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Thursday, November 3, 2011

Student Debt Rising Fast

Two thirds of the 2010 college graduates had federal student loan debt.  The average debt was 5% more than the class of 2009, with an average over $25,000.   Those students will start to pay about $270 per month next month, after their six month grace period ends.  They will carry that debt burden for the next decade.

Is there a way to avoid debt?  How can you be part of the one third of graduates without any debt?  Proper college funding planning, starting as early as possible, can alleviate the need to take on loans.  Our clients have not needed to take loans.  Some have seen their net worth increase during their family's college years.  Creating a strategic plan and implementing it empowers multigenerational success.

One simple strategy used by past generations with great effect is often completely ignored by the current high school and college students.  They worked.  Some held two jobs while they were in school.  Some only one but two during the summers.  Students in some fields chose schools with internships and coop programs, building professional work in their chosen field right into their college experience.  Flipping burgers is not glamorous but it can be quite motivating when a student needs to finish a paper or requirement to graduate - since they don't want to flip burgers forever.  Additionally, college students have far more skills, and are able, even in this economy, to work in capacities with greater responsibility and higher pay.  Some high school and college students have successfully started their own businesses.  Structured properly, a small business can create a significant income with a small, regular investment of time.

To explore having a custom college funding plan created for your family, See the Proven Results page of my website.

1 comment:

  1. I agree his opinion to college graduates had federal student are taking loan debt.It's discussing good factor of college student debt matter.