July Newsletter 2013: Student Loan Rates Double & More

 

Happy July! I hope everyone has a great 4th of July weekend!

In this month’s Senior Scoop, learn how to maximize the IRS educational tax benefits available to you before you choose which funds to use to pay that first college bill.

It’s official, student loan rates for government subsidized loans went up from 3.4% to 6.8% effective July 1. Read more below in our Featured Find to see what Congress has in store for us. And make sure to listen to our College Smart Radio show archive where we ran the numbers.

My next webinar is scheduled for Wednesday, July 17th at 7pm. I’ll provide parents with information on the steps to take right now to create your college funding plan. Reserve your webinar seat today!

It’s July and time to prepare for the new adventures that await your high school graduate at a new college campus. A great gesture before moving on is to send thank you notes to every person who helped plan, prepare and make that exciting final college selection.

Enjoy your summer!

All the best,
Beatrice Schultz, CFP®
Westface College Planning 
College Funding Specialist 

College Smart Radio: Tackling the Runaway Costs of College

Tune in to 1220am KDOW – the Wall Street Business Network from 3:00pm-3:30pm every Saturday for my radio show, College Smart Radio – Tackling the Runaway Costs of College. The show can be streamed live at www.KDOW.biz, too!

Curious what College Smart Radio covers? Tune in this Saturday when I discuss, “Vertical Integration of Education – Integrating High School, Community College and 4 Year College” with my guest Ron Galatolo, Chancellor, San Mateo County Community College District.

Listen to our College Smart Radio archives, where we discussed, “Student Loans – How Much do They Cost.” We ran the numbers comparing the 3.4% and 6.8% subsidized interest rate and discussed the impact on student borrowers.

It’s all important information you won’t want to miss out on. Thanks for listening!

Featured Find: Student Loan Rates Double After Congress Fails On Fix

Interest rates on federally subsidized Stafford student loans doubled overnight, soaring from 3.4 percent to 6.8 percent after Congress failed to reach a deal.

Though lawmakers potentially could still pass a bill to undo the damage, Congress’ Joint Economic Committee has estimated the increase – unless and until it is reversed – will cost the average college student an additional $2,600.

Democrats have sought to keep interest on Stafford loans low, saying poor and middle class students need the help to get a college education. Republicans have proposed linking student loans to the financial markets instead of letting Congress set federal lending rates. President Obama included a variation of the market-based approach in the budget he sent to Congress earlier this year, leaving his fellow Democrats trying to block his efforts.

Continue reading on FOX News.

Photo Credit: FutUndBeidl

Upcoming “Tackling The Runaway Costs of College” Webinar & Workshops

Seating may be limited – Register to ensure your spot!

Most parents are not financially prepared to enter the most expensive time period of their lives, covering their child’s college education. Our 1-hour workshops provide steps you can take right now to assure you understand the cost of attendance and how you can afford college without jeopardizing your retirement.

Our next upcoming webinar and workshop are:

• Tackling the Runaway Costs of College – Webinar: Wednesday, July 17, 2013 from 7:00 p.m. online.

Parents and students are welcome! Please visit our workshops page to learn more or click here to reserve your webinar seat today!

Senior Scoop: Coordination of Education Benefits

College bills will be coming out this month. As you’re finalizing your college funding budget make sure to coordinate the IRS educational tax benefits available to you. Do not make the mistake of paying for that entire first semester bill with 529 funds and loosing out on a $2500 education tax benefit that you should have qualified for.

Although there are some great education tax benefits, it is important to understand how they work together, as each family might qualify for more than one benefit.

“Qualifying education expenses” can mean tuition, fees, room & board, books, supplies and equipment – it varies by the education tax benefit. For example, room and board is not a qualified education expense for the American Opportunity Tax Credit, but it is for a 529 withdrawal.

Continue reading here.

Photo Credit: fsecart

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About Westface College Planning

At Westface College Planning, we are committed to helping parents through the process of making the right financial choices for their college bound students.

If you are a typical parent with college bound students, you’re probably overwhelmed by all the research necessary to help your sons and daughters make the right choices and prevent overpaying for their education.

You are not alone!

Our information packed one-hour workshops will help you:

• Understand the true cost of college and how to afford it.
• Learn the specific steps to take immediately to maximize financial aid.
• Receive valuable information on scholarships and gift aid qualification.
• Gain awareness on how to accurately compare the true cost of schools, public vs. private.
• Develop best practices for school selection, and more!

More information at westfacecollegeplanning.com.