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Student Loan Forgiveness Scams

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
November 27, 2020 7:03 am

Student Loan Forgiveness Scams

MoneyWise / Rob West and Steve Moore

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November 27, 2020 7:03 am

As student loan debt continues to skyrocket, scams do as well. Unfortunately, scammers have found a way to target new grads who are bogged down with debt. On the next MoneyWise Live, hosts Rob West and Steve Moore reveal what to watch out for so you don’t fall victim to scammers targeting graduates who owe. How to spot a student loan scam on the next MoneyWise Live at 4pm Eastern/3pm Central on Moody Radio.  

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Scammers often target senior citizens with fake warnings from the IRS or the Social Security Administration, but they have a new vulnerable group in their site. Since younger folks struggling with student loan. Tens of thousands of dollars in your contacted by a company with an offer to have your student loans forgiven refuse advises president Rob West has what you need to know not to broadcast discrete recorded were not really here the studio but we are here with some great information about student scams stay with us all that next moneywise line Rob, I suppose it was just a matter of times M artist out there praying a desperate, vulnerable people and that certainly describes those who are looking at decades, perhaps of student loan payments.

Well, it's true, we get calls from so many of them here on moneywise live Steve as you know, but as you hear so often when something seems too good to be true it probably is. And in this case it definitely is okay so how exactly does this Work while the Department of Education says it's been contacted by many people reporting that they received phone calls but also emails, letters and even text messages offering them relief from from their federal student loans.

Usually these messages include warnings that the student loan forgiveness programs are ending soon, which is not true. Here are some examples of those false claims. Let me quote from an actual scam. It'll say act immediately to qualify for student loan forgiveness before the program is discontinued or you might hear your student loans may qualify for complete discharge enrollments are first-come, first-served, and finally student alert. Your student loan is flagged for forgiveness, pending verification call now.

So if you get a call from someone making those claims while just hang up if you get something in the mail that affect it can go right into the shredder.

Okay so that's the hike, but how exactly do the scammers make money in this good question by requiring what seems like a relatively small payment upfront and relatively is the key word. If you owe, say $50,000 in student loans and some offers to help you get rid of it for $1000. It sounds like a great deal so you pay the money, but then you may never hear from FP can guess what makes this confusing is that there are quasi-legitimate companies that say that help you through the federal loan forgiveness process for some sort of upfront fee. Yes, it's even more confusing because the education department actually does contract with a select group of prescreened legitimate companies for servicing federal student loans that will actually have a link to that list.

In our show notes today@moneywiselive.org just click on the name of today's broadcast okay yeah that'll be helpful. Is there an easier way to avoid being scammed when you have to be careful because a lot of scammers will claim that there quote working with the US Department of Education. But you just mentioned the surefire way you can tell they're not working with the government. And that's the upfront fee or any fee for that matter. Stay away from anyone asking for money federally approved loan servicers will never charge fees to help you with your student loans. The education department says there's nothing a so-called student loan debt relief company can do for you that you can't do for yourself for free sounds, like a credit repair and they have a federal loan group of federal loan servicers ready to help you again at no charge. They even have a new online tool, Steve, to help you get started with the public service loan forgiveness program which is the most popular forgiveness program that will have a link to that as well in the show notes for today okay any other types of help that the education department might provide.

Well first they'll help you determine if you're eligible for loan forgiveness or other programs that can be confusing. They can also help you lower or Your monthly federal student loan payments consolidate your federal loans and help you get your loans out of default okay with interest rates so low these days. Is there any chance you should be looking around for something in that regard.

I sure yeah you might be able to lower your monthly payment.

That way, reduce the overall amount you'll have to repay by literally thousands of dollars. Now that's definitely the case. If you have private student loans. There's no downside to refinancing a private loan. If you get a lower interest rate as long as you don't extend the term if you do extend the term and have to repay the loan, you could end up paying more overall but with federal loans. There is a downside. Steve, since your new loan will be private. If you refinance not consolidate refinance lose those repeat meant options and Marla protections. I was just talking about offer great information is always listening to moneywise live. However, today's broadcast is mine. When you pause briefly and then back this is do you know if you have enough enough money of house.

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Sound mind investing.org since 1990 sound mind investing in stocks offer financial wisdom for living well sound mind investing.O RG this is anagram lot to the daily life for daily living 2000 years ago, a solitary figure stood alone against all the visible and invisible forces of evil in the universe is all man and was placed upon as he walked to the place of sacrifice. No one stood with. He was crucified on a Roman cross suspended between heaven and hell, God and man. As Jesus was cursed and jeered by the very ones he was giving his life for he was overwhelmed with loneliness, enduring judgment, separation from God as he became sin for us. Matthew 2746 says. He cried out my God my God why have you forsaken me. Then he gave his life to reconcile us in a right relationship with the father listen to me when we receive him by faith. He will never leave us, never forcing we will never truly again, this is anagram lot that is robbing you of freedom and peace of mind. Christian credit counselors can help Wear nationwide nonprofit counseling organization has helped over 3000 individuals in the last 27 years get out of credit card debt percent faster while honoring that that info to learn how Christian credit counselors can help you visit Christian credit counselors.org Christian credit counselors.org or call 800-557-1985 today for games and again we gave you a couple of websites and some information you find all of those notes when you visit our website moneywise live.org, which is where you'll find lots of great information, free resources and links to past radio archives of of past radio programs for the last year or 18 months or so moneywise live.org Rob it's a Friday. Anything else on your mind before we figuratively turned the corner, well, you know, Steve. Thinking back over this week we have covered a lot of ground. We talked about a lot of different topics all fun and enjoyable, but that lots of social media engagement this week which we are really grateful for if you've not followed us yet on Facebook. We'd love to have you do that. Just go to Facebook.com/moneywise live you'll find us there. You can follow us and we post daily. We have a question of the day and you can engage with other moneywise.

Live listeners were also on Instagram and Twitter. By the same names would love to have you there with a sense it's just enjoyable to be a part of this community who want to think biblically about God's money. Amen. And if we can help you do that, let's talk 800-525-7000. I we begin by going to Wauchula, Florida.

Bonnie have to ask where is Wauchula like okay okay it is kind of in the center of the state heartland will what is your what is on your heart today. How can we help find appointment with one of my client and now been kind to me and I came and my for loan companies to contracting me about a child are getting along to the point, cocktail like he was telling the trays yeah are you these all federal loans Bonnie that you have okay and so are you unclear as to which loans are actually outstanding.

What the balance is in the payment that kind of information, or worse, the confusion any type okay alright well you could start by couple ways. Number one I would start with the US Department of Education. You can call them at 800 USA learn and the Department of Education will help you sort out what loans there are and put you in touch with the servicers to help you make those payments and make sure your you to understand exactly who to pay through and and what's outstanding. There's also something called the national student loan data system. You can Google that again national student loan data system that's a government website that will help you get accurate data on whatever student loans you have outstanding that would be on the web. Either case would would help you. I think sort out what you have not beyond that once you get the information it be really helpful for you to have a spreadsheet maybe a Google spreadsheet or Excel where you have each of the loans.

The name of the servicer of the contact information interest rate the status I'd I try to get all that in one place and then you can track it online with the site I mentioned in perhaps you might even want to try to synchronize the payment dates you could do things like set up auto pay. You can even look at a consolidation to simplify things and put them all into one that will refinance them. It still through the federal loan consolidation program, but it's just to simplify it because you could end up with one monthly payment and an aggregate rate that represents the rates that you currently have.

So there would be a change there, but I think the starting point is what you're asking about and that is either the phone call to USA learn 800 USA. Learn more by connecting with the website that I mentioned in getting the details to the national student loan data system and you can Google that and you'll find a link that helpful yet national student loan data system and you'll love you'll find a link to that website when you Google that he Bonnie I to try something, but I like to try something we've never done before, so I could apologize in advance of it doesn't work, but we have Seth calling him as well online for and sucking Harris yeah I you were doing great. We also have Bonnie on the line and she's having some problems with her student loans, paying then knowing where to go and my notes say that you've been involved with the public service loan forgiveness program. Can you tell us how that works for you or any advice you might have. :-( Let me first start by saying that Google was my best friend when figuring that out though, I really started by going to Google I typed in public service loan forgiveness. It directed me to get out the government website. When I did that and went to the website. Actually it gives you drop-down that you can click on and it give you everything you need to know about what the program is very hyperlink that you can click on direct you get out with what you need to provide and that was my big thing that I did with making sure that I followed everyone at that they recommended I got all my loan transferred over to a particular service or utilize though that's what I did, and once I did that bit of time it took a little bit of legwork on the front end. Once I was able to do that and I got placed on a particular payment plan.

I've been through my first year of payment. I've done that and so I'm on year to the law in out the 10 year plan that's pretty much what I did I just sell that one government department or nonprofit. Do you work for the qualifies you for this public service loan forgiveness so I work at the district attorney hearing that and now it could be an end up. Another thing is if you go on the website. It'll give you a list of all qualifying governmental entities, different like I think there's some nonprofit unit that it gives you a list of what would to qualify the particular job. Yeah. Very good/appreciate you weighing in. Seth is exactly right. If you just Google public service loan forgiveness. The first thing that will come up will be the government's website from the federal student aid office, which is a part of the Department of Education and you'll see everything you need to know, including the requirements for what Seth is qualified for that which is either working for an approved government office or department or a nonprofit. Of course you have to make those hundred and 2520 qualifying payments, which is 10 years of on-time payments and then a number of other requirements, but to have your loan forgiven when she once you complete it is obviously a huge opportunity and we appreciate you calling that to your listeners attention Bonnie Seth take you for calling today. Got bullish about that. Thank you very very much 800-525-7000 up to Concord, New Hampshire hello Karen, what's your situation.

I think I'm trying to figure out. Anyway, I have you went to college. One thing because now we kind of figured that out playing with the third line but what happened to me and parent plus loan or direct loan. Thinking out the smart move by the primary breadwinner, so he ended up doing a loan through him. I found out that I work for a nonprofit hospital for 26 years I found out what the third one that I could have been the primary and had the loan forgiven within 10 years will with the thing company now trying to figure out a credit very difficult to get it rectified so that you can kind of move around to put you on the loan to get them forgiven, but I credit very difficult.

Yeah there are some hoops you have to jump through and and I do a little bit of research on this. I'm not up on exactly what it's going to take my understanding is that if you're on one of the income contingent repayment plans with a parent plus loan or you consolidate through the federal consolidation program then that's where you may open up the opportunity to qualify for the public service loan forgiveness and I would just call the Department of Education to see if you can get that forgiveness retroactively likely not, but you can want to make sure you understand all the details there before you proceed. Because what often happens is people think they're on track for the public service loan forgiveness and they've missed one of the key elements in only to find out either halfway along work when you get to the end that you don't in fact qualify so you can want to get all of the details based on your particular loans. What needs to happen in order for you to perhaps qualify and I would go right to the Department of Education to ask those questions, Karen. We appreciate so much you calling today and wish you the best as you explore that care and God bless thank you very much for contacting us this works out for you. This is moneywise live Rob West. Today's broadcast is recorded so we won't be taking any calls but we have some calls lined up in some great information coming your way, but I think you will find usable at the very very will be right back. Here's a great deal more about our money than most of us imagine Jesus is more about our use of money and possessions and about anything else, including both heaven and hell in managing God's money on the Randy L breaks it all down in a simple, easy to follow format that makes it the perfect reference to look you're interested in gaining a solid biblical understanding of money, possessions and eternity managing God's money is available when you click the store moneywise live.org and start to ask the way Psalm 60 versus 436 you talking God you are to be against the bow with your right hand may be delivered from a sanctuary and it continues I want you to see what verse four says because it's so important to our lesson you you have raised a banner, here's the deal. No proper fear of God holy fear toward him as our banner against, or in any reason why we get more fares because we have small talk and disrespectful thoughts… When you you know people who are not vice questions about planning for retirement.

Long-term care insurance. I don't know where to start. It sounds like you need to moneywise help you find answers and more money. You can ask your questions with helpful articles and moneywise podcasts sounds great okay searching for moneywise and moneywise, listening to a best of broadcast of moneywise live. This program is pretty recorded can email us@questionsandmoneywiselive.org questions@moneywiselive.org we do our very best to remember that God owns it all. That's a great place to start than everything else seems to fall into place.

Once you've established and driven, that stake into the ground that God owns it all and were just managers or stewards of what he provides. Let's go out to Yukon, Oklahoma hello Kelly what your situation well. I have a 19-year-old daughter had a credit score 0 had a credit score 0 and I put her on a user on one of my credit cards I have credit score not, little 800 and I was looking for a way to give her credit score up the district get her started in life and by putting her on my credit cards within a couple weeks her credit score jumped up and I went to the bank and talk to them about being alone by her new car. Although I was given a new car used car and it it. My question is it wrong to borrow money and I cosign you cosign a loan for her on a vehicle that she's not actually paying back I'm get a patent on backwards putting money in her account letting her make the car payment for something to start her payment history well suggesting the question.

Obviously there's a very clear warnings in God's word around cosigning but what your doing is you're not really cosigning just to give her the benefit of your credit with an expectation that she's going to make the payments and make good on the note you are going to own it, you're going into it knowing that you're responsible for your good to be the one paying it, but you're giving her the benefit of having that reported to her credit file. I don't see anything wrong with that. The only potential downside Kelly is that if something unforeseen happened in your life that McLeod did not allow you to make these payments on time. One of the repercussions of that is that that negative information will follow her to her credit file as well see just have to recognize that, but assuming you're going into this with the full expectation to repay. You've got the reserves, there you have the ability to cover it. Even if you were to lose a job or something were to come out of left field, then I think it's absolutely okay to put her on there. Again, the difference being that you are going into this knowing you are fully responsible for it. And there's not an expectation that she'll make good on it when if she could not, it could create damage in the relationship between you and her and you know that's what we want to try to avoid in a cosigning situation that make sense absolutely wait, I already own the vehicle.

I was just going to borrow money against it and put the money in her account allow her to make payments back on me know about like $600 and finance charges over the course of the three or four years that we would finance it. So that's a different understanding than I had originally said the only reason you're taking out this loan and paying interest is to build her credit just to get her credit only reason it out and what we can. Interesting. Anything on the loan. Pershing it was 3.7 what I got down big fan of that approach Kelly.

I just think there's you know it's not that important.

She's going to build credit. Over time, I'd rather you see I rather see you get her a secured credit card were you perhaps put a deposit or she does of two or three or $400 on file error skews me on deposit at the bank get a credit card against dad that she would use for recurring budgeted items every month and then pay it off and pay no interest and just build her credit over time. That way, rather than you will paying interest purely for the sake of building credit. It's going to happen and feel students coming out of college every day starting out, go to buy error skews me the lease apartments and you get to begin to do business with other people and help you just have to work with it and understand the implications but paying interest just to build the credit score a little bit faster when there's other ways to do it without paying a dime would be my preferred approach on that you follow them saying no, absolutely that's what I call yeah yeah so I would bail on that. Let's go get the secured credit card let her use that for budgeted items at the same time wanted to teach her if she doesn't already know about setting up a spending plan and really beginning to learn God's way of handling money and doing favors demo. I will send you a copy of Howard Eaton's book, your money counts and what you start working your way through that with her chapter at a time so she can see God's plan for his finances that she's managing and we appreciate your confidence or thanks much, Kelly, and of course if she's not in college yet, the solution hits campus. The credit card folks will be there giving out free T-shirts and application. This is moneywise live your hostess less times more back with more, how should we as Christians think about investing. What if we could invest our money in a way that aligns with what we believe that Eventide we believe it is possible to love God and love our neighbor in the very practice of investing redesign investments for performance and a better world so you can invest for the future with a sense of wholeness and purpose. We call this investing that makes the world rejoice. More information is available@investeventide.com Christian healthcare ministries enables believers to show love for one another by sharing each other's health costs through CHN's voluntary health cost-sharing programs members uplift each other spiritually and financially. CHN was an eligible option under the affordable care act and a Better Business Bureau accredited charity interested. Learn more by calling 800-791-6225 or online at CH ministries.more. My name is communications major at Moody Bible and is neither things are always happening at Moody radio God is at work in listeners all around the monthly online newsletter uplift is changed in order to bring more listener stories more program updates and more listening resources be among the first to know about radios ongoing out check out the old new newsletter subscribe right now my Moody radio.org my Moody radio theory.

I need some help.

Sometimes I feel like I can't get a handle on my money. I mean where is a no go. It sounds like you need to moneywise help you plan your budget and track your spending three dollars you spend every morning on coffee every morning and get access to free difficult financially nice sounds awesome. Let's do it. Okay, searching for moneywise in the abstract moneywise son John Scott, Pres. Robert as well as the court battle, a Federal Appeals Ct. in Philadelphia has rejected the president's latest effort to challenge the election results of the case is expected to reach the US Supreme Court, if the president appeals Monday and feel will spend 137 million on fines and safety improvements, because they move too slowly to recall over 1 million million US vehicles with engines that can fail national Highway traffic safety administration announced those penalties today. They resolve a four-year government probing of the company's behavior involving recalls of multiple models dating to the 2011 model year, the agency says automakers have to recognize the urgency of safety recalls sucks punishing hiring a shortened session. The ballot 37. The NASDAQ gained 111 points.

This is SRN use listening to moneywise around Leicestershire Holsteins more.

We have some interesting calls all lined up now. Today's program as we mentioned earlier is prerecorded, so don't try to call in yourself, but Michael's been holding. He's just down the street and the deer is Bill George and Mike let's cook and how can we help you. Thanks waters in this day and age. Here's my question. My wife and I are about 64 shall be 64 lunch and she currently had a 15 year level term policy that has moved outside that level term. And so were extracting increased premiums yearly. We have we have our everything all set aside with her final needs funds set aside and were just trying to figure out how to get like been turned down three times in condition and do we really need life insurance that would be my first question Michael is what is the purpose of the insurance you will continuing to work and for instance as relates to her if something were to happen to you. You know with that creates a hardship for her and in with the opposite be true if something were to happen to her related to you or 13 years, $2 million.

Should something happen to me.

She hasn't worked since I've been retired, so there's no income to replace or anything like that so I would not be really impacted if something happened to her house and replace okay and I think that's the answer in the pre-existing condition adds to that because even if we could find an insurance company.

By the way, if you were to really need a policy in her.

I'd encourage you to go to an independent life insurance agent who really knows the various companies and players who could perhaps find a company that is more predisposed to extend a policy based on her particular condition because they do vary, but based on what I'm hearing that's not necessary because in the event of the Lord calls her home. There's not a financial impact on you and therefore that money that you be spending and probably considerably more than what you would be expecting to spend because of she's now 15 years older and she's got this pre-existing condition that money is just unnecessary and can be redirected to other places additional savings and additional giving. If you have a debt retiring that debt. Does that make sense so we are mortgage and were were in good shape there. We got our funds set aside. That was her point why we keep spending this you know $80,000 every month, when we could be putting it into sightings or something.

Yeah I think that's right. And you know so often what happens is we think will really need life insurance and we've always had life insurance, why would we not have it and that's true. We need it until we don't need it anymore and I think you're in that position.

Certainly as it relates to her, which is a good thing because now that money can be redirected elsewhere in the bottom line is you've managed your God's money well in such a way that you don't need it because you been a saver and she's not bringing in income into the home currently and for all of those reasons that money can be redirected Michael we wish you the best.

Thank you very much. I think you and your wife have found are arrived at the correct conclusion. Thanks, Downers Grove, Illinois hello Dale what your question, good afternoon. Thank you for taking my call Each letter got here back in 2012, I refinanced $470,000 in my home in Garden Grove for 3.75%. I recently got a notice from my mortgage company that said paying the minimum is 787 a month, but I've been paying 1200 a month with quite around now and he said if I keep going. Currently have that have the loan paid off and 11 more years, but if I refinanced for 15 years at 2.625%.

I have it paid off in nine years, and state $19,000 in interest and I can't find a mortgage calculator took to confirm his numbers from wondering, does that sound like a good idea. Keep well. I like the idea of you. You sound like a disciplined guy.

The fact that you been paying you know this much extra as you have been each month tells me that you're living well within your means you're living on a spending plan. You don't have any issues with that.

So the fact that you could take three and a 3/4% mortgage down to just over 2 1/2% is a great thing and as long as you don't fall into the trap of reducing that minimum payment because it likely go down but continuing to send that save 1200 a month. I assume that's correct them and you could go online and look at an amortization schedule. Just put in mortgage calculator or Google amortization schedule and you could run these numbers to prove out what he's saying. I think the thing to look at. Though Dale is not. Is this the best mortgage available to you because what we find is this is the largest transaction will make, and often times what people do is they don't shop around. They just take the first offer they get in, although clearly that rate is an improvement, you may be able to do a little better than 2.625 on a 15 year or you may get the same rate but with less expenses know there may be some discount points that he's built in here something like that. So I get at least a couple more offers and if you don't know where to go. I go to bank rate.com see who's offering the best rates right now.

It's probably good to be an online bank at 415 year mortgages with people that have your credit score and get good faith estimates from those lenders as well to compare alongside this one, but the bottom line is if you keep up the same payment and encoded about a point or more off of the mortgage you are in fact probably go pay this off a lot quicker save a lot of interest, even though you're going to spend, you know, probably could be $1000 or more on the refi and that's what you're going want to look at are you saving more interest in your spending to to do the refinance of the first place.

In terms of expenses you follow all that I think that answer the question and thank you very much okay Dale God bless you sir thanks Dale no Rob, I like to go back if you don't mind. To Michael's call just a moment ago they were wondering about life insurance today really need life insurance. What's the purpose of life insurance. I know people who have quite a bit of money tied up in life insurance because they feel that's the only way they're going to really have anything to leave to their children as an inheritance is a large life insurance policy that does not hold water.

It is that a good way to approach it.

You know Steve like I guess the key there is are you going to be able to maintain that policy until death, and if you can, at what expense right because often times we talk about insurance, life insurance, at least I'd rather you buy pure insurance which is good be term insurance where you're just paying the straight mortality cost during the season where your building wealth and then you drop it if you want to carry it out till death. You're gonna pay a lot more in premium because it gets more expensive over time to ensure yourself and then you're probably adding in a savings component with a whole life policy. And that's just not my favorite way to build wealth over time. So that's really the only issue I have with trying to have a policy as an inheritance is did you truly factor in what it's gonna take for you to maintain that policy throughout your entire life right yeah okay good point Rob, thanks very much. If you just 20 minutes moneywise live if you haven't visited us online at all. That website is moneywise the.org you'll find lots of helpful useful in free information there also are radio archives, and much more.

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Today's program is prerecorded, don't call, but don't go away right strategy for your finance your career even your teeth for your getting a Christian foundation and your family maximize your resources to learn how moneywise.org hi I'm very glad I'm here to help you understand how urgent it is to share your faith every opportunity to the eyes of a layman's said these are the days that try men's souls, and indeed they are, no matter where you are in the political spectrum is expected where we are at this moment is based on the service there's no logical explanation for where we are today because it's not logical. Satan blinds the minds of unbelievers, and most Americans are unbelievers, so our entire nation of all persuasions be deceived by Satan. As we sit here right now it's not spiritual warfare and can't be fought with politics in the minds of man they are no consequences that God was politicians. Among his most powerful tools with most of Richard's remaining close.

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Life will never look the same treasure principle is available when you click the store, but moneywise life.they said it with us today is moneywise live your hostess, Rob was more we love chatting with you. Do us a favor if you enjoy this program for help. Perhaps someone else you know would enjoy it as well. I maybe let them know about this radio program in this radio station so they can enjoy. Just a thought. Canton, Ohio hi Melissa, how can we help you in regard to children in college so I went to college and did not fare well in her first master and we got a very large family. We get paid we did that we don't want you count on anymore because it asked actually like terrifying that many can't find it complex so my question is why it doesn't make biblical thing to thing a parent when there are so many children laugh for college at $30,000 a year if they go away like a night.let me have been effecting it that many college where they can however what if they get a personal calendar ship and the only other way for them to make that happen. Parent plus loan where in our 50 and we got hit really hard and passionately started literally all over again. So we are just now starting to tie our stating there because working everything I said.

That way we can cut more towards retirement sure yeah Melissa, I can appreciate where you're coming from and I think the key is gonna recognize that you are stewards of what God has entrusted to you and your trying to be the best steward you can be moving forward to both honor your obligations. Currently, which is your living expenses, providing for your family doing whatever giving you're doing. I'm thrilled to hear you've started become a systematic giver as well as trying to pay off your debt which is all really important and you need to be saving for the future because there are some ways to sit to pay for college, namely, scholarships and grants and financial aid, and perhaps working in the summer getting an on-campus job.

There are not those ways to pay for retirement when you're no longer working. Redirecting your time and energy to perhaps God's next assignment for you and so you need to be thinking about that and the last thing you'd want to do would be to take on all this debt not only for this child but other children coming behind this child, you're them responsible for because the bottom line is with a parent plus loan you are in fact responsible for making the payments even if you have a arrangement where your child is going to make the payments you are ultimately the only person responsible and so if they're unable to do so. Even because they intend to but just for unseen and unforeseen circumstances, they can't. That's ultimately going to fall back to you other than you refinancing or your child refinancing with a private lender in their name but they have to be able to qualify for that they blues the income-based repayment options and they likely have a much higher interest rate because they be just starting out and not have really the ability to qualify for that at a competitive rate. If that all and so you're exactly right. It is going to fall on your shoulders. So I think at this point you will need to really think and pray about what are we willing to do for each child. If were going to borrow how much would we borrow not for one. But for all knowing where ultimately going to be responsible if they can't pay. And the answer may be none. We just don't feel comfortable at that point, we gotta get creative.

My wife grew up in a single-family home and her mom made it clear there was not money there and so they turned their living room into a scholarship factory and she had well over $100,000 in scholarships. By the time it was all said and done. Worked very hard both on campus as well as a prior applying for all the scholarships and grants and getting good grades and those types of things to pay for college, so I don't think we should just automatically assume we need to go to the debt, especially given what you've described in your desire to really honor God with your finances moving forward. Do you follow that the goal is to find other people out there you can go on the cloud track and get a lot yeah they're really arming there's so much more than when she was even doing it. I would go to the first of all, go to Amazon there some wonderful books out there that are updated every year with all of these and will also put in our show notes today a few websites that have tens of thousands of scholarships depending upon the track that there on the major they're seeking.

What part of the country herein, whether you have any unique family heritage things like that where you can look for different types of scholarships. We've done the programs on this in the past. You can search on moneywise live.org but will also put a few of those links in our show notes today for today's program, so be sure to check those out and then spent some time with your husband, thinking through how you're going to approach this.

And then I would really encourage you finally hear Melissa to sit down with each of the kids make it clear to them what your expectations are, what you're willing to do what you're not willing to do so they can know that in advance and then really develop their plan on how they're going to approach college. Listen, thank you very much. We wish you and your family the very best. Thanks, Savannah, Georgia hello Jeff, you have a question today. I will long-term mind. I am still working my wife is retired. Both children, a lot of people are really her forte. We've been able to save $2 million. So my question by long-term care insurance or should I let myself you know just I think you could go either way. Some people would say, with $2 million in the nest egg you could find it yourself. My typical rule of thumb, and this is hard and fast.

This is just a that's all it is is a rule of thumb is 3 million in above is where you would really start thinking about self-insuring. Reason being the costs obviously continue to climb, although if your retirement is invested, it will as well but take for instance nursing home care, which today could cost 8000 a month, or 96,000 a year. If you invested that 2 million and look for a 4% annual rate of return that would only throw off about 80,000. So, I realize you may have other sources, Social Security and other things that could step in, but you're still going to have a lot of those other expenses. Beyond that, that you're going to need to cover and so that's where you could, it's possible that you could run through your assets.

Depending upon your situation. Now the average long-term care need is going to last only about 18 months to three years and so again you could make the case that we should be just fine, and ultimately we don't want to put our trust in our stock portfolio. Anyway, we want to put it in the Lord but I think you're kinda right on the bubble.

There is what I'm saying where you and your wife need to just pray through it, but having a policy that perhaps has a smaller daily benefit just to offset what you would already be able to generate through your own savings and investments I think might give you some added peace of mind. Given that the healthcare costs continue to rise and if there's something that's going to road your assets in a hurry. During this next season of life.

It's going to be healthcare in just about every situation. So that's my best advice I'd probably take a look at it but do your planning within lot long-term care insurance insurance specialist in light of obviously the rest of your financial life. So the factor that in with the policy you select Jeff were glad you called today sounds like you guys are heading in the right direction, we pray.

Gotta bless you. Thanks very much to Georgia and David were going to have to be very, very brief about this give us the they got high points.

Okay sure that got my retirement and the cup that I worked for them moved all my retirement at this over and moved to broker, but I had a 401(k) at the sign company and they have told me that I cannot move the 401(k) until I either actually leave the company in retirement or quit that someone get out of you know is likely not possible. Many companies will require only require you to separate from the company to do a rollover. There are some that allow what is what are called in-service rollover.

But that's not the norm. Most companies will require you to separate from the company and this will all be spelled out in the plan docs in order for you to take that 401(k) and move it out to an IRA. So it's really specific to your particular company and your plan as to whether or not that's possible, and my suspicion is because you Artie inquired and they told you can't that's in fact the case. So I think at this point, so long as you're still with the company with that particular account the 401(k).

The key is just to look at the investment options inside the plan and just make the best decisions you can and that at some point what you separate you'll be able to roll that right out, but you probably not be able to do it until that point. Thank you for quite yet.

If I come across that supersecret way to do it.

You, David will it take down your number and I'll give you a buzz got blessed thanks I would've the secrets are you hiding what you told us our listeners are waiting with baited breath Monday. Stay tuned Monday. The Monday finance secrets from you a lot of holiday lots of calls today on retirement have prepared for retirement and 401(k)s and all of that, but not a whole lot of discussion yet about God's will when it comes to retirement and God's will when it comes to planning for the end of life.

Any thoughts in that regard. Because really, that's our focal point.

Well it is Stephen, you're exactly right. And there is probably some folks listen I know there's some folks listening saying and it be nice to have million dollars in the bank and that's just not me. Recognize that's a lot of us and the key is to be found faithful with whatever God has entrusted to you now is everything wrong with wealth. No, actually not. There was plenty people in the Bible had vast wealth, I think of King Solomon and a host of others and others who really struggled in the key is faithfulness to opportunity what is God putting your hand in how you be the best steward you can be today and in the future and honor God with what he's entrusted to you. Thanks Rob and thank you again. As I mentioned for tuning in for listing of being a part of life live is a partnership between radio and money like you are listed around West times more for you and yours have a wonderful remainder of the day, then join us again next


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