Happy Monday to you and I hope you had a great weekend. Market Mondays is a weekly blog intending to educate you on wealth building principles and give you stock market updates brought to you by Legacy Investing & Wealth Management. Last week we talked about the importance of preparing your kids for college with no student loan debt. I want to continue on that subject this week.
One of our friends stopped by recently and I was really encouraged with her testimony and how she was able to send her daughter to school with NO STUDENT LOAN DEBT! She was able to get renewable scholarships from many different sources to help fund her daughter’s education. I was so proud of her for making sure her daughter’s education was taken care of without having to rely on student debt. She started the process early which is absolutely necessary to first of all know all that is out there as well as meeting the various application deadlines.
My wife and I were both blessed in that we received great financial aid packages and scholarships with the help of our awesome parents but we still had to take on some student loan debt. After I finished college I had to file a forbearance because I was making entry level money and did not have enough to pay for food and other necessary expenses. For a while I was discouraged that I had this loan debt and no real way to get out of it. Both of us eventually landed some great employment opportunities and we were able to send in extra principal payments. From that point we paid the loans off fairly quickly and a lot earlier than anticipated. We had this huge cloud of debt hanging over us suddenly erased and we couldn’t have been happier. Our story with student loan debt had a happy ending but many people have shared horror stories with us that we hope you never have to go through.
Although the interest rates on student loans is usually not too bad, it is one of the worst types of debt to have because it can never be charged off or deleted off of your credit report. Just about all other types of debt can be “erased.” So if you have some hard times and hit rock bottom, no trying to file a bankruptcy to get rid of that student loan debt. They’re stuck with you for life or until you pay them off. Why would you want to take a chance on a debt that cannot be erased?
There are ways around having to take on this evil type of debt. Scholarships and grants! God bless them both. The good thing about looking for scholarships/grants is that there are soooooooo many organizations and companies that give money for college students. People with money love helping college students and funding their education. You just have to do the research to find out where the money is, and which ones you are eligible to apply for as many of them have restrictions. Here is a quick and easy process for applying for financial aid.
There is a government form online called FAFSA and you can go to www.fafsa.ed.gov to fill out the form as early as possible. Your form will be processed and you will get a student aid report back (SAR). You will then want to call the school your child is attending to find out their next steps. Usually they will also receive a copy of that SAR letter and they will generate an award letter. After that you can start applying for as many outside scholarships and grants as possible as some of them will have required that you first completed the FAFSA to be eligible for their own awards. Hope this info helps someone.
In Market News
The S&P 500 did exactly what I thought it would do….go down, what else lol. As we start this new week it is down once again and looks like it wants to retest the 8/24 low of 1867, which is only about another 20 points or so away as I write this blog. As it goes lower there is a good chance it can keep going and it’s really anyone’s guess as to where it will stop. A level I mentioned before was 1820 and it was the October 2014 low when we had the ebola scare in the US. As you can see the market hates periods of uncertainty (which we seem to always have at some level), pandemics or other scares which threaten to slow or put off consumer spending.
As long as the US continues to do OK I think at some point the selling will stop and the uptrend will resume. With so much pressure coming from sagging markets overseas, it could send us into a mild recession but I think we are doing well enough right now to avoid that. I do expect at least a mild recession somewhere around the transition of the new president as that will definitely bring a period of uncertainty to the markets.
Disclaimer – Legacy Investing & Wealth Management LLC or any of its advisers are not liable in any way for any losses incurred through trading by readers of this weekly blog. Any information or strategies of trading suggested here involve risk of capital loss and this weekly blog is not considered investment advice. Individuals who invest in securities are solely and completely responsible for any and every outcome that may occur.