What Happens to Student Loan Debt After You Die?

No parent wants to consider this — but what happens if one of your children runs up $80,000 in student loan debt, and then perishes in a car accident or dies of cancer? Will your grief be compounded by having to make years (decades!) of student loan payments, until the student loan obligation is paid in full? Every parent needs to be clear on the answer to this question: “What happens to student loan debt after you die?”

The answer is scary, but — there’s great hope for those who can plan ahead just a bit.

What happens to student loan debt after you die?

First, the good news, then the bad news.

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4 Amazingly Easy Steps To Get Out Of Debt

If you as a parent are out of debt by the day your kid starts college, you’ll have more cash on hand to help with college bills. If you start the process of getting out of debt years before your kid starts college, you’ll have more cash on hand to save for college.

Either way, you’ll dramatically increase the chances that your child will graduate from college and begin adult life debt-free.

Today I’m featuring four amazingly easy steps to get out of debt, from best-selling author Dave Ramsey. These steps to get out of debt are so easy, you can fit them on a post-it note.

get out of debt

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Genius Strategy for Giving $20 in COLLEGE SAVINGS As Holiday Gifts

I post this important article every December. This year, it contains a brand new resource! A free downloadable bonus article with super helpful information for grandparents. To get straight to the free downloadable article, click here:

How to Give College Savings As Gifts and Get Happy Hugs in Response

Most grandparents love to dote on their beloved grandchildren, but let’s face it. Older kids and teens are notoriously hard to shop for.

How can grandparents give a relatively inexpensive holiday gift that will be remembered with tears and great appreciation for years down the line?

No matter your income level or budget, Grandma and Grandpa, here’s an ingenious idea for deeply impacting the kids you love this holiday season.

grandma

This idea will help you to take the $20 you were planning to spend on a holiday gift, easily put that money into the best possible kind of college savings account, and still have something meaningful and beautiful for the child or teen to unwrap at your family’s holiday gathering.

All without nicking your own finances or damaging the teen’s future financial aid eligibility in any way.

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Morgan Stanley’s Alix Magner Buys 30 Copies of LAUNCH For Her Clients

Below, the Top 9 Questions Parents Are Asking Me About This Book

LAUNCH

To see a list of the top 9 questions parents are asking me about LAUNCH —along with detailed answers—scroll to the red print below. 

When Morgan Stanley’s Alix Magner calls you, you sit up a little straighter in your chair.

Alix is a high-powered, Stanford educated wealth management advisor who works with Minneapolis area families who have millions in assets—and families who are strategizing to get to that point.

When Alix told me that she’d read my book cover-to-cover and wanted to buy 30 copies for her clients, I jumped out of my chair.

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TONIGHT! This Free Event Could Save You TONS on College Costs

Ideal for Families With MIDDLE SCHOOLERS

Your kid’s in 6th, 7th, or 8th grade?  It’s time to set him or her free to feel jazzed and excited about college. Plus — as a parent– learn 8 things you can do right now to keep that kid’s future college costs low.

live event in Minneapolis

 

I’ll be covering all this in this free live event in Minneapolis tonight, January 10th, 2017.

Give your middle schooler (or high schooler!) a huge jumpstart on college.  Bring the kids and join me tonight for a free live event sponsored by Minnehaha Academy in Minneapolis.

I’ll be covering these important topics:

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URGENT Financial Aid Info For Parents of 10th Graders

Parents of Younger Kids, Read This So You Can Plan Ahead

Today I have urgent financial aid info for parents of 10th graders.

You need to know that on January 1, 2017, a team of photographers is going to show up at your house.

Not actual photographers, but that’s a good way to think of it.

Parents, they're about to take a photo of you.

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Your Kid’s Under 5? Get Ready for the Kindergarten Windfall.

If you’re parenting a kid who’s not yet in kindergarten, you’re wondering how in the world you ended up reading an article written by a writer who gets kids through college debt-free. Keep reading and I’ll tell you why this blog is the best place for you to be right now.

Kindergarten

On the day your baby starts kindergarten, your family is likely to experience an exhilarating financial windfall.

Daycare expenses may suddenly plummet.

A former stay-at-home parent might start working full-time or part-time.

The boost in your income in either of these scenarios is likely to be sudden and remarkable.

During the year before your baby starts kindergarten, sit down and plan how to invest this windfall.

Using the resources and support of someone like Dave Ramsey, start aggressively paying off your own student loan and household debt, and then once you’ve done that — visit a Certified Financial Planner and start planning retirement contributions and bit-by-bit college savings.

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URGENT: Will You Have a Kid In College Next Year? FAFSA Help Here

Part 1 of a 2-Part Series

This post is part 1 of a 2-part series.  To read part 2, which talks about what to do about the money your child has sitting around in his or her name before you fill out the FAFSA, click here.

If you’re parenting a 12th grader or a current college student, one of the most important days in your family financial life is coming up on October 1st, 2016.

Why is this date so important?

This is the first day you’ll be allowed to fill out the Free Application for Federal Student Aid (FAFSA).

Every family of a 12th grader or a current college student should fill out the FAFSA, even if you think that your son isn’t going to college, even if you believe that your income is far too high for you to get any aid to help you pay for college. Your son could change his mind in the next year, and as far as your income – did you know that you can make up to $200,000 per year and have substantial assets and still get free money financial aid to help pay for college? Besides that, if your child does end up needing any loans for college, the FAFSA form is the one and only gateway to the best, lowest interest federally subsidized student loans.

Don’t pass up free money that your daughter might have coming to her.

The only way to find out whether you might qualify for free money to pay for college is to fill out the FAFSA form.

The FAFSA form uses a confidential process to gather information about your family’s income and assets since January 1st of your child’s sophomore year of high school. It then uses that information to determine how much it is believed that your family can probably afford to pay for college.

Let me be blunt about what I’m about to say next. Parent, it will help if you can appear as poor and needy as possible on the day you fill out that FAFSA form.

This week, use these 7 last minute strategies to help tip the FAFSA equation in your favor.

FAFSA

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Top 5 Lies We Tell Kids About College

Read This When Your Kid's in Middle School.

This post is a scary one. But read all the way down to the red print at the bottom and I’ll give you a boatload of hope about college.

college

1. “If you don’t get into a good college, you won’t be able to get a good job when you graduate.”

This statement is completely and utterly false. Let’s all be honest for just a minute. Don’t you know people who went to so-called “bad colleges” and they have great jobs? Let’s get even more honest. Don’t you actually know many, many, many people who went to so-called “bad colleges” and they have great jobs? Why do we purposely scare kids with this lie?

2. “You, of course, shouldn’t even consider technical school.”

The bias against technical school gets communicated to kids from the age of 12 on up in a thousand insidious ways.

The subtle message kids hear is: “Tech school is for kids who aren’t as smart as you.” “Tech school is for kids who can’t get into real college.” “We won’t even show you a catalog of job training programs available at a technical school. We don’t care if tech school would empower you to make really great money after only two years of training. We won’t even suggest the possibility of going to technical school first and then perhaps four-year college after that. You’re smart and you come from a good family — that automatically means four-year college or university for you.”

(To see my post on “Could Your Kid End Up Wealthier and Happier by Not Going to College?” click here.)

3. “Of course you’re going to take out $40,000 in student loans to go to college. Don’t worry, you’ll easily be able to pay those loans back with the excellent job you’ll get after you graduate.”

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Grandparents, Here’s How to Give COLLEGE SAVINGS as Holiday Gifts

This article on how grandparents can give college savings as holiday gifts was updated on November 20th, 2018. 

Most grandparents love to dote on their beloved grandchildren, but let’s face it. Older kids and teens are notoriously hard to shop for.

How can grandparents give a relatively inexpensive holiday gift that will be remembered with tears and great appreciation for years down the line?

No matter your income level or budget, Grandma and Grandpa, here’s an ingenious idea for deeply impacting the kids you love this holiday season.

grandma

Write a letter, put the letter in a box, and wrap the box.

Now imagine this scenario.

The child or teen opens a wrapped box from you, and inside he finds an envelope that says, “Brad, read this later. Love, Grandma and Grandpa.”

In this special letter you tell him how much you love him, what admirable good character and potential you see in him, how proud you are of what he’s accomplished the previous year, how excited you are to see him have a successful future, and that you have made a contribution to a fund where you’re saving for his future education.

You don’t have to tell anyone the actual amount you’ve put into this college fund.

Any amount, even $10.00, is generous.

If you like to write, you can add more detail to this letter.

The letter could also include stories from your own life, along with wise advice for this boy’s future. Letters like these become increasingly precious to kids as the years go by—even if you’ve invested only a small amount in the college savings account each year.

Parents who’ve read pages 23–25 of my book will carefully save these letters.

On those pages, I strongly urge parents to carefully save these letters (along with photos of you and the child together), and then eventually use an online service to create a scrapbook out of them.

When this child is an adult, this scrapbook will mean more to him or her than a hundred sweaters and plastic toys.

What if your savings for this kid’s college ends up being over $100.00, and you want to invest it?

As this special college savings fund gets larger, you may want to invest it so that it can grow and increase in value while you’re sleeping. You shouldn’t do this until you’ve had a financial advising professional help you with your own retirement planning of course – but if you’ve got that taken care of, here’s what to consider as you invest this college savings money.

Invest in such a way that you protect the child’s future financial aid eligibility.

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