The Financial Planning Association of New York and the School of Continuing and Professional Studies hosted their 10th annual Financial Fitness Workshop on Saturday. The public event kicked off National Financial Planning Week, which features certified financial planners and attorneys who lead several sessions on topics that range from budgeting and creating a financial plan to constructing an investment portfolio and planning for retirement.
For the second year running, the workshop included a free student session titled “Managing Your Student Loan Debt.” Led by Rhea Friedman, retired New York State judge and current SCPS adjunct professor, the session instructed students how to fund a college education without breaking the bank.
Friedman encouraged students to finance their education through scholarships, grants and section 529 college saving plans, in addition to whatever they can pay out of pocket. However, in the event a student has to take out a loan, she warned against private loans.
“The problem with private loans is that the interest rates are horrendous and almost always require a consigner,” Friedman said. “Private loans are not dischargeable. You are stuck with them. If you haven’t taken out a private loan [then] don’t. The collection agencies are ruthless.”
Friedman’s advice struck a chord with audience members, such as a Steinhardt graduate Xuan Feng.
“I have already taken out loans and I’m in the process of paying them back,” Feng said. “But I think that in the future when I go to graduate school I will have a better
understanding of what loans to avoid.”
Regardless of the type of loan, Friedman stressed the importance of not waiting until after graduation to start thinking about repayment.
“All that money you are paying back, you could be using for something else,” Friedman said. “Paying off the loans can cause you to defer major life events, like marriage or buying a house.”
To help with the daunting task of financing higher education, Friedman suggested meeting with a financial planner who will offer professional and, yet personalized advice.
“Everyone has a specific need and that is where a financial planner comes in,” Friedman said. “If you take one thing out of here today, you should work with a financial planner and the earlier you start the better.”
All the workshop presentations can be found on FPANY’s website, along with information about other Financial Planning Week events taking place during the first week of October.
A version of this article appeared in the Oct. 1 print edition. Deborah Lubanga is a contributing writer. Email her at [email protected].
