Wealth-building for Gen Y-ers

Money Magazine's 101 Ways to Build Wealth offers valuable financial tips for each stage of your life.  Listed below are their bits of advice for 25- to 34-year-olds.  To read the full article for more details, click here.   

1)  Start saving for retirement now.

2)  Favor cash-rich stocks.

3)  Add microcap stocks for growth.

4)  Build your career.

5)  Play the numbers.

6)  Get smarter about your money.

7)  Get with the program.

8)  Watch what you buy.

9)  Build your credit score.

10) Slash your student loans.



How not to blow it with financial aid

In Rachel Louise Ensign's Wall Street Journal article "How Not to Blow It With Financial Aid," she explains common mistakes parents and students make when seeking help with college costs.  Some of the common mistakes include:

• Earning too much at the wrong time.
• Letting the wrong family members hold college money.
• Making assumptions about what schools will offer.
• Thinking merit money is all about grades and SATs.
• Not applying for all the aid you're eligible for.
• Figuring the "expected family contribution" is all you're paying.
• Going for the loan with the lowest interest rate.
• Thinking an aid offer is set in stone.
• Figuring aid will be about the same all four years.

Click here to read the full article for more information.

Low interest rates = high opportunity

A recent article on MSN Money suggests 7 "smart moves" while interest rates are so low:

1) Buy a home or rental property

2) Refinance your home

3) Buy a car

4) Give money away

5) Review investments

6) Lock in student loan rates

7) Pay off credit card debt

Click here to read the full article for information on each.

Asking for Student Loan Forgiveness

I found this article on Business Week about former students asking for student loan forgiveness. Robert Applebaum, a 35-year-old attorney in New York, started a Facebook group in January called "Cancel Student Loan Debt to Stimulate the Economy." The group now has 292,703 members.

Here’s an excerpt from the article:

“Applebaum is one of thousands of graduates struggling with the repercussions of student loans years after graduation. There were nearly $131 billion in outstanding private loans in 2008, according to Mark Kantrowitz, founder of FinAid.org, which tracks the college financial aid industry. In addition, there is $544 billion in outstanding federal loans for fiscal year 2009, up from $502 billion in 2008, according to the Education Dept.”

To read the rest of the article, click here.

Media mentions: Jason White interviewed about student debt

Our own Jason White was recently interviewed by Edward Burch, a reporter for St. Joseph's own KQ2, for a story on student loan debt.

Thanks for including us, Edward!

http://stjoechannel.com/search-fulltext?nxd_id=161015

Student loan debt can spiral out of control

As education becomes more expensive, it stands to reason that student loan debt would be climbing. We ran across this story today about a female doctor who now has more than a half-million in student loan debt. What many people don't realize is that student loan debt is tough to get out of - bankruptcy won't clear it, and it's not tied to any particular asset that you can sell or give back to the creditor, as you might do if you got in over your head on a house.

In this particular story, the doctor notes that if she pays off the loans according to the schedule, she will be 70 when the debt is paid up in full. Wow.

If you have children, it would be a wonderful gift to help out with their education. With the cost escalating, it will be increasingly important.

Read the full story from The Wall Street Journal here:

http://finance.yahoo.com/college-education/article/108846/the-555000-student-loan-burden?mod=edu-continuing_education

Handling student loan debt

I think it's safe to say that the majority of college graduates have some sort of student loan debt when they graduate. It's almost commonplace. If you've chosen a private school and financed the entire education, the debt can easily be in the six figures, and if you've gone to graduate school on top of that, you could be talking about $150,000 or more. It's a huge, incredibly daunting figure.

In this episode of Dan Danford's podcast for Dad's Divorce, he shares tips and ideas for handling student loan debt. Remember, as your children choose an educational institution, encourage them to choose a lesser cost school if they'll be incurring debt. It can make a huge difference in their lives down the road. The less debt they have, the more freedom they have in their careers. Watch Dan's podcast below for more advice.