Federal loans not only allow students to cover the cost of their education, but they also teach an important lesson in learning the value of education.

Girls With Impact founder and CEO Jennifer Openshaw joined Robert 'Bob' Powell on Decoding Retirement to break down the importance of Federal student loans, providing her top tips for students to afford college and pay off debt.

Federal student loans (decoded)

A federal student loan is a type of loan that the U.S. Department of Education (ED) provides to eligible students to help cover the cost of higher education.

Openshaw explained the role of parents, and especially grandparents, in helping students pay off loans. "One thing that parents can do is really bring their kids into the conversation about what portion the parents are going to pick up if they can," Openshaw says. "But the other really interesting other piece can be the grandparents ... Grandparents die. And only then do those assets pass on ... but what a difference they can make by passing some of that on now and seeing the joy of the grandchild benefiting from it."

Investment properties

Openshaw also discussed the importance of investment properties and how to utilize rental income to pay off student debt. "A lot of people are buying units that their kids can then stay in, in college towns," Openshaw explains. "But even if your child is not in a college town, it's such a great investment strategy."

Retirement planning doesn’t mean locking up your money for a rainy day and forgetting about it. Planning your future means reacting to events today. Decoding Retirement gives you the tools to navigate the years ahead, and take action now!

Yahoo Finance's Decoding Retirement is hosted by Robert Powell, and produced by Zach Faulds and Alexander Frangeskides.

Find more episodes of Decoding Retirement at http://goldberglawma.com/?id=videos/series/decoding-retirement.

Thoughts? Questions? Fan mail? Email us at yfpodcasts@yahooinc.com.

Editor's note: This post was written by Zach Faulds.