It's time for your child to go to college, and now's the best time to talk about how much it's going to cost. Many people go into college not understanding the full impact debt can have on them later. Focusing a little on the expenses now can help you and your child save money later.
Consider this: The average cost of schooling at a state school is approximately $78,000 for a four-year degree. At private schools, it's close to double that. The class of 2016 had an average debt load of $37,000. That kind of debt can hinder a person from starting off life as an adult. While finding a job is the goal, it's not always what happens. Even if your child does get a decent job, that's a lot of money to spend each month on top of rent, utilities and other expenses.
What's particularly horrible about the expense of college is that 45 percent of borrowers in a survey of 1,500 student loan borrowers say the experience of college wasn't worth the cost. Thirty-seven percent said they had to delay saving for retirement and another 28 percent stated that they had to delay buying a home.
To help your child avoid this kind of situation, it's important to go to a school that fits within your financial goals. Be honest about what you can afford, and find out your child's ambitions. Have a realistic discussion about debt, so it's no surprise when the bills come due. For those already submerged in student loan debt, there are repayment plans and other debt management techniques. Our website has more information on the kinds of debt relief options available today.