College - or Retirement? You Choose!

The “bible” on Higher Education, “Inside Higher Ed,” recently published some alarming financial statistics on the choices that families are being forced to make when financing their student’s college education.

The Gallup Poll found that 47% of families utilize student and/or family borrowing to pay for college. Many of those parents (32%) “tap into” home equity lines of credit----on average OVER $10,000 per year.

The financial community sings the praises of 529 college savings plans, but they were used by ONLY 9% of the respondents and averaged less than $8,000 per year towards the college’s cost.

The future graduates are also being financially-strapped in obtaining that degree, as 23% of students have loans averaging $7,000 per year.

A Vice-President for Sallie Mae (the Poll’s sponsor) is quoted as saying that “the number 1 piece of good news is the OVERWHELMING consensus that college is worth it, AND the students and families are willing to do what it takes to pay for it”----WOW----that IS good news !!

EVEN THOUGH----the AVERAGE (inflation-adjusted) starting salary for college graduates HAS NOT RISEN in 30 years!!