This Week at Rotary
At last week’s Salem Rotary Club meeting, we welcomed financial planner John DeLorey, a college planning specialist with more than 30 years of experience helping over 5,500 North Shore families send their children to college without going broke. A graduate of Boston College with a degree in accounting, John lives and works in Newburyport and is the proud father of two children — MaryRose, a junior at Emmanuel College, and Matthew, a 6th grader in the Newburyport public schools.
John shared a candid look at the challenges facing students and families in today’s higher education landscape. Currently, 43 million borrowers owe billions in student loans, with many already overdue and at risk of default. He cautioned about unscrupulous companies in the industry, some of which have been fined for unethical practices, as well as lenders who earn commissions based on loan amounts and then sell personal data to list companies.
John noted that only about 50% of students graduate within four years, despite colleges promoting six-year rates to make their statistics look better. The decline in international students, combined with underperformance and overcharging by some institutions, adds further strain. Additional pressures come from technological shifts, such as the rise of Zoom learning and AI, as well as government policy changes and reduced Pell Grant funding.
The cost of education has risen an astonishing 53% since 2020, and student loan debt remains one of the few types of debt that cannot be discharged through bankruptcy. He warned that these financial trends will likely worsen the student loan crisis, especially with moves toward deregulation of education. He also explained how some schools offer scholarships knowing that a portion of students will be unable to meet the renewal requirements after their third year, further increasing financial burdens.
John’s presentation was an important reminder of the need for informed, strategic college planning — and of the value of professional guidance in navigating one of the most significant financial decisions families face.
