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Total Financial Solutions: Invest In Your College Education Wisely

The financial professionals at Total Financial Solutions are talking about the recent explosion of student loan debt nationwide, and offering students advice on how to invest in their college education wisely.


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“Student loan debt has, in my opinion, spiraled out of control,” said Jeff Girard, who co-hosts “Total Financial Solutions Safer Money Hour” on KHTS alongside President/CEO Arif Halaby and his son, Logan Halaby. “It’s something that I think is this brooding undercurrent that people are ignoring.”

Collectively as a country, the U.S. is at almost $1.5 trillion in student loan debt, surpassing the total amount of credit card debt and second only to home mortgages, according to Girard and Logan Halaby.

Related: Total Financial Solutions President/CEO Discusses State Finances With Attorney General Candidate Eric Early

“Looking at these numbers, it’s kind of staggering,” said Girard, noting that it’s not uncommon for someone to take out a $55,000 student loan and have the balance swell to $300,000 over the life of the loan. “How is something like that okay? Well it’s more of a rhetorical question, but I’ll tell you, if you set yourself up, you can avoid having some of these statistics plague you.”

It’s vital for students to have a plan long before they’re about to graduate, which Girard believes should begin with realizing that a college education isn’t just a four-year-long commitment — it’s a lifelong commitment because of student loans.

To figure out if a student loan will be affordable long-term for a person’s desired career path, Girard offered a math formula that should be considered before the loan is taken out.

“I’m going to take ‘x’ amount of debt. What (job) can I expect with this degree?” Girard said. “What can a job like that expect to pay you? If you take that number and then subtract the after-tax amount — because you’ll make a gross amount, you’ll pay your federal and maybe state income tax depending on where you are in the country — and then you’ll take that number, that’s the money you can spend, and then …. food, shelter, clothing, maybe a couple of extras, maybe not, and then can I afford that student loan payment? That, I think, is the real question, and maybe it’s a reality people don’t want to face.”

While some people believe it’s vital to go straight to a four-year university from high school to be successful, Halaby noted that this simply isn’t the case, and it is typically far more cost effective to start at a two-year community college and then transfer.

“No one really cares where you did the general ed stuff, the intro stuff — that all can be done pretty much anywhere,” Halaby said. “I went the route of taking classes here locally at College of the Canyons … because you still get the education, but for a much better cost. Especially considering how much tuition costs at CSUN, and that’s on the low end of a state school.”

“I encourage you to be open-minded to the fact that you can take on a lower-cost route and not take on these big student loans,” Girard added.

High school students can even take certain classes at their local community college and have the credits double both for their high school diploma and their future college education, another option that Halaby took advantage of as a high school student to save both time and money in the long run.

“In the high school years, you’re using a community college format and a campus where you’re getting credits not only for your high school classes and requisites, but you’re also dipping into the college credits at an early age,” Girard explained. “That, in my opinion, is brilliant.”

Another advantage to taking general education classes at a community college is that it gives students more time to determine what degree and career path they want to pursue, according to Halaby.

Halaby added that this route allows students to try out certain elective classes before committing to something they may decide isn’t for them a year or two into their four-year university education — or worse, after they finish school and receive their degree.

“Seventy percent of the people with a college degree do not work in the field in which they studied,” Girard said. “Yet they’re carrying the debt for the degree in which they earned, so how does that make sense?”

Girard concluded, “Education is key. We’re not saying don’t go out and educate yourself and invest in yourself. But do it wisely.”

Ed. Note: This article is a KHTS Community Spotlight based on the latest “Total Financial Solutions Safer Money Hour” radio show on KHTS AM-1220.

Total Financial Solutions offers assistance with preparing for retirement in Santa Clarita and the surrounding valleys. Santa Clarita financial professional Arif Halaby, a Certified Estate Planner, and Total Financial Solutions staff work with people of all ages, helping them protect, grow and preserve their assets through an individualized approach. As a well-known financial professional, Arif Halaby is also the host of “Total Financial Solutions Safer Money Hour” on KHTS AM-1220. Launched in 2004, the show offers listeners retirement planning tips and guidance for dealing with today’s ever-changing financial needs.  

Total Financial Solutions, Inc.

24322 Main Street

Newhall, CA 91321

661-753-9683

800-990-7344

Total Financial Solutions – Newhall

https://www.youtube.com/watch?v=-7zBNZSkGC4

Arif Halaby, Total Financial Solutions, Financial Planning, Planning for Retirement, Retirement Planning

KHTS FM 98.1 & AM 1220 - Santa Clarita News - Santa Clarita Radio

Total Financial Solutions: Invest In Your College Education Wisely

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