The #1 Way to Reduce College Debt

The #1 Way

to Reduce College Debt

written by

Stanley J. Targosz III

Stanley is the President, Co-Founder of Responsible College Advocates© as well as the author of the new book - The Affordable College Plan: The Responsible Alternative to Free College.

With college debt being such a hot topic these days, I thought I would shed some light on the best solution to help control the epidemic.  We constantly see Free College and College Debt Forgiveness being the political solution, few believe it will happen, which is why we need a real answer. 

I have been working in the college world for over a decade and have helped families save millions of dollars off the cost of college.  I really believe the best way to reduce college debt is by having a plan on the front end to reduce the cost before you enter college.  If we spend a few minutes and think about this logically, when the cost is reduced on the front end, before your child even enters first semester of their freshman year, you owe less when they graduate.  This can be accomplished organically, with a clear understanding of how the college game is played, who the players are and what opportunities each family has.  I am not a big proponent of families spending thousands of dollars to get a plan to teach you how to “game” the system.  I have helped families from low income to over $400,000 of AGI reduce their cost of college without spending a dime for the information.  If you have a few thousand to spend on a plan, you are probably better off using it to pay for college.  About 10-15% of the families need to spend a few bucks to have someone help them get into college, and the right one. 

Making Sure Everyone is on the Same Page

In my experience, if a family is on the same page during the junior and senior year of high school then the student will choose a better “fit” for the college they attend, which has many benefits.  First, if a student is getting into a college or university that wants them, you can expect more financial benefit and better awards, maybe an additional $20,000 over four years.  That can come in the form of merit money or scholarships.  Another benefit the student has is a higher chance of getting out in four years, not five or six.  That is another $40,000- $60,000 savings.  Finally, when everyone knows the boundaries that are in place they can work towards a common goal.  It should be getting the student into a career that is viable and will pay for the student loans they must take to complete the process.  Mom and dad are not expected to pay for the whole education, at least not the families I speak with.  When the student has some skin in the game, they feel like they own it and will work harder. 

There Are NEW Resources

There are many other resources that were not available when I went to college that will help reduce the cost for families today, even how they get scholarships is different.  They now have micro-scholarships which are a game changer.  Most high schools can help guide that ship, but we always make sure mom and dad are following up to acquire those dollars that are floating out there waiting to get grabbed and used.

Certified & Credentialed

Certified College Debt Specialists at Responsible College Advocates have the tools, knowledge, and technology to keep you on track, your goals at the forefront, and your dollars working for you and not your lenders.

Responsible College Advocates is a Free Community Resource. We believe that since you had to pay for your education, you do not have to pay for the solution to further your after-college goals. We may not be able to give you free college or forgive the college debt you have already accrued, but we can give you your personalized free solution.

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Virtual Learning for Parents & Students

Virtual Learning

for Parents & Students

written by

Stanley J. Targosz III

Stanley is the President, Co-Founder of Responsible College Advocates© as well as the author of the new book - The Affordable College Plan: The Responsible Alternative to Free College.

Mom and Dad, Virtual Learning is not just for the Student!

In light of all of the current changes we are facing as a country, virtual learning is taking main stage.  Your children are getting more acclimated to learning online and using web-based tools to help get their education up to speed. Schools are getting more and more classes and information online to make learning available to everyone, and we are seeing that technology helps keep families growing their knowledge in non-traditional ways.  You might even see it happening at work, being allowed to work from home and do virtual webinars and meetings.  Progress still has to happen considering challenges.

We know that your student is learning online and that the education system is adapting to this way of teaching.  It allows for students to be more efficient and forces the system to get organized in a different way.

Similarities in the Chaos

What has not changed is the desire to do something after high school- college is still the next step for most students and an admirable goal for most families.  How are mom and dad gathering the data and putting the plan in place to make sure that they can afford the next step. One thing has not changed, the cost of education has not dropped with the online environment.  You might be able to do more from home, but the cost of the education will still be the largest obstacle for most families.

Times Have Changed

We have been seeing more and more parents want to have home study classes and resources that meet their needs for seeing how to pay for this next step.  The worry is not transferred to web-based platform, it stays with you.  The impact on your retirement and future is not transferred away or changing either.  We need to make sure that as we are shifting our style in this country that we do not set ourselves up for additional unintended consequences.   When they invented the 529, we thought we could save our way to pay for college, but that has led to a $1.6 trillion parent and student loan epidemic.  There are more people receiving social security still paying on student loans today than ever before.  That wasn’t even a thought in the 80-90’s when the advisors were promoting these college solutions. 

There are Resources Available

As we make this transition to more web based and online learning, let’s not leave mom and dad behind.  Here are some great resources to help make sure that as your child is getting ready for college, your budget and personal economy are up to speed as well.

I hope that you find some great resources and help other parents reduce their cost of college and take control in this trying times. 

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College Crisis Survival Tip: Cash Flow Management

College Crisis Survival Tip:

Cash Flow Management

written by

Stanley J. Targosz III

Stanley is the President, Co-Founder of Responsible College Advocates© as well as the author of the new book - The Affordable College Plan: The Responsible Alternative to Free College.
Cash flow management during a crisis is the difference between survive and thrive. Once we understand that, those who manage cash flow the best come out on top. We can start putting a plan in place that will help us move forward with confidence.

Whether the issue is a pandemic, loss of a job, a health care recovery issue, or college; managing cash flow can make the difference between getting the right help and support versus just “settling for” or throwing up your hands in defeat.  Once you have a path for recovery, being able to survive with your basic needs comes into play very quickly.  We go “all in” while we are finding a solution, only to wake up having to pay for it.  Most of the time, paying for it comes with additional pain.

We have students and expect them to go to college.  Often, we think that it will “Just Happen” on the payment end of things.  We think that:

  1. The school will help with the cost because we do not have extra money
  2. The student will just take a lot of student loans
  3. They will be independent and are on their own
  4. And many other creative ways to handle this problem
A Harsh Reality

Most families believe these will happen and that their children will do ok, however, it is not that simple.  Mom and dad will pay for the lion’s share of an undergraduate degree for their children.

Now comes the harsh reality of getting an acceptance letter, a final award letter and the sinking feeling that most of the solution is cash flow or parent loans.  It is not what was hoped for or even close to being affordable.  The 5 phases of grief come into play and we often hover around anger and denial for a long time.

Families have this incredible feeling of “Let’s rally the troops” and they cut costs, initiate an extreme budget, couponing, stop vacations, using mattress money and every other way they can imagine solving this problem.  It is unrealistic to think you will not have debt to pay for something that you have not been able to save enough money for over 18 years.  Let me say that differently, if you have not saved $100,000 per student over the last 18 years, what makes you think it is reasonable to pay $100,000 over the next 4 years to get through college?

Most families cannot do that.  Then they panic, settle for and start lowering their expectations.  You do not need to go to a 4-year school out of the gate, try a community college, go to the commuter in-state school, do only web-based programs, and more. Few will change the course.  After all, your child earned their way on and you told them they could go for the past 18 years.  You decide you will “just figure it out, we always do and it always works out,” right?

Finding the Solution

Here is the silver lining. Acceptance has set in.  The Ah-ha that the student can manage to get through college in 4 years, at the right school, have a plan for their student loans, and graduate. Yes, even if mom and dad are not prepared to pay cash for it, they can use debt to manage.  There is a huge sigh of relief.

The Solution- Cash Flow Management.  We can deep dive into mom and dad’s economy and find the most efficient way to pay for the oldest child. Then, layer on each additional student in a systematic way.  When we help manage cash flow the big picture still stays intact, the younger children still get to go to school, the amount of debt accumulated is not ideal, but not scary and there is an end game solution.  When we put a cash flow management tool in place with a strategy you can move forward with clarity.   It will save the day and keep your life plan on track.

Many families who do not have a cash flow management plan end up with a ton of unmanageable debt and never really recover.  This is all solved on the front end.  You can even get more efficient as you plan years before your child even enters college.  If you reduce what you pay before you get in, you can manage cash flow much more efficiently.

There is a solution.  It might not be obvious, but it works.  During a crisis, managing cash flow can shorten the pain and help you thrive and survive on the other side.