Forbes: How do you help your children avoid university education loans? | economy

In light of the escalation of the university’s university debt crisis in the United States, which, according to Forbes estimates between 1.6 and 1.7 trillion dollars, education experts warned that the next academic year may witness the issuance of new loans worth 90 billion dollars, despite the legal doubts that surround the exemption plans and rescues.

These warnings come at a time when the US Department of Education lives major disturbances, after it was announced that it will lay off half of its employees, in light of the freezing of the SAVE -ENG payment by a judicial decision by the Court of Appeal.

Amid these turbulent atmospheres, Forbes has launched a set of practical advice that can help families – including Arab families residing abroad or interested in similar educational models – to avoid fatigue of children with university debts, especially if the costs of higher education in their countries or when going to study abroad.

1. Start saving early

Claudia Winzal, Deputy Assistant President of John Carroll for Financial Affairs, recommends the necessity of early savings for university education costs, considering that opening an account for educational expenditures (such as 529 plan in the United States) is an effective tool to reduce the burdens in the future.

“Even saving in simple amounts per month can make a big difference when children reach the university stage,” says Winzl.

In some states, such as Indiana, taxpayers get a 20% tax discount on their annual educational contributions, equivalent to 1500 dollars of exemptions when the maximum contribution.

2. Choose the university carefully

Jack Wang, Wealth Adviser at Innovitiv Wilth Mansong, stresses the importance of choosing universities on rational foundations, not only reputation or classification.

“There are good universities that do not have famous names but are much less expensive,” says Wang.

As for the university education consultant Daniello Omali, families are advised to determine the potential professional specialization and path of the student before choosing the university, to avoid continuous movement between universities and debt accumulation.

“Every change in the path or university means additional costs and possible loans.”

3. Teach your children the basics of money

From the point of view of Dr. Peter Earl, an expert at the American Economic Research Institute, promoting financial culture at an early age contributes to making sound financial decisions during the university stage.

This includes teaching children how to manage the budget, understand the effect of debts on their future, and think about alternative paths such as dual university courses, academic equation, or studying in community colleges to obtain study units at a lower cost.

Earl warns: “The student must know that the average debt of academic loans in the United States is about 28 thousand and 950 dollars per student, and this value often increases,” Earl warns.

4. Encourage work while studying

William Gogok, an assistant professor at Carnegie Mellon University, believes that students who work during their university studies have better financial results after graduation.

It is recommended to search for jobs inside the campus or in nearby institutions to cover the basic expenses and reduce dependence on loans.

“The work not only reduces financial pressure, but also helps to build a network of professional relationships,” says Gogotk.

5. Take advantage of scholarships

James Lewis of the “National Association of Secondary School Schools” notes that filling in the federal financial support request is considered an unacceptable step, even if there is no need for a loan.

It also draws to the presence of 1.7 million special scholarships in the United States, at a value of more than 7.4 billion dollars, that students can obtain in multiple fields such as sports, technology, arts, and community service.

“Do not assume that you are not qualified. There are grants dedicated to students throughout the stature, for example, or for certain talents. The most important thing is to start early research and present heavily.”

In the Arab context

While the report focuses on the American model, the lessons are applicable in Arab contexts, where the costs of private university education are increasing, and dependence on banking or family financing increases.

Preparation, the selection of university programs intelligently, partial work, and the promotion of financial culture are steps that can contribute to building an academic future without burdens, whether within Arab countries or in international scholarships and study.

In light of economic crises and inflation, financial planning for education has become an urgent necessity, not just a choice, and families must start today, to avoid tomorrow’s debts.