The title of this entry doesn’t have anything to do with the weather, or a book, or even a movie. What I’m talking about is even scarier for most families than the real The Perfect Storm, and it affects many thousands more people! It affects every family facing the prospect of Paying for College in the next few years!
Rising College Costs, Falling Housing Values, Restricted Loan Availability, Reduced Savings Plan Values, Hazy Employment Figures
What does this all mean?
The Perfect Storm for college costs, that’s what it means. And, I may have left something out – there are other factors that are in play, but they are more complex and harder to see a direct connection.
Do you have a plan to pay for college? Do you STILL have a plan to pay for college? I hope you do, but I’m afraid that many people are wondering if their plan is still good….if it will still work.
Children going to college in the next 1-5 years? You NEED a plan to ensure you have money for college.
Rising College Costs – 6 % + increase in tuition, see my last post
Falling Housing Values – means less equity to borrow against for anyone counting on home equity loans
Restricted Loan Availability – most student loan suppliers, including Sallie Mae, are loaning less and charging higher rates
Reduced Savings Plan Values – 529 and other plans are often invested in stocks and mutuals
Hazy Employment Figures – unemployment continues to climb, salaries stagnate
Family savings plans, like 529 and others, have all dropped in value so they won’t be going as far to pay for college expenses.
Loans are tight now and getting tighter, a quick check of rates at Sallie Mae showed private loans up as high as 15% +, and many options have switched to using the LIBOR as their index! Yikes!
OMG, as my daughters might say. What to do?!?
PLAN, PLAN, PLAN! There are definitely ways to be successful in paying for college, even in these trying times. Families need a plan, it’s unlikely that people will ‘accidentally’ pay for college in the next few years!
Assess your situation and develop a plan. Get professional help if you need it.
Ask yourself the hard questions about college savings, loan options, school options, home equity, employment stability….
Everyone can develop a winning plan, if they work at it. Developing a successful plan to go to college and pay for it it a Team Sport!
