Let’s face it: The cost of a college education is quickly spiraling out of control. Whether you’re still paying back your own college loans or facing the prospect of helping your children pay for theirs, there is no escape from the essentialness of college – or from the huge price tag that comes with it. Because college is pretty much mandatory for giving us a competitive edge in the working world, we’ve gotten to a point where we’re willing to shell out anything and take on any amount of debt. These decisions aren’t always so smart.
How college debt turns even the smartest among us into suckers:
- Banks are the real winners of high tuition bills: Most students cannot afford the soaring costs of tuition out of pocket, so they turn to banks to finance their debt. Consequently, banks get to laugh all the way to … well, the bank. They are able to fleece students and families, charging arbitrarily high interest rates that aren’t even necessarily based on market rates.
- The only way to take on debt responsibly is to avoid traditional banks altogether: Although it may seem unbelievable, there is a way to avoid traditional banks for college loans, and it starts with a whole life insurance policy. With a whole life insurance policy, you can borrow against your policy’s cash value to fund whatever you’d like, including college tuition bills.
- You need to be able to set your own repayment terms: When you access the cash value of a whole life insurance policy, you set your own repayment terms because you are your own bank. That means that if you or your children aren’t in a position to repay loans immediately after graduating (a very real possibility in a still-weak job market), you don’t need to start repaying that loan until you are ready.
- You need a steady cash flow to get through school: One of the worst things that could happen while you or your children are in school is to run out of money before you graduate. School costs are continually rising, and you need a steady cash flow to carry you through. A whole life insurance policy, with a cash value that grows continuously, is the answer to this very scary possibility.
You don’t need to fall into the college tuition trap that has become the banking industry’s bread and butter. You need to avoid banks altogether, so you can set your own repayment terms with your college loans and generate a steady cash flow that will get you and your children through school.
To learn more about how to use a whole life insurance policy to fund college, visit Paradigm Life’s Life Insurance as a Cash Flow Resource.