Here’s some advice from Ellie Kay, America’s family financial expert, geared specifically toward parents about how to help their students graduate from college debt-free. As we all know, student debt is a major problem for recent graduates across the country. Currently the total student loan debt in America exceeds 1 trillion dollars! It can be difficult to graduate debt free, but if you have the right advice and common sense it can be done!
Hearing from a financial expert is great, but hearing from a parent who has been able to apply wise financial advice and help her kids graduate debt-free is even better!
Good video, but she’s way off on 529 plans. The fees are too high, and the money in 529s are subject to market conditions. Why would any parent risk one dime of college money in the stock market? That’s the danger of 529s. And to suggest that a child to file an expense report with the parent is simply naive. Sorry, but if this video is any evidence of her college expertise, I’m looking elsewhere.
Paul, If you don’t recommend 529 plans, what do you recommend? And…I agree with the expense report (but you can always monitor their checking account :>)
Put the money into a cash-value life insurance policy. Life insurance is one of three assets that colleges do not ask about. CAUTION: be sure to find a policy that has no surrender charges and no interest penalties upon withdrawal of your cash. Very few companies provide these two features. Another alternative to 529s is a simple bank account where the money will not be at risk.