How to Borrow Money for Child's Tuition

Kid Dolan: Hey, walleyed poppers how are you? Daryy Dolan: Hi poppers. Kid Dolan: Were the Dolan’s, Kid and Darry Dolan at your service, don’t forget to keep sending your questions to walleyed pop because were here to answer your questions especially during difficult times like— Darry Dolan: Like a hole in your hair. Kid Dolan: It’s better than all in my head. Thank you darling. Darry Dolan: Oh maybe that is the hole in your head. Kid Dolan: At least can we do this please? Darry Dolan: All right, go ahead. Kid Dolan: Now, Marilyn emailed us here at walleyed pop, she’s a bopper and she say Darry I have two kids in college. Will the current credit crisis, which I just talked about, will it make it harder to get more money. I think she had a little money so far because the kids just started school. Is it going to make it harder for me to get money for college? Well let me give you the good news, the current credit crisis has wrought us for car loans, that’s right as for mortgages even people with good credit can’t get any one of them sometimes. But not so much for Federal education loans, not so much and that’s good news. Darry Dolan: This email that came from a good friend of us, Kal Chaney who is a financial consultant for college funding and author of the book, “How to pay for college without going broke” the latest edition which is just out, so anybody with kids in college should pick up a copy of— Kid Dolan: Oh, somebody is calling you in the telephone. I will be right with you. The book is called “How to pay for college without going broke.” I want to do this quickly. You can go to amazon.com, it’s by Kal Chaney, go to amazon.com and get a copy of that. “How to pay for college without getting broke.” You read this, this just came in, what does it say? Darry Dolan: Well it’s a little too complicated to do it but this is only good for 2008 to 2009, the current federal legislation unless they extend it—. Boy why don’t they just put a stake in something once in a while and it allows most undergraduate dependent and independent students to borrow an additional $2,000.00 in the form of unsubsidized federal Stafford loans. But I do wan to say—no you go ahead. Kid Dolan: I just want to take that thought there; the new legislation has made it easier for a parent to pass the credit test for that federal plus loans. Federal plus loan, which is different than the Stafford, so this are some good news there but there are some good news. What are you going to say? Darry Dolan: Here is my big concern and I think parents with kids that are in college or about to go into college who really can’t afford between the kids and their own savings. To do this without taking my massive amounts of debt seriously mean to reconsider college strategy because look at the situation were in economically. And what happens to the seniors who graduate this year, if they come into the world in which there isn’t an economist right now in this country that doesn’t expect to see unemployment go in higher. They are going to enter in a very bad time economically with student loans and possibly no jobs. It’s a very serious time for parents and college aged kids to start contemplating other alternatives. Even if you have to send them to a junior college for the first couple of years— Kid Dolan: To start saving. Darry Dolan: Nobody knows what the four years will look like. It’s where the degree emanates from it’s the final arbiter. Kid Dolan: I do want to say also, just to—that’s a good point Darry. Under the federal plus loan you can borrow—the parent can borrow up to the full cost of attendance and also can request that the money not be paid until after graduation number one. After the child leaves school without graduating or becomes of a student less than half time and the bigger question here now. That’s college, so the bigger question here is a bigger credit question and that is what do you do if the credit is bad and if you can’t borrow money even though money is tighter. Now is a good time to start rebuilding credit when it’s tough to get credit. Start paying your bills on time, start really building up that credit report because when it becomes easier to borrow money with better credit, you’ll be in better position. Start now, how to pay to college without going broke, amazon.com by Kal Chaney. Good one Marilyn thanks.