Season 3

College tuitions! How to fill the funding gap

Episode Notes

Right now, millions of high school seniors are receiving acceptance letters and financial aid offers from colleges and universities. These offers usually include a combination of merit-based scholarships and grants, student loans, work study grants, and private parent loans. In past years, it was challenging to convince many schools to increase this aid. But according to author and college planning expert Ron Lieber, with the COVID-19 crisis reducing the number of applicants to most schools, parents are now in a better position to diplomatically ask for better offers. But this can be a confusing process. Parents need to negotiate scholarships and grants with the Admissions office, and loans and work study grants with the Financial Aid office. When meeting with these officials, parents should feel free to ask them to match or exceed the more generous financial aid offers their children have received from other schools. Even after students have accepted an offer, they should seek additional money by applying online for a share of the billions of dollars available through thousands of private grants and scholarships. Even with all this aid, parents’ share of their children’s annual college costs will still be significant. They should try to borrow as little as possible, particularly through private parent loans whose payback periods could last a decade or more. This is particularly important for parents who are approaching retirement age, since some of their Social Security benefits may be garnished if they’re unable to make monthly payments on their own. For parents with younger children, contributing to a 529 College Savings Plan as early as possible can give them a head start on building a reserve to help pay for future educational costs. Grandparents, too, can help by contributing to these plans or giving up to $15,000 a year per child without gift tax implications. The most important thing is to not let your fear about your children’s future or your guilt about what you’re able to afford keep you from making the right financial decisions.

For further research: 

Recent Podcasts

Season 6
2022 Year-End Tax Planning Tips

Show Episode Notes

Terry, Pam and Richard share their best end-of-the-year tax moves to make right now.

For further research:

Season 8
Are alternative investments right for you?

Show Episode Notes

With the stock and bond markets delivering lousy returns this year, some investors are wondering whether to add so-called alternative investments to their portfolios. In this episode, Pam, Terry and Richard discuss the risks of investing directly in unregulated asset classes like gold, real estate, commodities and even cryptocurrency and suggest ways that investors may be able to use publicly traded securities to gain indirect exposure to these alternative asset classes with lower risk.

 

Show Episode Notes

Podcast Hosts

Pam Krueger

Pam Krueger

Terry Savage

Terry Savage

Richard-Eisenberg

Richard Eisenberg

Stay Tuned Into Friends Talk Money

Copyright © 2021 FriendsTalkMoney.org