >> THIS IS ALSO A FLUL TIME JOB, COMPLETING THIS FORM. THE OUTSTANDING FEDERAL STUDENT LOAN DEBT IN THIS COUNTRY IS ABOUT $1.6 BILLION. HOW DO YOU HELP PEOPLE MANAGE THE COST OF COLLEGE AFTER THEY HAVE TAKEN THESE LOANS? >> YOU WANT TO BE CAREFUL OF THE BORROWING PERIODS YOU TAKE. UNDERSTA TNDHE INTEREST RATE YOU ARE CHARGED. WE UNDERSTAND THAT INTEREST RATES HAVE INCREASE RECENTLY. WE ARE IN A FLINATIORYNA PERIOD, SO WE WANT TO CONSIDER REFINANCING THOSE TO REDUCE INTEREST RATES, AND UNDERSTAND PAYMENTS YOU CAN MAKE ON A MONTHLY BASIS. UNDERSTAND YOUR DEBT EXPOSURE. AVERAGE STUDENT LOAN BALANCES ARE INCREDIBLY CONCERNING. >> PAUL LANE DE

Massachusetts financial advisor discusses saving for tuition and paying off student loans

Boston University has announced its largest tuition hike in 14 years, while Boston College is increasing its total tuition by more than 3.5%.

Boston University has announced its largest tuition hike in 14 years, while Boston College is increasing its total tuition by more than 3.5%.

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