DON’T PANIC
You can’t help but hear from the radio, TV, and internet that the Dow is down to 2004 levels and credit is frozen. You check your investments and realize you have lost a small fortune. Some of you have your credit lines decreased or eliminated. You wonder if you will have a job.
The best advice is DON’T PANIC. Take time to list all your assets. Include the small bank accounts, the unused credit lines, the retirement accounts, the 529s, the house, and the car. Then list all your debts. Include both secured and unsecured debt. Now, make yourself a promise to
1. Pay off your debt as quickly as possible (see ideas at the end of the article) and
2. Don’t take on any more debt except for a home or an education.
You want to pay for college, which is probably why you are reading this blog anyway. You tried to save for college and either your expenses outstripped your income or the stock market ate your returns. Here are some less expensive ways to get that college education.
Look at in-state public schools. Your state tax dollar subsidizes these schools so your cost is much smaller. You can get a world class education at State U or State Tech for less than half the cost of an old-name Ivy. So when you make that 6-figure income, you can do something besides pay off student loans.
Consider two years at a community college. Some of these schools offer a guaranteed admissions program for students that keep their grades up. You pay community college prices for the first two years and transfer to State U or State Tech. You pay only two years at the higher price and graduate with “State U” or “State Tech” on the diploma. You prove you are very smart by finding a less expensive way to get a great education.
Government student loans are still available. Earlier this year the government added quite a bit of money to the student loan system. Credit is not frozen for this group of borrowers. HOWEVER, if you are considering a private student loan, you will be entering the frozen credit arena. I cannot predict if you will or will not be able to find the money.
Beware the marketers… Colleges and universities spend thousands on marketing strategies designed to convince the public that a student must attend…