“We have over $50,000 in student debt. Now what do we do?” asked a bewildered couple with their daughter who had just graduated from college. “Our daughter is earning $42,000 a year and is in no position to pay her rent and the loan interest.”
Most of us have heard that the student loan debt in the United States is around the $1.3 trillion mark. This is divided upon many families – both young and old. At present, the $1.3 trillion figure is increasing, rather than decreasing. The above mentioned situation with the couple and their daughter is not as uncommon as one may think – “unanticipated student debt”.
Whether or not a family takes on loan funding as a means to fund their child’s post-high school education is theirs. Figuring out the best way to pay for college is often a challenge. There are pros and cons to this decision. One of the truly unfortunate parts is that many households do not realize they are accumulating so much debt. In addition, they often do not expect the burden that paying the loan back will poses on their family and the stress this creates.
Student loans need to be paid back. It is, as you can imagine, very, very important to understanding how the loans your child signs off on actually work. Just as critical is to make sure your student grasps how paying the interest and principal will impact their future life style.
Hi and Welcome to the Parents Planning 4 College Family! For years we have been helping families tackle their unique college preparation challenges. We can help reduce your stress and make better quality decisions - and save you a lot of money!