By now, I am sure you have seen the headlines:
"The U.S. Student-Loan Debt Crisis Is Even Worse Than We Thought" - Forbes, May 24th, 2018
"Despite the economic recovery, student debtors' 'monster in the closet' has only worsened" - CNBC, September 27, 2018
These bleak headlines point out what many of us already know- the cost of attending a four-year college or university is high and is only getting higher. According to College Board, during the 2017-2018 school year, the average cost for full-time students who live on campus at a four-year college or university is $25,290. A four-year private college or university? $50,900 per year.
A student who graduated from a four-year college in 2016 has on average $37,172 of student loan debt, according to a Forbes Magazine article from June 13, 2018. For borrowers age 20 to 30, the average student loan payment has crept up significantly since 2005 as well, ballooning from $227 to $393 as of 2016.
When it comes to determining who should pay the bill for education, the answer to that question is different for every family. Typically, costs are either shared amongst the parents and child, fully paid for by the parent, or fully paid for by the child. In any of these scenarios, there is usually a blend of methods combined to come up with the resources to pay the costs, through a combination of scholarships, grants, loans, savings, and personal income.
If you would like to have a conversation on different avenues for helping to save and pay for your kids college education, please give us a call, as we are always here to help you in "Moving Life Forward".