Student Loans with Joanne Sullivan
At the Financial Gym, we have a Diversity, Equity Inclusion and Belonging team that works on various initiatives for the Gym and in 2022, they launched the Exercising Empathy Series where they focused on presenting one speaker a month to educate the team on various subject matters that could impact our clients. I personally attended these sessions that were held during our weekly professional development time and found each one incredibly helpful and informative and I’m excited to share some of those speakers with you on this podcast. Joining me today is Joanne Sullivan, Director of Student Financial Services, at Saint Thomas Aquinas College to talk about student loans. Now, I have done numerous podcast episodes about student loans over the years, but none quite like this one. This episode is really focused on helping families and students know what they’re signing up for when they sign their student loan packages, the tough conversations families should have and how the school you’re looking to attend can help you with the process.
What are we drinking?
Joanne- A Smoothie, Water, & Iced Matcha Latte
Shannon- Black Cherry Schweppes
Podcast Notes
When Joanne graduated from college, her path forward wasn’t clear. She’d studied English and Education, but didn’t want to teach. She went into business for a while, but once the kids came alone, she decided to stay home. Once things stabilized, she got a part-time, counselor-type job. She’s a problem solver at heart and wanted to progress in the company. She leveled up and eventually became the director. Now she leads a team of folks who are passionate about helping people in the complicated space of paying for higher education.
A college education is likely the second-highest investment a student will ever make in their life. It’s important to be a good consumer and a strong advocate for yourself. This decision is laced with emotional complications as well. With large price tags and high emotions, creating a plan is vital.
For the majority of Americans, higher education is a huge goal. Other options and programs are becoming more common because of the cost of education.
63% of students graduate and say they weren’t clear about what they signed up for. Trainers at The Gym hear this from clients frequently.
Student loans will follow you for your whole life, so understanding the impact of the loans is incredibly important before taking them out. It’s a collaborative effort to make a game plan to fund higher education.
Ideally, money conversations are happening at the kitchen table as early as five. If having these conversations is new, this is the perfect time to start.
You have to make a game plan for paying for college on the whole. When a student is taking out loans, there will be a max they can take out, and often, parents will also need to take out loans or consider other options. Everything adds up. In addition to tuition and boarding, you have to consider travel, books, and computers. It all adds up fast.
When thinking about scholarships, every little bit helps. There are a number of scholarships out there for $500 or $1000, and each one will help with the cost.
Student loans are the one type of financial instrument that you sign up for but don’t think about for years. It is important to be aware of the loan types. Some loans start accumulating interest as soon as they’re disbursed.
Ensure you’re filling out the FAFSA application, and make adjustments if needed.
There are options out there to pay for school. People are passionate about supporting students. Look at the school’s website and opportunities at your high school. If you attend open houses, keep an eye out for presentations from the Financial Aid office.
When considering private loans, remember those companies don’t always have the best practices, and they don’t qualify for government pause or forgiveness programs.
When deciding on a school, Shannon always recommends having a few options, the ‘reach’ school, ‘mid-range’, and ‘safe’ picks financially. If a lot of private loans are required to pay for school, really consider that decision. Gather as much information as possible so your family can make the best decision.
Once you’ve been accepted to school, the various aid packages will arrive in the mail. Look at it thoroughly, keeping an eye out for the net price. Once you know what is offered, it’s time to start advocating and see if there is any other funding that can be provided. Some schools offer payment plans.
Loans are not the only option. Planning is key. You have to make good decisions as a family, and keep the emotions out of it.
Paying off student loans can be a 15-20 year journey, the more flexibility you have, the better you will be.
In addition to her work in higher education, Joanne also has a passion project called This Uncommon Journey, which focuses on helping families with children with special needs. Branching from her experience raising a special needs child, This Uncommon Journey is trying to provide the best information, data, and resources to help care for their loved ones.
Takeaway: My biggest takeaway is the importance of managing student loans before you even take them out. Just like it’s easy to lose weight when we never consume the calories, it’s easier to manage student loan debt when we’ve avoided unnecessary debt to begin with.
Financial Aid Resources
Connect with Joanne
Website: stac.edu
If you have any topics you would like me to cover on this podcast, or if you’d like to get in the financially naked hot seat, I encourage you to email me at Shannon@fingyms.com, or join the private Martinis and Your Money Facebook group, and let me know what you want to hear.
The beginning of the year is a perfect time to set goals and make plans for where you want to go in the next year. You may not actually accomplish all of your goals, but I’ve witnessed amazing results happen over the last 10 years when people set out to make financial health a goal of theirs. A financial health journey can be long and feel lonely at times, but if you or someone you know would like to have a supportive best financial friend along for the ride, please check out financialgym.com. With memberships starting as low as $35 a month, we are the inflation-proof source for financial wellness for anyone. So head over or send friends to financialgym.com and schedule a warm up call today. As a reminder, our warm up call team is staffed with amazing and current Financial Gym clients that can answer any of your questions about our program without any pressure to join. We know that Financial Gym is an investment and we want to make sure that you’re confident in the choice you’re making before you commit.