What do Emily the Criminal, Biden, and You have in common?.... A focus on student debt! 

While some students returned to school before the Labor Day holiday, there are many students who are beginning their first week this week. Either way, September marks the first full month of school, from elementary through college, for the vast majority of students. 

I want to focus this post on students in your life who are college-bound or already attending college.  That said, there are 45 million people in the U.S. with student loan debt totaling $1.6 trillion, which is more money than people owe on their auto loans, their credit cards, on any other kind of consumer debt outside of mortgages.

Furthermore, I went to the theater and watched Emily the Criminal in August. The film exposed the structural issues associated with college debt as well as the anxiety that many students and graduates feel when their student loan predicament seems unbearable and unchanging. Check out this Rolling Stone’s review of Emily the Criminal to further pique your interest. I’m excited to see a movie like this on screen because it brings to life real issues and impacts of the student loan debt crisis. 

While President Biden’s student loan forgiveness plan has garnered necessary attention in the last few weeks, it’s also important to focus on the front end of one’s college career because that’s when many financial decisions, including debt burdens, are made and amassed. [Side note: If you didn’t listen to the NYT’s The Daily Podcast on Biden’s student loan forgiveness plan, please do as it shares the history of who bears the brunt of student loan debt as well as who is positioned to benefit.]  

So, as you prepare your family for college, you should be proactive about the financial options available to you. In the WSJ, there is an entire podcast dedicated to how to apply for college financial aid and avoiding mistakes. I’ve shared below my major takeaways: 

• Don’t be fooled. Let me underscore this important point - It's a common misconception that if you get a graduate degree, you're going to earn more than someone who didn't get a graduate degree. That's not actually the case.

• Fill out the FASFA. Whether or not you think you will qualify for financial aid, you should fill out the FAFSA, the Free Application for Federal Student Aid. The worst that happens is that it's determined that you don't qualify for need-based aid, but you still can take out loans, even if a school in the federal government determines you don't have financial need by their calculation.

• Don’t forget CSS. Also, if your child is applying to one of a few hundred, mostly private colleges, they might be asked to also fill out what's called the CSS Profile, which requires even more disclosure than the FAFSA.

• School is an investment. As a parent, you are investing in your kids' future. Just because your kid graduates from college doesn't mean they're going to be earning more than you down the line. So, your ability to repay the loan doesn't change just because your kid graduates college. So, please think through your overall financial health and your financial future before you sign on the dotted line for any loans. 

A Wealthy Girl Corner 

One of our Charisse Says members have shared an upcoming mentorship opportunity with The Information Technology Senior Management Forum (ITSMF). I want to pass on the knowledge to you so that you can share it with any college students in your life. ITSMF was formed in 1996 out of a conversation between a few prominent technology executives who discovered that only 3% of information technology management roles were held by Black professionals. For 25 years, ITSMF has remained the premier national organization dedicated exclusively to cultivating executive talent among Black technology professionals. See these details on how to apply!

Mentees will be connected with a mentor that has similar interests and experience in the STEM disciplines and leadership development.

Share the wealth. If you want to share other opportunities that can be helpful to Charisse Says members and their families, please reach out to me.