Parent Plus Loans, Caveat Emptor with Travis Hornsby of StudentLoanPlanner.com
Hey parents. If you’ve ever needed a healthy dose of reality when considering borrowing large amounts of money for college, you’ve got to listen to today’s episode with Travis Hornsby.
He’s seen over 2000 different borrower outcomes of clients who have come to him and his fellow CFP® and CFA® advisors, through his business, Student Loan Planners.com.
Let’s just say, those outcomes are not usually pretty. His average client has $280,000 in student debt and is coming to him after the fact.
A little-known statistic is that the fastest growing segment of student loan borrowers are folks over 60. That’s right, they’ve got a new “mortgage” to pay off in the form of Parent Plus loans right at the time they are considering their own retirement.
He says they don’t advertise it, but they can do pre-debt planning for grad or professional track wannabes. I’m a financial planner who helps people plan on the front-end to avoid getting into college debt problems, so I think this is a great, great thing.
2. Why he focuses on millennials.
3. How much a parent can borrow using a Parent Plus Loan and the costs for those.
4. What we mean when we say that financial aid officers are not financial advisors, and not a fiduciary.
5. The problem with “free” advice.
6. The process they take their clients through to help them figure out what to do to pay down debt.
7. The implications of being married and why your CPA might not have any idea why you should file separately.
8. What has changed about the economies of certain professions, like pharmacists and who to talk to to get a real idea of the outlook in certain careers.
9. Why he is not in favor of 6-7 year programs that take you straight into your profession.
10. His final piece of advice.
- Student Loan Planner
- Student Loan Planner podcast
- The official Federal Student Aid site for Parent Plus loans
Angie founded Avea Financial Planning and is a fee-only advisor helping people retiring in 1-2 years, particularly PNNL employees, with tax-smart retirement planning, investments & fiduciary financial advice so they can be more confident and live life on their own terms.