Student loans are an enticing way to cover the cost of education. With over a trillion in student debt distributed among the students of America and wages stagnating, however, the student loan picture for those seeking higher education is relatively bleak. For this reason, most students are better off avoiding student loans altogether if possible.
Most physicians prefer to get right to the point and don't care for all the fluff. They expect a short, concise explanation. After all, they are busy people so time is of the essence. With that in mind, I created a 5-page powerpoint style guide that explains how Public Service Loan Forgiveness (PSLF) works.
Having helped several clients overcome their own set of student loan problems, I decided the best way to get in front of the issue is to make more borrowers (and their parents) aware of what pitfalls they should be avoiding. Today's blog article will kick-off by examining the 4 most common student loan mistakes and what you can to do to avoid those landmines. Then, I present 2 case studies to show you how the numbers crunch out.
The impact of student debt borrowing decisions and how to pay for college, even at the beginning stages, is substantial. For my client, Anne, we are talking about a difference of $94,100. It's why college planning is essential for families with college-bound kids. Especially when your kid wants to pursue a higher cost degree like a doctor, lawyer, veterinarian, or pharmacist. Regardless of career path, the economics of making sound choices, when it comes to paying for college, will have a dramatic impact on your child's adult life.
My grandma, Marybeth Mellen, passed away the same year I started my company. She was the last of my living grandparents. Actually, my grandma and grandpa helped pay for my college education. The fact I was planning to incorporate student loan planning into my business inspired me to name my firm after them and honor their legacy. Somehow through all the chaos in my life, everything began to converge in a way that I knew I had something. On October 17, 2016, Mellen Money Management was born.
Welcome to my first ever blog post. Given the amount of content, I am breaking up my first topic into a 4-part series called, My Journey to Starting a Fee-only Financial Planning Firm, which focuses on how my career path brought me to start my own firm. Part I, A Road Less Traveled, tells more about why I started a fee-only firm, while the other sequels provide a deeper look into the 3 places I worked prior to Mellen Money Management and how those experiences shaped my company's mission. The purpose of this series is to give entrepreneurs a peek into how an idea can turn into a profitable company.