Colleges Today

Consider Different Ways to Invest for College Education

With the average cost of college level education rising approximately 6% every year, what is the best way to have the money for college exepnses when you need it? We can easily help you with different ways to invest for college education.

In fact, only 40% of students graduate in four (4) years. That means that 60% of students are taking five (5) years to complete their education.

It’s very important to plan for this major expense well in advance. On average, it costs over $6,000 per year to attend a state college. And if you attend an out-of-state college full time, there is a sur-charge of over $10,000. Private colleges can run well over $22,000 per year.

There are actually several ways to pay for your education or provide financing your child’s education:

* You can invest your money in the stock market or savings account. However, this can result in hefty tax payments.

* You can hope your child has the ability to obtain a full scholarship.

* You can take a second job when the time comes…or have the student take a part time job to help with expenses. But consider the longer time frame to graduate…and also the fact that there is a higher drop-out rate with students who have to work.

* Or you could have your child finance his/her education with student loans. But, this leaves them with a huge debt load when they are trying to start their new adult life.

Let’s consider a a couple of different ways to save up for those education expenses!

Let me explain how to have the money for college at your fingertips when you need it. Just purchase a rental property with a 15-year mortgage? I’ll use a $125,000 property for our example:

Equity will build! Even if there is no appreciation in value, you will still have this $125,000 property paid for in 15 years. Plenty for the finances needed for college.

But let’s run some figures on a modest 5% increase per year in property values. In this case, your property will more than double in 15 years. Your $125,000 investment could be worth over $250,000 when you’re ready to pay for college.

And you don’t even have to sell it! Here’s a way to take your money out of this property without paying tax on it. Simply re-finance it. A re-finance is not taxable income!!

What a great way to plan for college! You will have had renters to pay the mortgage payment…and if you re-finance for college expenses, you will still have renters to pay for the new mortgage payment.

Even with refinancing for a higher amount – consider that because the property has increased in value – so has the potential rental income!

About the Author

Pam Rumley is a veteran real estate broker in the Nashville, TN area. She is a true Exclusive Buyer’s Agent. There is never a conflict of interest regarding your real estate transaction. You can be assured of receiving 100% of her attention and loyalty – 100% of the time.

For more information, visit her comprehensive website, www.NashvilleRealEstateAuthority.com

Investing for Education – Education Savings Accounts

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I need an alternative student loan to pay for what the federal, perkins, and standford loans didn’t cover?

I am applying by myself because i have no kind of credit worthy co signer and i have no credit history. I am also a undergraduate in dentistry so i really need the extra money. Can anyone help me please?

try to apply for a PEL grant. its a federal grant , Im not sure how much you will be able to get but you dont have to pay it back. they are very easy to obtain.

Student Loans : About Federal Student Loans

Trends in undergraduate borrowing federal student loans in 1989-90, 1992-93, and 1995-96 (SuDoc ED 1.328/5:UN 2/7) …

Do you think I will receive my stimulus check?

Financial hardship forced us to defer payments on my husband’s student loans. We didn’t know that we had defaulted since we thought that the forbearance paperwork went through. We learned the hard way that you only get a couple deferments/forbearances — then you need to start repaying. They took our tax refund check this year which reduced the debt by 40%, we were told that from this point forward all tax returns would be applied to his student loan debt (regardless of whether or not he was on a payment plan). We were contacted by a collection agency & told that he was accepted into a “2nd chance program” to rehab the loan (that way he would be back in good standing & will receive future tax return checks). When we asked about the Stimulus check she said that we should receive it & it will not be applied to his debt (like our tax return check earlier this year). Anyone else in this situation? Do you think we’ll get our Stimulus check?

I really don’t understand the first two answers. I went through the same thing about a year ago. I was accepted into a student loan rehabilitation program that allowed me to pay off my student loans and get out of default. After nine months of paying faithfully, I received a letter that I was out of default and that the IRS had been contacted to not take anymore of my tax returns. Your program probably works in the same way. Once you default on a loan, you have to prove that you are willing to pay off the debt. I find it highly doubtful that they are going to automatically pull these lons out of default. Many of these programs have a minimum period in which you have to pay for a certain amount of time in order to get your loan out of default. They also have to contact the IRS, and nyou should receive a letter from the IRS stating that they will no longer be applying your refunds to the federal debt.

With that being said, according to the IRS website, the following is said regarding unpaid student loans.

Your payment may be less than the maximum for one or more of the following reasons:

You are single and your net income tax liability is less than $600. If you file Form 1040 net income tax liability is the amount shown on Line 57, plus the amount on Line 52.
You are married and your net income tax liability is less than $1,200.
You are single and your adjusted gross income (AGI) is more than $75,000. On Form 1040, AGI is the amount on Line 37.
You are married filing a joint return and your AGI is more than $150,000.
You owe back taxes.
You have non-tax federal debts such as unpaid student loans or child-support obligations.

So according to this, then no, you will not receive a stimulus check. For your sake, I sincerely hope that I’m wrong. However, I find it doubtful that the IRS has been contacted regarding your “rehabilitated loan” (it usually takes, I believe, 6 weeks) so I would not get my hopes up.

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