As of January 2024, a staggering $1.75 trillion is the total student loan debt in America!
With an average of 20 years for repayment, students on average owe $28,950, where private loans reach as high as $54,921!
Where On Earth Do These Costs Come From?
Tuition and fees are primary components of your overall cost of education. Through stronger comprehension of your varying costs, you will be able to estimate the financial commitment required.
For students living on campus or in off-campus housing, room and board expenses contribute a great amount to the total cost. This includes accommodation, meals, and other associated living costs. On average, $12,000 is what you will be paying whether it’s on or off campus.
Course materials, textbooks, and supplies can add up quickly. Although these expenses are not typically “pricey,” they add up quicker than you may think! Keeping in mind that there will be increases in book prices over the next academic years.
Travel costs, personal expenses, grocery shopping, and miscellaneous items contribute to the overall financial picture. Accounting for these variables helps in creating a comprehensive budget for your child’s education as well.
Let’s Change This
First, I recommend starting with a detailed budget that covers all aspects of your child’s education. This includes tuition, living expenses, and miscellaneous costs. A well-structured budget is the foundation and absolute basis for effective financial management.
Then, help encourage your child to explore federal aid options and scholarship opportunities. Grants and scholarships can significantly reduce the need for loans, lightening the financial burden.
Federal student loans often offer more favorable terms compared to private loans. You should know what the different types of federal loans available are and what their respective interest rates are as well.
If you haven’t read my blog about how to financially prepare earlier for college, I would recommend doing that, so your child is ahead of the game!
Questions, Comments, Concerns?
Are you ready?
Now that you know, get started early and save your child the debt!
Thank you and if you have further questions or thoughts, let know down below!
