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Shining a Light on Elder Financial Abuse

By U.S. News & World Report

Many of us have heard about it or even have our own stories. Often, it is discussed within families and by friends in hushed tones about “so and so” having lost some or all of their savings in a scam or as a result of being victimized.

The “it” is elder financial abuse and the extent of its occurrence and the magnitude of its impact on Americans is troubling.

Once a completely taboo topic, the issue is thankfully starting to get more attention as a new generation gains the unwanted experience of having to tackle the issue with their own parents.

How bad is the problem? To fully address this problem, Americans need to understand this is not an isolated issue which can be swept under the rug. The true scale and scope of elder financial abuse is only now coming into focus. Allianz Life recently conducted its 2016 “Safeguarding Our Seniors” study, surveying family and friends in active caregiver roles or those who could be soon. The study found that more than one-third of active caregivers (37 percent) said the elder they care for has experienced financial abuse with a loss. Furthermore, respondents revealed that elder financial abuse is not an isolated occurrence, with a full 40 percent of all active and potential caregivers confirming that their elder has experienced financial abuse more than once.

[See: 10 ETFs That Pay Sky-High Dividends.]

Respondents also noted the average financial loss to victims was $36,000, with nearly half of respondents saying the effect on the elder victim to be “major loss/financial ruin.” Equally troubling, nearly 90 percent of active and potential caregivers said they also experienced a financial impact from the abuse, with the average cost to them also reaching $36,000 — a direct result of having to compensate for their elder’s loss.

In addition, elders experiencing mental decline are particularly vulnerable. The frequency and financial impact are both greater for elders that have experienced mental declines. Incidence of elder financial abuse as reported by active and potential caregivers is 10 percent greater (34 percent versus 24 percent with no mental decline) and average monetary loss is 28 percent higher ($41,000 versus $32,000 with no mental decline).

All of this data is troubling enough, but beyond the substantial monetary loss, the emotional impact is equally startling. A full half of all caregivers said the financial abuse caused that elder to isolate himself/herself with a 15 percent increase in isolation for elders with mental declines (58 percent versus 43 percent with no mental decline). And unfortunately, this isolation creates added vulnerability for the elder as well as an increased chance for repeat victimization.

Where to start? The data makes it very clear that this is a significant problem and the solution is equally as challenging. The first step is to remove the stigma associated with this issue. Openness on the topic itself can lead to increased awareness as well as greater discussion about how to spot and report elder financial abuse, ideally before any financial or emotional loss is incurred.

One of the best ways to bring the issue out into the open is simple: talk about it. Parents and children should have a discussion as to the current state of their financial situation so either party is able to identify if something is not right. In addition to immediate family, other close relatives and friends, as well as advisors such as family lawyers and financial advisors, can play a key role in offering counsel and keeping a watchful eye out for potential issues.

[See: 10 Questions to Ask Before You Hire a Financial Advisor.]

As we enter into the holiday season surrounded by family and friends, the timing is ideal to begin having these discussions if they haven’t already happened. Keep in mind, this will likely not be an easy conversation as it may represent a potential feeling of loss of freedom and independence for the elder. The conversation should be focused on the added layer of security given the times we live in, rather than taking a tone that can be interpreted as condescending or confrontational. And beyond the initial conversation, keep the lines of communication open. Something as simple as a daily call from a family member or friend can be extremely helpful in discovering potential issues.

What to watch out for. Unfortunately, scams targeting the elderly are getting more complex and difficult to detect. In addition, at times there might be people in direct daily contact with elders who are going to take advantage of the situation for their own gain. As a starting point, here are some basic red flags to watch for:

— Phone calls from someone asking for personal information such as bank account information, credit card numbers and passwords. Often the calls are high pressure, demanding an immediate response.

— Phone calls from someone stating they are a member of the IRS demanding immediate payment based on an alleged issue with taxes. (The IRS will mail a bill before calling and will not demand immediate payment in this scenario.)

— Letters stating someone is a winner in a sweepstakes and asking for information to claim the prize.

— Calls or emails claiming to be from a loved one who is in some sort of predicament while traveling and needs financial assistance.

— Fake charities using emotional pitches asking for donations.

— Unexplained credit card charges and/or withdrawals from accounts or changes to investments that seem out of sort.

— The appearance of a new friend or relative asking for a loan or gift or a transfer of funds.

The Better Business Bureau offers several additional helpful tips and resources.

Creating an environment where the topic of elder financial abuse can be openly discussed is a good first step in addressing this important issue. Hopefully, those discussions will prompt caregivers to develop different systems and networks that can help protect their elders who may be at risk.

[See: 9 Stocks to Buy for the Aging Baby Boomer Market.]

Millions of Americans are entering their golden years — by joining together, there is a greater chance to make a difference and protect our loved ones from financial abuse.

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Shining a Light on Elder Financial Abuse originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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