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Why Wouldn’t Student Loans Be Forgiven?

Last week I was invited on to NBC 11 Alive news in Atlanta to discuss this recent article (http://cnb.cx/1ubs042) that shared a study where it was discovered that 24% of all Millennials expect that their student loans will ultimately be forgiven.   That’s a downright scary statistic.  One in four of the kids who are borrowing money to pay for their current college education expect that they won’t have to repay the very debt that they borrow.   How can this be?  Isn’t this generation the most educated of all time?   What is going on in America?   Here is my smart money moves take on the details and where this is headed. First things first, I’m not really sure at all why we are surprised by this sentiment.   Back in the real estate crash of 2007 & 2008, how many people simply handed over the keys to their properties, walked away from their homes, and came out unscathed by never fulfilling their ...

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Save Big, Save Little for College

For many of us, one of the biggest expenses that we’ll have is paying for our own or our child’s college education. Personally, I knew that I wasn’t going to have a “Free Ride” during college. Although I played Division III college basketball, I still maintained 4 jobs in college and used the tutoring services so that I could qualify for as many academic scholarships as possible and to pay down some of my student loans before I graduated.  According to the College Board, statistics show that over the past 30 years the average annual increase for college tuition has ranged from 3-5% above and beyond inflation(Consumer Price Index). I recently had the chance to interview Mandy Ginsberg, CEO of Tutor.com/former CEO of Match.com, about the different ways to help students save and pay for college. Below are a few tips that Ginsberg shares with our readers. “Save Big” Ginsberg says. Many people transition from paying for day care to ...

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Different Types of Credit Scores: Which Are You Getting?

As someone who has owned/operated a credit message board for 4 years running, I get quite a bit of feedback from consumers. Based on that experience, if I had to pinpoint the #1 most confusing and least understood topic within this niche, do you know what it would be? Credit scores. And my reason for saying that may not be what you think. Sure, a credit score is cryptic by nature, since its formula is a secret. But that’s not why it’s so misunderstand. Rather, the reason credit scores are confusing is because most websites that sell scores are misleading consumers. FICO vs. everyone else If you go apply for a credit card, mortgage, or car loan, there’s a good chance the creditor will be using your FICO score as part of their decision. FICO (formerly known as Fair, Isaac and Company) has been around since 1956. They were the first in the credit scoring industry. During FICO’s first couple decades, the ...

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Student Loans: Use Your Cash Or Take The Loan?

At Your Smart Money Moves, we get questions that we get from clients, through the website, or others that I see on the internet.   Here is a great one I recently came across around student loans. Q: I have about $40,000 saved up with an additional $6,000 in liquid assets that I am using as my emergency fund.  I’m attending graduate school, which will cost me about $50,000 by the time it’s over.  I will be working full time for the years of graduate school, so I believe that I will be able to save the extra $10,000 by the time I need to pay for it.    Should I pay the tuition out of pocket, or take out a low interest student loan at 5%?   I may be wanting to put a down payment on a house in the next five years, but I don’t want to begin accruing interest on student loans that I don’t necessarily have to incur. ...

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Personal Finance 101 – Running Your Family Profit and Loss Statement

For three years now, we have been teaching individuals and families to begin thinking about their family finances like they were running a business. We know that in every business the two major dashboards are the balance sheet and the income statement.   These two metrics over time develop a real sense of the stability of any company, and those factors will ultimately be a large determinant of the value of the business.  Running your family income statement efficiently (or profit and loss statement) will be the main factor in your long terms success or failure in helping create your own financial security. The next few weeks of articles will help shape some context on how to develop a framework of success running your family profit and loss statement. The balance sheet is simply everything you own versus everything you owe or what some people call your net worth.  This includes assets like real estate, collectibles, furnishings, and all of your ...

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