It’s stunning! According to a survey, millennial-aged college graduates are spending a whopping 18% of their salary on student loan payments, and 60% of them expect to be making payments on their student loans into their 40s.
But it get’s worse! The survey also found that average student debt for millennials is more than $41,000, and a third reported being clueless as to their loan’s interest rate. Sadly, many millennials aren’t willing to adjust their lifestyle to pay if off more quickly. For example, less than half were willing to cut what they spend on eating out and entertainment.
The last big discovery of the survey: one-third of the grads said they would have skipped college altogether had they known how expensive it would be in the end.
Here are five ways to rescue millennials from drowning in student loans:
- Start preparing early! Urge your high school-age kids to take duel credit classes that will count as college credit. Dan and Cheri Schilling’s 17-year-old son will graduate from high school having earned 90 college credit hours. When he enrolls in college, he’ll have completed the first three years of college FREE!
- Another option is to enroll in a local community college the first two years to complete your general classes or to work full time and take online college classes, which are typically much less expensive.
- Secure as many grants and scholarships as possible by investing the time to research every possible opportunity.
- Encourage your children to work full time during the summers, and part time at college after their first semester. Apply what is earned toward college costs.
- Parents, start saving early to assist your kids, but don’t cosign for your children’s student loans or take out any loans yourselves.