Over the last 15 years the starting salary for recent college grads has declined about $4000. Unfortunately, as ValueWalk.com details, the amount of student loan debt most students are graduating with has skyrocketed. You can now expect to graduate into a worse job market and with more debt than just a decade ago, which is leading to a serious financial crisis- the average debt load upon graduation is $37,000, and many people can’t even make their minimum payments.
Nearly 60% of student borrowers have no idea when their student loans will be paid off. Over half of borrowers have no idea what their monthly payments will be when they graduate. When you combine these facts with declining wages and rising housing rates, many people will find they just can’t make ends meet.
There are a few things students can do before graduation to ensure they aren’t set up for failure. Find out what your total costs will be and only take out the amount you need- financing a pizza every Friday night for four years can easily turn an expense of $1800 into $2291 when you have to pay interest over time. Try to seek out alternative ways to cover at least a portion of your expenses- a work-study program or part-time job can be a big help!
Student loans can never be bankrupted, so it’s important to pay them off as quickly as possible. Make payments while you are still in school on order to minimize your debt load upon graduation, and once you graduate try to make additional principal payments whenever possible to help accelerate your payoff schedule. Stay on top of payments and set up automatic payments if necessary so you never miss a payment- penalties can keep you on the hook much longer than you need to be. Learn more about lightening the student loan burden from this infographic!
No mention of apple products? C-class mercedes lease payments? They didn’t dig too deep.
Maybe they should be spending more time studying useful subject that offer a viable future than being SJW’s and Protestors.
And maybe the government shouldn’t guarantee student loans in fields that have no employment opportunities available that will allow them to be repaid.
This article is a joke: make additional principal payments… ha ha ha.
It’s a fine article, the writer is wasting his time on these idiots. I would venture to guess that 75% of the degrees are economically worthless. Urban studies, women’s studies, all crap.
Trump won’t let them wiggle out of this debt.
If the government ever gets out of the student loan biz, colleges will have to get serious about providing value to the students. Any degree ending with the word “studies” will be eliminated.
This whole program is a jobs program for college professors, administrators and staff. The pension funds of universities should be clawed back to pay down student debt. The program must be stopped.
None of this will happen,of course. It will most likely be eliminated in the great Weimar=Venezuela printing press meltdown. Woe to this nation when the fools we have raised take charge.
Student loans should have no reason to exist, but given that they do, they should be paid directly to the school for purposes of tuition and fees, perhaps school-owned housing and school-provided meal plans in the case of schools with a campus. There should be a mandatory work requirement attached to them as well.
No one should graduate from high school without having had a demonstrably solid financial education. The “financial ignorance” graphic is frightening, nearly as bad as the “where’s the money going?” graphic.
The whole business is a racket, of course, but one that many families believe they can’t avoid, more’s the pity.
My aunt and uncle (who are Grade A morans and lay-abouts) co-signed a student loan for their son to go to – are you ready for this – cooking school in the amount of $180k. I know, I didn’t realize cooking school was that expensive either. Anyway, he burned through it in a year and a half partying hard and playing Mr. Big with his buddies. Yeah, he spent an average of $10k per month. He didn’t finish cooking school. Now he’s making some paltry amount chopping lettuce in some kitchen, and can’t make his payments. My aunt and uncle are stuck with the bill, and only recently discovered that this debt cannot be discharged via bankruptcy. So much for a comfortable retirement, yo.
I’m calling bullshit on the stat showing average starting salary of a US college grad is north of $50k. It wouldn’t even be that high amongst those whose first post-college jobs requires a degree, and when you factor in the millions of degree holders who are working as cashiers, waitresses, etc., I’d be shocked if the average was even $35k.
Good catch, Alfred.
Read a local magazine article about this real estate mogul lady who for the last 20 years has capitalized on providing off-campus housing for college kids. They showed some pics of the lavish digs these kids are staying in – more like a resort hotel. Each room has it’s own kitchenette and bathroom. Common area pool table, ping pong table, lounge, heated swimming pool, theater room, and even a fucking tanning bed. I’d laugh, but this $1T+ in student loan debt can only end one way – crammed down taxpayers’ throats. Enjoy it while you can, kids.
Mad Dog ,you are on a roll with the sad stories.You want a hug ?This is why I love little bb .He hugs me all the time.All I got to do is provide him with tuna or smoked salmon daliy .Good place to take a shit and piss ( you know men ) .Then a bubble bath once a week .He is as happy as can be.I think this is what you need.
Sad? I though it was funny. You would too, if you’d ever met my aunt and uncle; classic members of the Free Shit Army.
Here’s hoping you don’t come down with MRSA or C. Diff. while in the hospital again BB.
Prayers , bb.