Federal Student Loans,
3 Facts You Need to Know

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Federal student loans are nerve wreaking. It causes strife because you want your child to have the best possible start in life, yet for some of us, we don't even know where the start line is.

We hope that it is college. Given the unknown, we are willing to put our and our child's financial future and retirement on the line to test the theory.

Yes, college may be one of the best options that we can provide our children that provides a foundation to a career that they will enjoy.

But...

Does that foundation have to come with such a heavy price tag?

Can we send our children off into adulthood without the burden of debt lingering over their heads or ours?

Where in The Book of Life does it say that we have to start our children off in a deficit in order for them to get ahead?

When you take on federal student loans, or any other educational loans, you start your student off from a negative position in life.

SOME GREAT START, HUH?

What your child does from that point on is totally dictated by the bills that they need to pay in order to maintain their...

• ...credit, because the debt belongs to them,
• ...your credit, because you will cosign for their loans,
• ...their lifestyle, because they have a standard of living that they want to upkeep,
• ...and their consumables, because they are the basic necessities of life.

The stage is set by what you do with your student prior to the start of their financial career.

The position they are in before the beginning of their career is built on the foundation of what decisions you make before college that determines how they will live after college.

The financial habits your child develops NOW will carry over into all the financial recesses of their working years and all the years of their retirement.

So it is not just about funding your child's education through federal student loans, it is about creating a lifestyle that teaches financial acuity...

1. ...how they learn to take on debt,
2. ...what effects that debt has on their life and lifestyle,
3. ...and ways to avoid getting caught in the traps of debt repayment, no matter how low the interest rate is.

Loans and the accumulated interest on those loans place a heavy weight on you and your child's back come six months after graduation.

That brings me to ask the question...

...DOES THE COLLEGE EXPERIENCE HAVE TO BE RIDDLED WITH FEDERAL STUDENT LOANS?

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