According to recent reports on the financial situation that American college students face, it’s not looking too good for them. They have in excess of $1 trillion in debt. While not all of that debt comes from student loans, they’re the main issue.
It’s an astounding number. In a society where we tend to tell all children to go to college to get ready for the working world, we’re seeing students take on debt at record levels to make that happen.
Plus, not all students live out the American dream that they’re sold when they show up on campus. Students do not always get the jobs that they need after graduation. And it’s even worse for students who do not graduate. Those loans do not go away.
“Enrollment was skyrocketing, but a lot of those students didn’t get their degrees so their income prospects didn’t increase, but they still incurred the debt,” said one financial expert.
What does this have to do with you as you do your estate planning? Maybe you’re thinking of ways to leave money to your heirs. One way to do it is to create an educational trust. This sets money aside specifically for tuition and related costs so that your children or grandchildren do not have to face this overwhelming debt that so many of their peers have. The trust not only puts them through school, but it helps save them from a financial catastrophe.
If you want to get started on this process, you need to know exactly what steps to take to craft the right type of trust for your family’s needs.
