It used to be that parents and students had the opportunity to finance higher education with almost no limit to the amount they could borrow.

The H.R.1 - One Big Beautiful Bill Act, changes that. It imposes new limits to parent financing and student loans. In particular, capped borrowing for graduate students at $50,000 per year for professional studies and $20,000 for other programs.

With Parent PLUS loans also facing new annual and total caps and credit underwriting criteria, it's even more important for families of high school students to understand these limits, considering they may only have a year or two to plan and establish the funds to cover college.

Private Student Loans: Pros and Cons for Borrowers

While you still have alternative financing options, such as private loans, there's much more of a “math game” to it, because debt-to-income ratios and credit scores become significantly more important.

Understanding New Federal Limits for Loans (for Students and Parents)

(00:01:08) Graduate Student Loans Borrowing Changes

(00:05:38) Parent PLUS Loan Borrowing Limits and Criteria

(00:08:49) Customizable Borrowing Options for Private Student Loans

(00:11:43) Financial Eligibility Based on Debt and Income

(00:17:22) Grad Plus Loan Elimination and Co-signing Risks

(00:21:09) "If you are looking at a school that's $90,000 a year, but you know, realistically, you're not going to get aid for whatever reason, but you don't have the savings to pay $9,000 a year. And now you might not have the ability to borrow $90,000 a year. That school can't be on the list. Right. There's, there's no way it's gonna happen." - Jack Wang

Connect with host, Jack Wang: https://www.linkedin.com/in/thejackwang/

*be sure to send a connection request with a message saying Hello!

Navigate college funding with me at www.smartcollegebuyer.com

The content of this podcast is for educational and informational purposes only and should not be considered financial, tax, or legal advice. Nothing in this podcast is a recommendation or solicitation to buy or sell any financial product or service. Every family’s financial situation is unique, so always consult with your own financial or tax professional before making any decisions. While we do our best to provide accurate and up-to-date information, we can’t guarantee its completeness or accuracy. Past performance is not indicative of future results. Your mileage may vary. No warranties, express or implied. Batteries still not included.

Student loan debt is a topic that affects millions of people across the country. It's a financial burden that many individuals face as they pursue higher education, and the impact can be long-lasting. Whether you're a recent graduate or have been out of school for years, understanding student loan debt is crucial to managing your finances effectively.

"It wasn't that simple of just drawing up different options for repayment terms." - Travis Hornsby

Understanding student loan repayment goes beyond just basic options and terms. It's a complex process that requires careful consideration and planning.

• Travis has seen student loan debt can up to $2 million for a couple in some cases, with an average of around $260,000 per person.
• Understanding available options for loan forgiveness and income-driven repayment plans is crucial in managing student loan debt effectively.
• Leveraging student loans strategically and reframing debt as an investment in education can help individuals navigate financial situations more effectively.
• Private student loans differ from federal student loans in terms of tax implications and dischargeability in bankruptcy.
• Strategies such as filing taxes separately and increasing retirement contributions can help reduce student loan payments and lower taxable income.
• Public Service Loan Forgiveness is a program that allows individuals working in public service to have their student loans forgiven after a certain period of payments.
• Viewing student loan debt as a strategic move for education and income potential can help individuals make informed decisions about financing their education.

00:05:58 Effective Management of Student Loan Debt

00:08:21 Extensive Student Loan Debt Variances

00:12:23 Non-dischargeable Private Student Loan Obligations

00:14:06 Tax Filing and Retirement for Debt Relief

00:17:56 Maximizing forgiveness and minimizing tax payments

00:24:26 Loan Forgiveness for Public Service Workers

Travis Hornsby, a renowned expert in student loan debt and founder of Student Loan Planner, approaches the topic with a unique perspective centered on strategic management and mindset shifts. He believes that student loan debt should be viewed as an investment in education rather than a burden, encouraging borrowers to leverage their debt wisely to enhance their career potential. Hornsby advocates for a thorough understanding of repayment options, including the nuances between federal and private loans, and promotes strategies like filing taxes separately and increasing retirement contributions to manage payments effectively.

Connect with host, Jack Wang: https://www.linkedin.com/in/thejackwang/

*be sure to send a connection request with a message saying Hello!

Navigate college funding with me at www.smartcollegebuyer.com

The content of this podcast is for educational and informational purposes only and should not be considered financial, tax, or legal advice. Nothing in this podcast is a recommendation or solicitation to buy or sell any financial product or service. Every family’s financial situation is unique, so always consult with your own financial or tax professional before making any decisions. While we do our best to provide accurate and up-to-date information, we can’t guarantee its completeness or accuracy. Past performance is not indicative of future results. Your mileage may vary. No warranties, express or implied. Batteries still not included.

Choosing a college where your student will thrive is about much more than the school’s name, ranking, prestige, or reputation. Research from Purdue University and Gallup highlights that aspects like caring professors, supportive learning environments, and experiential learning opportunities hold more weight in determining a student's college experience.

(00:04:19) Impact of Supportive Learning Environments on College Choice

(00:09:24) Enhancing College Learning Through Real-World Experience

(00:11:09) Enhancing College Experience Through Student Engagement

(00:21:31) Student-Centered College Selection for Success

(00:22:44) Optimizing College Choices for Financial Stability

In making your dollars work best for your kid’s college, a HUGE factor is whether the school selected is a good fit – reducing class skipping, increasing involvement in extracurricular activities, and being more active on campus, simply because they enjoy the school environment.

The wrong school selection can waste money, not to mention creating a distasteful experience for the student and family. Jack Wang, an advocate for this holistic approach, emphasizes that finding a college environment where students can thrive academically, socially, and personally is key.

His perspective is shaped by the belief that true student engagement and workforce preparation come from hands-on experiences such as internships and extracurricular activities, which also aid in personal growth and network building.

• Factors like professors' care for students, creating a supportive learning environment, and experiential learning opportunities matter more than rankings or class size in selecting a college.

• Offering hands-on experiences like internships, co-ops, and undergraduate research helps students apply classroom learning in real-world settings and prepare for the workforce.

• Student participation in extracurricular activities helps build networks, fosters campus community involvement, and provides valuable growing up experiences.

• Understanding and prioritizing student preferences like school environment, social activities, and academic fit are crucial in selecting the right college for overall success and well-being.

• Choosing the right school where students can thrive academically and socially can impact the financial aspect of college by reducing costs and avoiding additional years of education.

Connect with host, Jack Wang: https://www.linkedin.com/in/thejackwang/

*be sure to send a connection request with a message saying Hello!

Navigate college funding with me at www.smartcollegebuyer.com

The content of this podcast is for educational and informational purposes only and should not be considered financial, tax, or legal advice. Nothing in this podcast is a recommendation or solicitation to buy or sell any financial product or service. Every family’s financial situation is unique, so always consult with your own financial or tax professional before making any decisions. While we do our best to provide accurate and up-to-date information, we can’t guarantee its completeness or accuracy. Past performance is not indicative of future results. Your mileage may vary. No warranties, express or implied. Batteries still not included.