How to handle the cost of continuing your education.
Some people decide to get another college degree later in life. That typically means taking on student debt, and dealing with that debt after 40 takes planning.
Between 2005 and 2015, the number of Americans older than 60 carrying outstanding student loans quadrupled. How can you plan ahead to avoid joining their ranks?1
Try saving more than you will borrow. Start putting aside money for your education 2-3 years in advance. Or hold off enrolling for two to three years until you have more money saved.
Choose federal loans over private loans. Interest rates on federal loans are fixed, and their repayment terms offer some flexibility. Deferments or forbearances may even be granted in cases of hardship. If you do take out a private loan, a strong credit score could help you refinance it in the future. Ideally, refinancing does not leave the loan with a variable interest rate.1,2
Stick to public colleges and universities. If you are considering a private school, ask yourself whether the prestige is worth the cost. You could potentially assume more debt than you would by attending a public institution.
Ask me how this decision may affect your financial strategy. If you are considering furthering your education, please call or email me, so that we can look at how this may impact your retirement saving and wealth building effort.
Securities offered through LPL Financial, member FINRA/SIPC. Investment advice offered through Patriot Financial Group, a registered investment advisor. Patriot Financial Group and Summit Star Financial are separate entities from LPL Financial. 1Fool.com, "Here's a New Reason to Worry About Student Debt" (March 12, 2017) 2USNews.com, "A Guide to Refinancing or Consolidating Your Student Loans" (May 5, 2016) The information contained in this e-mail message is being transmitted to and is intended for the use of only the individual(s) to whom it is addressed. If the reader of this message is not the intended recipient, you are hereby advised that any dissemination, distribution or copying of this message is strictly prohibited. If you have received this message in error, please immediately delete. This material was prepared for John A. Gordon and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note: Investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting, or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax, or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. Tracking # 1-643625