Posted on 08/22/2012 3:49:59 AM PDT by Kaslin
Dear Dave,
I’ve been working the Baby Steps and doing a budget most months. But how does someone who is single stay motivated and focused with something like this? It feels sometimes like it would be easier if I had someone holding me accountable.
Rick
Dear Rick,
The first thing is to make sure you do a written budget each month. Not once in a while, not most months—every single month. If you don’t draw the out-of-bounds markers, there’s no way to know when you’ve stepped over the line, right? A monthly, written budget becomes your self-accountability tool, especially when you’re single.
Still, there’s nothing wrong with introducing a little accountability into your life. You don’t have to be married to be accountable to someone other than yourself. Ask a good friend or maybe even your pastor to have a look at your plan and see what they think. Just make sure this person is someone who knows a little something about money and finances.
Honestly though, Rick. I think doing the Baby Steps and following my plan can be easier for single people. Think about it this way: You don’t have to talk someone else into coming along for the ride. You also don’t have to come to an agreement with someone else on everything financial. All you have to do is get serious, look in the mirror, and say, “Quit being stupid with money!” In other words, you just have to do it.
Admittedly, you don’t have the built-in accountability in a singles situation. But on the other hand, you don’t have someone calling you a doofus when you mess up!
—Dave
Dear Dave,
My brother was killed earlier this year, and my mom is finalizing his estate. He had a couple of federally insured student loans through Sallie Mae totaling $8,000 at the time of his death, and the attorney probating the estate says mom now has to pay off those loans. Is that correct?
Callie
Dear Callie,
I’m so sorry to hear about your brother. But no, your lawyer is not correct. Payment for federally insured student loans is not due upon the borrower’s death. They are waived.
I’m going to give you two pieces of advice. The first is to fire your attorney. We’re talking about basic knowledge when it comes to probating an estate here. If he got that wrong there’s no telling what else he’s told you that’s off the mark.
Second, you can take care of this by sending a copy of the death certificate to Sallie Mae. I’ll warn you ahead of time that it may take a while to jump through all their hoops. I mean, you’re dealing with the federal government. They’re not exactly known for getting things right the first time. But once you’re declared permanently disabled or you pass away, federally insured student loans are discharged and not held against the estate. Don’t pay it!
—Dave
If student loans were capped at $30k....I wouldn’t say much. But the odds of a guy being able to save and pay off his $80k student loan....is just a joke. No degree is worth putting yourself so deep into debt at age 21. You’d have to be a fool.
It’s $8K, not $80K.
8k
and student loans have become a racket.
I see a wave of disabilities in my crystal ball.
” and student loans have become a racket.”
(from the article)
“ once you’re declared permanently disabled [....], federally insured student loans are discharged and not held against the estate “
Record numbers of Americans are now receiving ‘Disability’ compensation...
Connect the dots, and say with me, “Hmmmmmmm....”
I’m pretty sure if mom was the co-signer, she’s on the hook for the student loans. I know a family to whom this happened.
If is the keyword.
You’re right, of course. But it’s my understanding that most student loans these days require co-signers. We don’t have an idea of the details in this instance, but I think a co-signed loan is a common enough occurrence that Dave should’ve mentioned it before he talked about firing the attorney.
And that differs from most colleges how? ;)
I was actually quite pleased when my niece dropped out of college and opted for taking the classes she desires on an as needed basis. She says most of the classes were garbage that had nothing to do with physical therapy.
She’s been cultivating relationships with local doctors and just opened her massage therapy business less than a block from the hospital the other day.
Students and their parents complaining about student loans are a huge thorn in my side.
I am a parent. Why didn’t parents SAVE for their children’s education? When my child was born, back in the early days of the internet, there were still magazines and newspaper articles about the amount needed to be saved to finance a college education. Of course, in today’s society, the new car in the driveway, the newest electronic gadgets and Jimmy Choo shoes seem to trump the responsibility of actually saving for the education of your own children. So, you don’t buy the newest gadget, instead you *GASP* put away a little money for your child’s future. And then, put some away for your own retirement. I really hate to see the mess this country’s going to find itself with the generation that didn’t save for their own children’s education reaches retirement age.
And here’s news for all of these parents. If you can’t afford to send your child to a school with $50,000 tuition, don’t. But then, that means actually being a parent and not your child’s best friend.
This country is in a world of hurt.
All colleges play money games. Not like someone isn’t paying for state colleges/universities which let people in. The difference in a public university is that the taxpayer is on the hook from the very start, and there’s no potential for the student to pay for most of his education.
are there non profit schools. in some way all are for profit.
I don’t know how they handle a co-signed college loan on death, but I do know a divorced woman who signed for her daughter’s loans and now the girl says she’s not going to pay them. Mom, who has just retired, is on the hook for the loans, of course. The daughter is married and she and her husband have their own house.
Lovely daughter. I would contemplate hiring someone from the mafia to “talk” to her.
“Why didn’t parents SAVE for their children’s education?”
I’m not going to criticize anybody who actually saves for something they want or need - clearly that mindset is something this country needs to relearn.
But it’s not unusual for colleges to exploit people with that mindset. At many of the better private colleges, almost no one (except for the genuinely wealthy) pays the “sticker price” - most students get some degree of financial aid. And unless that financial aid is “merit based”, the amount of financial aid is determined by a complex formula that takes into account the family’s income and assets.
That approach generally punishes middle class families that actually save for college - the more you save, the more you get bonged on any “need based” discounts you might have qualified for.
One caveat - those policies vary from school to school - but as a general proposition, financial aid policies at most schools are designed to actually punish responsible families.
I agree that the mother doesn’t have to pay the loans if she didn’t co-sign for them, but it does say that she is handling the estate. IF their is any money left in the estate it should go to pay off the bills.
I knew the rules a good while ago. I took out loans in my name for my two children
Still owe 99 grand. They pay me monthly and I pay gov. They don’t have responsibility for loan.
I am 69. Don’t think I will outlive the loan. I had this advice from a college loan officer..
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