"Your Money, Your Future", Carmen Johnson, Financial Educator

Today's Reality on Student Loans

This is it! The day you have been waiting for. Your eighteen year old has graduated from high school and is headed to college. You couldn’t be more proud. Sure, you and your spouse have saved a few dollars here and there just for this occasion only to learn that what you had been holding on to isn’t nearly enough to even cover books.

Still excited and determined your child runs home with a FAFSA form. The Free Application for Federal Student Aid. This form, for some, can be the beginning of the end. Basically, after completing the application and submitting it back to your child’s school of choice your information is shopped around to different banks until funding is approved. Note! I said YOUR information.

What most parents don’t know or even expect is that they may have to co-sign or become the primary signer for their child’s student loan. Reason, the economy has changed and the days of bank lending money to persons with no or limited credit history is over.

So what’s the solution? That’s something that you have to decide. Are you and your spouse in a financial position where you can take on more debt? What are the long term effects that this can have on your credit? Is your credit even up to par to act as a co-signer on a student loan? What other loan or funding options are available for your child? These are all questions that you can consider. I know we love our children but going in to debt for them may not be the answer.

Until next week this is Your money, Your future, I am Carmen Johnson, your Financial Educator and the Founder and CEO of the Katie Able Foundation.

Please check us out at Katieablefoundation.org and remember, Do something to justify your Existence, TOGETHER we can create the future!

"Your Money, Your Future" with Financial Educator, Carmen Johnson

What are your financial Goals ?

This week’s financial tip is putting together your financial goals.

At this point you have your monthly budget and you have a pretty good idea what your net worth is. By having your budget and your net worth, you have the tools needed to set your financial goals. Your financial goals can be whatever you want them to be. Perhaps it’s a new car or vacation. It could be repairs on your house or it could be catching up on all your bills. In order to develop good sound goals you must be disciplined and be ready to set and implement your goals. This will make you feel very empowered and in control of your life with your finances. A change in behavior can go a long way in reshaping one’s finances through a sound budget and financial goals. Writing down your financial goals and make them achievable and ways to reach them. Commit to a sound plan and follow through with it. Next you need to prioritize your goals and if they are short term or long term.

Next create a Financial Goal action plan. This action plan identifies the steps needed to make these goals reality. Make sure in your action plan you think about what is needed to accomplish your financial goals. The more detailed and refined your action plan the more successful you will be accomplishing your financial goals. Make sure your goals are realistic and achievable. Financial goal setting allows you to actively work toward achieving your goals you want, to manifest them through action. By learning to calculate your budget, net worth and you financial goals you will have created a solid knowledge base and a foundation for financial health.

Until next week this is Your money, Your future, I am Carmen Johnson, your Financial Educator and the Founder and CEO of the Katie Able Foundation. Please check us out at Katieablefoundation.org and remember, Do something to justify your Existence, TOGETHER we can create the future!

Athletes Drop Out Rate a Crisis in the Making

Dr. Stephen Jones

Springfield, Pa. According to Dr. Stephen Jones each year more than 50 percent of African American students drop out of high school and college. This has a significant impact on athletes who play sports. The drop out rate is greatly affected by poor college preparation and study skills. The lack of academic preparation is evident in middle school and high school. Too often athletes are accepted to college without the preparation they need to graduate. The student athletes’ athletic prowess is valued more than their intellectual abilities. Some athletes are also blindsided when they uncover the huge academic deficits when they start college classes. This crisis will continue because of the abundance of athletes who can replace the athlete who is in academic difficulty.

This problem must be attacked head on. Athletes deserve to be prepared to succeed at all levels. The NCAA requires colleges to have an academic support center. Unfortunately often the academic gap is too large even for the tutors that are assigned to students. Although these students have graduated from high school these students arrive to college academically three and four years behind their peers. Middle schools and high school students must get academically caught up prior to enrolling in the college. Many of these students are coming from schools that are not making Adequate Yearly Progress according to the standards set by No Child Left Behind. There are some very basic elements of the education process that are critical for students to succeed in college and they include the ability to read and compute.

This crisis is not one that we can ignore. Too many extremely bright African Americans are ending up in prison. This includes former college athletes who do not have a degree. Every so many weeks it seems that there is an article about some athlete who is escorted into a court room and sent to jail. This is especially detrimental when they leave a stable wife and children to make it by themselves. This foretells a disastrous educational outcome for their children who cannot afford to attend the better schools.

Some organizations and colleges are tracking the exceptional student athlete as early as ten and twelve year old. Yet attention and devotion to ensuring that they maintain high levels of academic performance is given little attention. It seems that there is a viscous cycle of poor study skills and academic preparation that’s repeated in inner city communities throughout the country. A fundamental academic requirement must be established for athletes early in their K 12 experience. Colleges and school districts must make a greater commitment to these students. There must be a break in the pattern of the deepening despair that has become a viscous cycle for so many athletes who do not graduate. Too many families can point to athletes in their family who have never competed a high school diploma or college degree.

Dr. Stephen Jones is a nationally recognized author who has written the “Seven Secrets of How to Study and the “Parent’s Ultimate Education Guide.” You can contact him at 610-842-3843 and at stephenjoness@rcn.com or visit http://sevenbooks.net.