CLEVELAND, OH (WOIO) - It is a financial issue that maybe only the ultra-wealthy are not worrying about. Paying for or financing your child's college education is keeping many parents awake at night.
Estimates suggest that there is more than $1 trillion in outstanding student loans that the government holds. Saddling your child with debt as he tries to start his professional life is not what most parents want to do, but according to financial planner Allison Batt, it is better than the alternative.
"So what you will see and we would view this as very dangerous is people putting their children's education ahead of their retirement savings," Batt said.
Batt also recommends against taking out a loan against your primary residence to finance your students education.
That leaves student loans to make up the difference between what we have saved and the cost of college. If you are able, after graduation you can help your son or daughter pay back the loans.
Batt suggests what you should be doing in the meantime is researching, with your student, the best options for paying back the loans.
The government offers multiple loan repayment options and there are even forgiveness plans if you have a job that qualifies under the government plan.
The key, however, is to start the research, the process some may believe is intimidating, but it is worth the effort, "I think people don't start so my experience is not that they're looking and confused, I think they don't start," Batt said.
Federal Student Aid is one of the best resources available for people working to get their kids through college. "We research our mortgages, we get that done. We get our kids into school, we get them signed up. This is not something that can be ignored," Batt Said.
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