How The Student Loan Debt Crisis Affects YOU
The latest statistics show that our country recently reached $1.3 TRILLION in student loan debt – and this is nothing to cheer about. Even if you don’t have children, high levels of student loan debt can still affect you.
According to the most recent study of financial aid by the U.S. Department of Education, nearly 70% of students graduating with a bachelor’s degree last year took on student loan debt to do so. And the average debt for those carrying student loans is currently $29,400, which represents a 20% increase just in the past 4 years.
When you consider the fact that this number represents nearly 80% of the average annual earnings of a young adult in America, and 40% of Americans don’t even earn that much in a year, you can see how this may be a problem for our country, moving forward.
This means that young adults who graduate with student loans may be unable to do basic adult things like buy a home, start a family, or even support themselves. When saddled with crippling amounts of debt, young people entering the work force may have to put things like this on hold, meaning less money flowing into the markets, fewer dollars entering the economy, and a smaller percentage of incomes going to support businesses, as a larger and larger percentage of earnings goes to feed the student loan beast. As this video explains, student loan debt has already started to affect the housing market.
As you can see, even if you’re not a parent, high levels of debt can affect the overall economy – including you.
And of course if you are a parent of college-bound children, the picture looks even worse, as many students may end up moving back into the family home after college – rather than being able to afford a home of their own. Some parents go into debt themselves, to help cover the costs of an education for their children. And many end up tapping into or depleting their own retirement savings to help their children pay for college without incurring unmanageable amounts of debt. In some cases, families have even been bankrupted by college debt, or at the very least, found themselves unable to retire when they want – or even at all.
So what can you do about this crisis? The only way to make a difference – both for your children and for the future of our country – is to take responsibility and develop a solid plan ahead of time, so that future generations are not burdened with the aftermath of our current debt bubble. It’s time to get creative, and seek out and apply all available strategies to position your family to be able to pay for college without incurring massive amounts of debt.
If you have children that are planning to go to college, we can help you avoid or minimize the issue of excessive amounts of student debt for your family.
In fact, to help you plan properly for college expenses, and make sure your family is not taking on an inappropriate amount of college debt, this month we are offering a limited number of FREE 1-on-1 sessions with one of our college planning specialists. We will review your college plan at no cost to you, and help make sure you are on the right track to paying for college in a manner that is comfortable for you and your family.
To reserve your FREE spot today, please email Melanie at email@example.com, or call 614-536-0246 and mention this blog post.