Take control of student loans before they take control of you and your family
By: Darrell Castle
Student loan debt is a prison for the whole family, not just the students.
Let me tell you a story that I’ve seen play out a few times –
Rachel’s parents save no money for her college education, assuming their present earnings will cover the expenses. Then, Rachel gets accepted into an expensive private school offering no financial aid and chooses it over the affordable public school offering her academic scholarships.
Then, what do the parents do?
They sign for Rachel’s student loans, making her promise she’ll repay them after she graduates (hint- they hardly ever do).
Rachel then can’t afford her high student loan payments, so she moves back in with her parents. And at this time, the only job offers Rachel’s getting won’t pay her enough to cover her student loan payments, even without paying her rent.
Fast-forward 10 years, Rachel’s parent’s are stuck playing catch-up preparing for THEIR OWN post-work life because they were helping Rachel pay off HER student loans so late in their life.
So, I want to offer you eight solutions for avoiding this kind of situation:
- Prepare your kids for financial responsibility.
- Cover in college expenses only what you can cover in current income.
- Never EVER co-sign a student loan.
- What’s wrong with the kids working and sharing the expense with what you earn?
- Only pay if they go to colleges you can afford.
- Only pay if they can show you return on investment figures for their chosen majors.
- Work hard and save for their college educations and teach them to do the same.
- Budget with them as they grow.
I hope you take these tips to heart and don’t find yourself like Rachel’s parents, preparing for your retirement so late in life.
And just remember, if you’re in debt and can’t find your way out, a bankruptcy attorney is here to help you. Student loans can be included in a Chapter 13 bankruptcy. A bankruptcy allows you to either delay or reduce your payment obligations.
You need a bankruptcy attorney that you can get to know and trust; one who’ll walk and talk you through the process. Darrell Castle & Associates has received multiple Client Distinction Awards from Martindale-Hubbel for client satisfaction and will offer you just that.
We also have access to a great credit restoration program called 7 Steps to a 720 that will teach you how to re-establish and rebuild your credit the right way after a bankruptcy. Ask us about it!
If you’re considering filing for bankruptcy or if you have any questions, call us at (901) 327-2100 to schedule a FREE consultation, or fill out one of the contact forms on this page.