The College Investor Audio Show

529 plans offer a dedicated way to save for education costs. Generally, parents or grandparents open up 529 accounts to build up a war chest for the beneficiary to eventually use on college or other educational costs. Since the primary contributor to a 529 isn’t the beneficiary of the account, the ownership rules might feel a bit murky. We get clear on 529 plan ownership rules in this guide. 

It’s almost tax refund season, and if you’re anything like the average American, you’re excited to get your hands on your refund check.But how are you supposed to cash your tax refund check if you don’t have a bank account? Using a check-cashing outlet can involve expensive fees. Plus, it’s risky to walk around with thousands of dollars in cash in neighborhoods that are often dangerous.Want to avoid excessive fees and keep your cash safe? Here are a few ways to get your tax refund when you don’t have a bank account.

If you or your family have saved money for your education within a 529 plan, you can use those funds to pay for qualified education expenses without tax implications. But how about students who opt to attend a trade school instead of a traditional college or university? Can you still use the funds in your 529 to cover college costs. We explore what the funds in your 529 can be used for, whether apprenticeships are eligible, and share some tips of how to fill any potential funding gaps. 

The student loan problem is complex and has multiple underlying causes. Rising college costs, increased student borrowing, complicated repayment options, and a lack of adequate oversight have all contributed to the problem.Several stakeholders share responsibility for this crisis: federal and state governments, educational institutions, loan servicers, private lenders, and even individual borrowers who may not fully grasp the long-term implications of their loans. Colleges have raised tuition faster than inflation, and government grants have failed to keep pace with increases in college costs, pushing more costs onto students and their families. Loan servicers and lenders have also been criticized for misleading practices, and many borrowers lack access to sufficient financial education before taking on debt.Solving the student loan problem requires a comprehensive strategy, not a single solution. Addressing the problem will require a multifaceted approach involving policy reforms, simplifying the student loan programs, and better regulation of college costs and lending practices. Additionally, increasing financial literacy can help students make more informed decisions about borrowing and repayment.Ultimately, understanding the root causes of the student loan problem is key to developing effective and sustainable solutions.

Curious about how AI answers work in personal finance? Hint: not very well. In fact, so bad that you could really hurt your finances.Robert joined the Stacking Benjamin's podcast to discuss AI in Finance, including sharing the results of The College Investor's recent AI Study.Check out the full interview here!

We break down the potential average net worth of Gen Z by age, based on available data from the Federal Reserve, as well as other assumptions.

How much ​your student loan interest rate really matter when it comes to repaying a student loan? What is the impact of interest rates on loan payments?The truth is: not that much.One of the most popular "alternatives" to blanket student loan forgiveness has been the argument that the federal student loan interest rate should be set to 0%. But given the wide array of student loan forgiveness programs and other assistance - does your student loan interest rate really matter?Let's look at how the interest rate impacts your student loans.

According to a new report from John Burton Advocates for Youth (JBAY), College Cash Uncovered, there are significant discrepancies between colleges’ published cost of attendance (COA) budgets and the actual expenses students face. These discrepancies contribute to college affordability challenges and inadequate financial aid. This leaves some students with financial gaps of $10,000 or more.John Burton Advocates for Youth (JBAY) is a nonprofit organization that focuses on improving the lives of youth who have experienced foster care or homelessness. They work on policy advocacy and providing resources to at-risk youth, including stable housing, education, healthcare and financial support. The organization tries to address higher education access, financial aid and foster youth transitions into adulthood.

Today's episode is an interview Robert had with Shellee Howard from the College Ready podcast. He talks about financial literacy for teens and parents, the ROI of college, how to think about student loans, 529 plans, and more!We hope you enjoy the episode. If you want to learn more about the College Ready podcast, check it out on your favorite podcast platform.

Being placed on a college admissions waitlist can create a mixed bag of emotions for applicants. On one hand, it isn’t an outright rejection, but on the other, it can feel as though you're being left on the sidelines.After all the effort you’ve put into essays, interviews, and extracurriculars, being placed on a waitlist can be discouraging and frustrating. But understanding how a waitlist actually functions—and more importantly, what your odds of getting in might be—can help ease some of that uncertainty and inform your next steps.We’ll dig into how the college waitlist process works, factors that influence acceptance from a waitlist, and what you can do to improve your chances. We’ll also look at real data from UC Berkeley's 2022 admissions cycle to give you a sense of how waitlist odds play out in reality.

Many people wonder just how much money they actually need to retire. In fact, it’s actually one of the most common questions people ask in regard to retirement. However, it may not be the easiest question to answer, as there are so many variables—many of which are unknown.You can begin to grasp how much you will need to retire, though, by considering the following questions.

Debt settlement is widely talked about as a way to get out of debt, but not many people truly understand how it works.You may have recently experienced a financial hardship and are strongly considering consolidating your debts to relieve some pressure. Before bankruptcy, there are two main debt consolidation options to consider. The first is a debt consolidation personal loan. This is often for those who still have a good credit score and debt-to-income (DTI) ratio. The second is debt consolidation via debt settlement, which is what we will cover today. The debt settlement industry has had many companies that have been unscrupulous. In fact, the Consumer Financial Protection Bureau (CFPB) has repeatedly warned borrowers that dealing with debt settlement companies can be risky. Does that mean that all of these companies are bad and you should never work with one?​Let's look at how debt settlement works, its pros and cons, and the most common scams and red flags of unethical debt settlement companies. Here's what you need to know.

Here's our financial checklist of the best money moves you can make by the end of the year to maximize your savings and investments while minimizing your taxes.The end of the year can be a whirlwind. But the actions you take over these final months can have large impacts on your tax bill next April and your long-term financial health. By taking proactive steps now, you can ensure that your financial life is organized and primed for success as you head into the new year. Wondering which items are most important to add to your end-of-year financial to-do list? Below are nine money moves to make before the new year to boost your bottom line.

Embarking on the journey to higher education is a life-changing decision. One of the first and biggest challenges many prospective students encounter is whether to pursue a college education in-state or out-of-state. As you know, the average cost of tuition has been on an upward trajectory since sometime around the 1980s. College tuition at a public four-year university increased 9.24% between 2010 and 2022, averaging a 12% increase each year in that period. Not only does higher tuition mean greater costs for education, but it also means greater likelihood of finding yourself graduating with larger student loans. This is particularly concerning when the average student loan debt of recent graduates is $33,500. In this episode, I’ll dive into the reasons why opting for an in-state college might prove to be a better long-term decision for you. From location and affordability to in-state benefits and quality of education, I aim to shed light on the advantages of keeping your educational investment in-state.

This Halloween’s most terrifying stories have more to do with your money than goblins and zombies.In light of this spooky season, we’re sharing some scary financial statistics and facts about money that could happen to you. But no need to run screaming, we give you a few recommendations to help you if you’re ever caught in any of these situations.

Should you pay extra to have your tax prep fees taken out of your upcoming tax refund? It sounds like an appealing offer - paying nothing out of pocket. But is it really worth it?The help of a tax preparation service can make your life easier and potentially lead to savings on your tax bill, but having to pay up front for tax prep services can feel like a hit to your wallet. One option is to allow the company to take your tax preparation fees directly from your future tax refund. We explore when it makes sense to pay for tax preparation services, when it doesn't, and the logistics of paying.

If you’re a business owner, the end of the year can be a very busy time.With the holiday season on the horizon, you may be juggling the demands of your business while making space to spend time with family and friends. There are several things you can do by the end of the year to end on a high note and get ready for tax season. With only 12 weeks left, here are some things business owners should do before the end of the year.

More and more people are learning how to make money using AI (artificial intelligence). The impact of AI on freelancing has been the subject of plenty of discussion as artificial intelligence begins to transform how freelancers operate and get paid. With a wide range of tools available on several platforms, you can now leverage AI to improve your productivity and provide clients with cutting-edge solutions.In this article, we'll explore how AI can be used to perform various side hustles and freelance work, from content writing to affiliate marketing to video creation via YouTube.

How much will college cost for students aiming to enter in the fall? The most recent data on the average cost of college is out, and we're breaking down the details.If you’re a millennial or Gen Zer, you might have heard people in their 50s and 60s talking about working their way through college and graduating with little debt. Today, that seems impossible. And that has contributed to students graduating with an average of $30,000 in student loan debt.How much does college cost today? Is it worth it to pay that much for a college degree? Well, we have the data through 2023 (the most recent available), so let's break it down.In today’s post, we’ll talk about the average cost of a college education over time and how you can get the most for your money as you research and decide on which colleges to attend.

Most people should not refinance their student loans. However, for some niche situations, it can make sense to refinance your student loans.There are various potential benefits and drawbacks to student loan refinancing. So when you're trying to decide if you should refinance your own student loans, there are multiple factors to consider.The decision will often heavily depend on the type of loan that you have, whether federal or private. If you have federal loans and are currently taking advantage of one or more federal benefits, you might want to avoid refinancing so that you don't lose them.But even if you aren't currently utilizing any federal student loan benefits, that doesn't necessarily mean that you should rush to refinance your loans right now. Here's how to decide when you should refinance your student loans and how to get the lowest rate when you do.

If you have access to a reasonably reliable car, then congratulations! Making money driving is one of the best side hustles!A decent car is the biggest asset most Americans own, other than their houses. And there are a lot of ways you can make money driving or with your car!  In fact, I've seen some people try to raise fast cash by selling their cars.But what you might not realize is that there are a lot of other ways to make money using your car. If you have a car and don't mind driving it around, then you're well on your way to earning hundreds of dollars on the side every month.This has been true for decades — a paper route or a pizza delivery job has always meant using your own wheels — but the app-based gig economy and the Internet generally has vastly expanded the ease of getting paid to drive your own car. Without further ado, here are some of the best ways to start making money driving your car today.If you want other money-making ideas, check out our Side Hustle Ideas post.

The FAFSA – or Free Application for Federal Student Aid – is required for students who want help paying for college. The application is managed by the Department of Education and helps federal, state, and college-level programs allocate financial aid. This includes grants, federal work-study, and eligibility to qualify for student loans.How much aid a student receives depends on a number of factors including their personal finances. Because many college students receive support from their parents, the entire family’s financial situation is also taken into account as part of the application process.Filling out the FAFSA correctly is important if you’re expecting to receive financial aid to help pay for college. Small errors can impact how much you receive or whether or not you receive financial aid at all. These are the 10 biggest FAFSA mistakes you’ll want to avoid.

I was recently asked a question by a reader about the drawbacks of getting a private student loan.She asked why she shouldn’t get a private student loan, when interest rates are so low right now. She would need to cosign with her daughter on the loan in order to get the best rate.My advice was as follows: the biggest danger of a private student loan is that the cosigner is also liable for the debt. So, should something happen to her daughter, and she can’t graduate and earn income, she will be on the hook for the debt.However, there are options to protect parents when it comes to paying their children’s tuition – tuition insurance.Below, we’re giving you our best insights into tuition insurance and sharing our top picks for tuition insurance providers.

Let's talk about $10,000... how to get there and make it happen. Why $10,000? Because it's a number that's big enough to make a difference, but small enough to be achievable by most people who set out for it. And there are some crazy ways to make $10,000, so this will also be pretty fun!We recently discussed how to pay down $10,000 in debt in just one year. One of the strategies is to earn more money - but many people don't think they can earn $10,000 extra in just one year.Today, I'm going to show you some of the more unique ways that you can do it. In reality, there are countless ways to earn $10,000 more in a year. That breaks down to just $833.33 per month. If you don't like these more extreme ideas, here's a list of 50 ways you can do it more of "the old fashioned" way.Believe it or not, these have happened. And people can make good money doing it.

If you’re listening to this, you probably either have student loan debt or you’re about to incur student loan debt and you're looking for ways to minimize your student loans.With student loan debt balances on the rise, your best bet is to pay off your student loan debt as quickly as possible, or better yet, stop the debt from piling up by taking the preventative measures. Many graduates have to put their life on hold because of common student loan mistakes. Avoid making these mistakes and get rid of your student loans in 3 easy steps!According to USA Today, up to 68% of college graduates enter the workforce with student loan debt. Our study found that the average student loan debt at graduation is roughly $30,000. To minimize the impact, follow these 3 simple steps to avoid unnecessary debt from accumulating.

Today's episode is an interview Robert had with Chuck Jaffee from the Money Life Show. He helps answer a reader question: what happens if you have money saved for college in a 529 plan, but then your child (or niece or nephew) don't actually go to college. What are the options? If you're starting from scratch, should you still consider a 529 plan?We hope you enjoy the episode, and if you want to learn more about the Money Life Show, check them out on your favorite podcast platform.

Did you know that your student loans could get you fired?Imagine this: One day your boss pulls you into his office, sits you down, and says there is a problem. However, your work itself has been flawless. But he doesn't want to talk to you about work — he wants to talk to you about your credit report.You see, when you were hired, you agreed to let your employer run your credit report (maybe unknowingly, simply signing a form in your hiring packet). And now, for whatever reason, your boss lets you know that HR has concerns about your debt. Suddenly, you go from star employee to looking for a job.You already know that student loans suck. It's a fact of life. But did you know that your student loan debt can get you fired? It's happened, and here are eight reasons why, and what you can do to prevent it.

A FERPA waiver, when signed by a student, allows parents to gain access to academic records during college. However, this raises an interesting question: should parents push their college-bound children to sign?Many parents, accustomed to having access to their child’s academic records throughout high school, are surprised when they no longer have the same access once their child enters college. As a result, some parents may consider requesting – or even pressuring – their child to sign a FERPA waiver. But is this a good idea?We’ll explore the nuances of FERPA, the implications of signing a waiver, and the potential consequences of forcing a college student to comply.

Low-income students are half as likely to enroll in selective colleges as compared with high-income students with similar grades and test scores. This is called undermatching. These students are often academically talented and likely to be admitted.¹ ² Still, many end up at less-selective colleges, such as lower-cost public colleges and community colleges. Some don’t enroll in any college at all.Public policy advocates have claimed that very selective colleges are more affordable for low-income students, despite the higher cost of attendance. For example, Matthew M. Chingos wrote in a Brookings Institution article, “For low-income students, these colleges will generally cost them and their families less than a less-selective institution with a lower sticker price but fewer resources for financial aid.” But is this true? Does generous financial aid really make selective colleges more affordable than lower-cost colleges? Or are selective colleges just trying to shift blame for their failure to enroll more low-income students? Below, we take a deep dive into the data to answer those questions.

When you’re getting ready to attend college, it’s easy to get swept up in the excitement of the college application process. You start by considering state schools, liberal arts colleges, and other post-secondary options, then you apply to your short-list of schools.After some long waits, you'll start to hear back about acceptance decisions and financial aid packages. The whole process is so complicated and drawn out that it’s easy to skip the final step of the application process, withdrawing your application from schools you won’t attend.Withdrawing applications is a courtesy to other applicants (especially those on a waitlist), and it can give you a sense of peace to commit to a particular school. With this in mind, these are the things you need to know about withdrawing a college application.

I don't know what to do after college!?! It's one of the most common questions I hear - from high school grads, to college students, to even some nearing college graduation.If you find yourself saying, “I don’t know what to do after college,” you are not alone.The truth is, most college grads have a "now what" moment. You've basically lived your entire life to-date in some type of educational setting. Even if continuing on to grad school or some form of post-baccalaureate education is not in your immediate future, and a job is not exactly what you are looking for, there are ways to live life after college that will still make you a productive member of society.I'm going to share with you my thoughts on what to do after college. Maybe you think these are basic - fine. But maybe they will give you some food for thought.

Are you ready to take control of your financial future?You don’t need a financial advisor to develop your own financial plan. In fact, YOU are the best person to put one together.When you’re directly involved in mapping out your finances you’ll be more likely to actually stick with your goals. Plus, you’ll have a keen awareness of where you stand financially and what it’s going to take to get you to the next level.Here are six elements of a strong financial plan.

The average cost of tutoring can vary based on a number of different factors. While it used to be something only the wealthy could afford lower costs and new technologies are making it more accessible.For example, working with a private tutor in a large city, will likely be more expensive than working with a tutor remotely. This article dives into tutoring costs and some of the things you’ll want to consider before you begin working with a tutor.

Today's episode is a live stream interview with GradGuard CEO John Fees. We talked about tuition insurance and when it makes sense, and then covered dorm room renters insurance. There was some listener Q&A mixed in!Enjoy! Let me know what you think.

Did you know that you can start investing with $100 or less? Most people think that you need thousands of dollars to get started investing, but that's simply not true. In fact, I started investing with just $100 when I started working my first job in high school (yes high school). It's possible to start investing in high school, or in college, or even in your 20s.Even more food for thought - if you invested $100 in Apple stock in 2000, it would be worth $25,000 today. Or if you invested in Amazon stock at that same time, it would be work over $3,500 today. And that's just if you invested $100 once. Imagine if you invested $100 monthly since 2000 in Apple stock? You'd have well over $4,000,000 today. Seriously.

Life during college often comes with many ups and downs. Sometimes, life throws an unexpected curveball that requires students to withdraw from school mid-semester. If you’ve already paid for classes, you might not get a refund. That’s where tuition insurance can help.Whether you are a parent or student, tuition insurance can be a worthwhile way to secure your investment.In partnership with GradGuard, let’s take a look at five common reasons you should consider tuition insurance. GradGuard is a leading tuition insurance provider and they can help you protect your college financial investment. Get a quote here and see how affordable tuition insurance can be >>

As high school graduation approaches, you might find yourself at a crossroads. Should you take the conventional route and go straight to college, or have you been dreaming about taking a break from school to try something new?Either option holds its value. While fewer than 5% of high school students in the U.S. choose to take a gap year before enrolling in college, the Gap Year Association reports that “students who had taken a gap year were more likely to graduate with higher grade point averages than observationally identical individuals who went straight to college.”In this article, we focus on common pros and cons of taking a gap year and identify some ways to help you take your next step, regardless of your decision.

Did you know: marital status can be a factor when determining financial aid eligibility.If you are making your way through college after tying the knot, your financial situation will likely look different than that of your single peers, which could impact your access to financial aid.But everyone’s situation is unique. We explore some of the potential benefits for married college students below. 

In recent years, many colleges and universities have adjusted their campus pet policies to meet the changing needs of students.Having a pet in college was once a rarity, but pet-friendly campuses are now more common as colleges work to create a more supportive environment for their students.That said, having a pet as a college student is a big commitment in terms of financial responsibility and time commitment. From explaining common pet policies to reviewing current trends on campuses, we break down the ins and outs of owning a pet as a college student to help you make the most informed decision for you and your pet!

Sharing a living space with someone for the first time, whether it’s your best friend or a total stranger, can be exciting and intimidating at the same time. There’s a lot to navigate that exists outside of your control: habits, personalities, cuisine, culture, and a number of other lifestyle factors shared in a tight space.You’re not alone in your concerns, though, and it’s likely your roommate has been thinking something similar. Finding harmony in your college roommate experience requires a number of soft skills to foster a positive relationship and safe living environment. And I bet that if thousands of students have successfully navigated this before you, you can do it, too!Here are our tips for living with your first college roommate!

Social Security (SS), Supplemental Security Income (SSI), and Social Security Disability Benefits (SSDI) are three federal benefit programs that can provide income to Americans who aren't able to work. SS, SSI, and SDI are all are managed by the Social Security Administration.Each of these programs, however, have different purposes and eligibility requirements. However, when it comes to taxes and financial aid, it can be confusing to understand how each work. For example, do you need to include SSDI benefits received on the FAFSA?But how exactly do these programs work? And how do they play into your tax bill? In this article, we’ll look at each one and their impact on your paycheck, taxes, and FAFSA.

A common question we see every year is "can you take out more student loan debt than you need?" It sounds crazy, but some people want to take advantage of the low fixed costs and loan forgiveness options than may come in the future.With the rising costs of tuition, fees, and college living expenses have made financing a college education increasingly difficult.The fact remains that most of us will apply for student loans at some point in life. And while loans provide essential financial support at an important time, they come with significant responsibility and long-term implications.So how much do you really need? And how much should you accept? Making informed financial decisions now can truly set yourself up for success later, and student loans are a great example of this. So read on to start building good financial habits!

With college becoming more expensive, how can parents afford to send a kid to school?More than a decade after completing college, 7% of Millennials still have more than $50,000 in student loan balances. Facing our reality of digging out of debt and knowing our friends' horror stories, many millennials are motivated to help their kids get through college debt-free. While we can’t promise that you’ll be able to help your child avoid debt, we’ve got realistic tips to cover the cost of college from the day your child is born to after they graduate.

Property taxes are typically your largest homeownership expense after paying your mortgage. Any way to save on your property taxes can be a big win for your budget!Homeownership can be a true joy. The thought of holding your very own keys in your hands and being able to point and say “That’s my house”.That’s until it’s time to pay property taxes. The average property tax in California is $4,694 per year whereas in places like New Jersey and Connecticut, it ranges from $6,400-$9,300 per year. This is undoubtedly not one of the joys of home ownership.Now of course, we all want to be great citizens and do our due diligence to help with infrastructure and projects that benefit our communities. However, there is no reason to be overpaying your property taxes.There are ways to legally reduce your property tax bill - let's dive in.

Bad credit can limit your ability to do a lot of things, including purchasing a car, home, getting a credit card, and in some cases, even a job. Being creditworthy certainly has its advantages.If you don’t have good credit, there are steps you can take to fix it. The process is called credit repair. You can do it by yourself or have someone help you, for a fee of course.We break down your options here!

In its nearly 250-year history, the U.S. has experienced more periods of inflation than deflation. The last big period of deflation occurred during The Great Depression.There was another smaller period during the Great Financial Crisis. Both coincided with a recession. During a recession and deflation, people lose their jobs, demand drops, and with it, prices.But for those who are able to hang on to their jobs and have investments, what should they look at for some of the best investments during a deflationary period? In this article, we'll explain how deflation works and offer a few strategies for defending against it.

Around 80% of mortgage borrowers in the United States have an escrow or impound account. In fact, these accounts are required by some lenders.These accounts hold money on behalf of the buyer to ensure certain payments are made on time - typically homeowners insurance and property taxes. This can help reduce liability and risk lenders take on, giving buyers access to better financing options.What is an escrow or impound account? Is it required? More importantly, how do you cancel an escrow or impound account if you don’t actually need it? This article will dive into all of those questions to help you figure out whether or not an escrow account is a good move for you.

When you think of financial scams, you may think of Bernie Madoff and Nigerian Princes. But if you listen to enough “financial experts” on YouTube and TikTok, you may hear that the humble 401(k) is a scam.A 401(k) is a tax-advantaged retirement investment account offered by many employers. It's an account so basic that it may be a victim of its own success. Has the 401(k) scammed aspiring retirees out of their hard-earned money? We don’t think so, but we will explain why the account is being so harshly maligned.

The tax deadline is almost here! Here are some last minute tax reminders if you're still working on filing your taxes.Although it might not be the most enjoyable financial task, it's a necessary obligation that we each undertake every year. And if you use great tax software, filing taxes doesn’t take as much time as you may dread.But tax filing time isn’t only about filing returns. There are things you can do today to help you save money on your tax bill, and help you save time on filing.Here are the best last-minute tax tips to consider this season.

The short answer is no, you cannot use a 529 plan to pay for SAT prep. However, all is not lost. While SAT prep courses can be expensive, they don't have to be. There are affordable options to help you prepare for the SAT. Here's what you need to know