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Welcome back everybody there -- growing fears this morning that student loan debt may be the next big economic bubble to burst.
US graduates are sitting on more than one trillion dollars in student debt.
And for the first time in history that is more than we go on all of our credit cards.
So in today's take charge consumer protection segment we wanted to give you some tips to get that particular debt under contrasts.
To Sandra -- I want to get it right told Rihanna.
Founder and CEO of bell rock capital the author of don't by the bullets with us Cassandra thanks for joining us how close was -- I have pretty close out connector that let me ask you about tips that people may not know because July wanton.
The interest rate on many student loans will not only increase it is expected to double.
What should they do right now.
Well yet is expected to double there's a possibility is that won't if congress.
Passes an accident to make sure that it doesn't double.
People should be looking at alternatives.
For paying down that debt quicker.
Tapping in to home equity if possible if that exist for you.
Would be a great way to do that considering that home equity loans and and mortgage rates are so cheap right now.
But a lot of people you don't have that equity in their home -- let's face it a lot of people are sitting on homes that are worth.
Less so they may not happy that that are there other options.
The other option would be to look into tapping -- your 401K.
And taking along from there.
That would be an alternative unfortunately though.
Other than that it's really a question of you know all you can do is is continue to pay on it.
And not get yourself into more debt one of the things that has me very concerned is the number of younger parents out there who are putting their kids into private schools and spending thousands of dollars a year before the child even gets -- to college like there's been a lot of stuff written about parents were borrowing even for kindergarten.
Opt in private schools and I know your your big proponent.
A public school as an option but.
If a parent wants to do that are there any special rules for borrowing let's say from your retirement account.
Up for education expenses.
Well you can certainly take loans out for for various.
Needs out of your retirement account.
You need to look into what is best for you with regard to that and understand that if it is coming from specifically -- for a one day.
It's a form of paying yourself back over time and and that's okay.
You can -- also an education IRA as well that would be something that you could start to do even before you have a child.
But again I really have a proponent of not putting yourself into that position because it's.
It's going to hurt yourself in the long run to save for retirement because we all now.
That ultimately we can't rely on Social Security being around and and supporting us so.
Well -- really if you are younger.
-- ultimately your message is get -- she's very strong due to breaking news I have to leave it there but I think your point about being preventative and -- -- of in terms of putting money away earlier for education is a great idea will take that -- for today's take charge thank you so much.
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