Page 21 - 2015 Contact Magazine: 3rd Quarter

After encountering family
after family with the same
financial problem, Taylor says it’s
easy to see where the problems lie.

Sheryl Hogle, CEO and director of financial education Harborlight Credit Union, discusses  “Many people have trouble follow-
student loans with a member. ing the rules of funding,” he said.
“They have to be willing to do the
work and commit to a plan. We
teach them subject mastery and
the skills required to begin the pro-
cess. We help them take a real-life
approach to solving the problem.
The solution won’t come
immediately—an 18-year-old
problem can’t be fixed overnight.”

CU Student Choice’s maximum line of credit tops out at $75,000 Take the Free Money First
for loans for bachelor’s degrees, graduate degrees and consol-
idation loans, though each participating credit union can set its As the cost of college has risen, credit unions have stepped in to
own loan limits within those parameters. While it’s advised that help offer affordable loans to college students. Student Choice
students always go with the free money they’re offered first— wants to help credit unions grow their loan portfolios and
such as scholarships and grants—CU Student Choice bills itself increase their market share with college students, but it also
as a manageable and affordable alternative to government loans emphasizes responsible borrowing. The CUSO suggests that
or signature loans from the credit union, which require immedi- before potential borrowers look at loans, they exhaust all other
ate repayment. Many credit unions’ Student Choice lending options for free money, including scholarships and grants. After
portals also include links to federal student aid and even schol- that, federal loans with lower, fixed interest rates are encour-
arships from the credit union alongside information about how aged, followed by private lending from a credit union if neces-
to apply for private loans. sary. When those gaps occur, though, Student Choice aims to
help credit unions be the solution.

Zero Net Debt?

Jeffrey Taylor, a Southfield-based certified college planning
specialist (CCPS) with the National Institute of Certified College
Planners, says that with the right planning and understanding of
where your money actually goes, it is possible to graduate from
college with zero net debt. He says the real problem is that par-
ents and the students don’t have a financial plan in place, and
their financial situation only gets worse if they don’t fix
the problem and make a plan.

“Sixty percent of students become college dropouts by the sec-
ond year—even with financial aid,” he said. “The choices they’ve
made, and the lack of understanding of the implications of their
decisions, are why they’re in that position. That’s where I come
in. I ask parents where their tax refund goes, and they can’t tell
me. Imagine if they had saved their tax refund—anywhere from
$2,000–$5,000 every year.”

Taylor’s company relies on word of mouth for marketing, and he
often speaks at high schools and community events, including
seminars where he can reach Millennials.

T hird Q uarter 2016 I Contact 21