Student Loans. Those very words can strike fear into the hearts of young adults deciding whether or not to pursue higher education. Not only students, but their parents as well. As having a degree from a college or university continues to become the norm, more and more Americans have had to face the fact that they will have to take out loans from institutions.
The following excerpt from Jordan Goodman and Bruce Mesnekoff’s book The Ultimate Guide to Student Loans discusses options for handling student loan debt:
“More than half of all parents surveyed- 55 percent- worried about the cost of college and say their children may have to make compromises in terms of their quality of education, according to Fidelity Investments’ College Savings Indicator study. (www.fidelity.com/inside-fidelity/individual-investing/college-savings-report-card).
Most parents don’t want to saddle their kids with significant debt, but 43 percent don’t think they can get a big enough student loan to pay all the costs of college. To deal with that shortfall, the Fidelity study shows that parents expect to take a variety of steps, including:
• 54 percent expect their kids to take online courses for credit.
• 54 percent plan to ask their child to work part-time during school to help pay expenses.
• 50 percent will ask their kids to live at home and commute.
• 40 percent will encourage their child to attend a public school.
• 23 percent will encourage their child to graduate in fewer semesters.”
As you can see, it can be a hard line to walk. On one hand, parents don’t want their kids to struggle with massive debt, but on the other hand, they can’t afford all the debt themselves!
There are many options and compromises that can be made between parents and children that can help make loans less daunting and more practical. If students are willing to make sacrifices and understand that their parents are taking on a large burden, it is possible to reduce some of the costs.
To learn more about ways to handle student debt through investing, applying for the best loans, and paying them off quickly, check out The Ultimate Guide to Student Loans.
The book is available for purchase on Jordan Goodman’s website moneyanswers.com as well as amazon.com.