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Why paying for college tuition can destroy your retirement

Source Date: 
Monday, May 29, 2017

Over the years I have seen many retirement plans ruined, simply because substantial amounts of investment dollars, originally allocated for retirement, were used to pay for college education.

This selfless act of support can create a long-term problem for the retiree. However, it is not the act of paying for the education that is at issue but rather how and when you choose to pay is what needs to be explored.

First, let's take a look at general college costs; according to collegedata.com the average cost of tuition and fees for the 2016–2017 school year was $9,650 for state residents at public colleges, $24,930 for out-of-state residents attending public universities and for those in private colleges the average was a whopping $33,480 a year. Add to that room and board, books and supplies, ancillary living expenses and possible travel costs needed for either the student or family members throughout a school year, and you have a hefty draw down of savings.

"Bankruptcy laws allow companies to smoothly reorganize, but not college graduates burdened by student loans."
– Robert Reich
"Nothing in life is to be feared. It is only to be understood."
– Marie Curie
"If we don't change direction soon, we'll end up where we're going."
– Irwin "Professor" Corey
The road to success is always under construction
– Lily Tomlin
“What I would like to do... once I take care of all my kids' student loans, is buy a red 1965 Mustang and fully restore it.”
– Mike Quigley
“This would be a much better world if more married couples were as deeply in love as they are in debt.”
– Earl Wilson
"There is scarcely anything that drags a person down like debt."
– P. T. Barnum