Debt Myth: You Don’t Qualify for Student Loans

Do you qualify for Federal student loans?

It’s not Breaking News that a college education is expensive and getting moreso at a rate that exceeds the inflation rate.  If you’re a parent of twins or triplets, so much the worse.

How that education gets paid depends on personal values, income and assets, among other things.  Some of it is just the result of hard work, like chasing down college scholarships for twins and triplets.  Earning a six-figure income doesn’t guarantee sufficient assets to pay for college, but many such earners believe that they won’t qualify for Federal student loans.  That’s not necessarily true.  This point is addressed in 12 Debt Myths That Trip Up Consumers, a recent Wall Street Journal article.mortarboard

Some key points:

  • The FAFSA – Free Application for Federal Student Aid, is required to be considered for federal student loans.
  • Federal student loans generally have more favorable terms than private student loans.
  • 41% of families earning $100k or more per year haven’t filed the FAFSA in recent years.
  • Some federal loans do not have income limits!

The bottom line:  regardless of your income, you may qualify for student loans that have favorable terms, and could make paying for college a lot easier.

 

 

 

 

About Kevin O'Reilly, CFP®

Kevin O'Reilly, CFP®, is a financial advisor who specializes in working with parents of twins and triplets. Have a financial question? Ask Kevin!

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