SPRINGFIELD, Mass. (WWLP/AP) – A college students loans can have an affect on their entire family.
Before parents are done paying off their loans they are already taking on their children’s, and it’s sinking the entire family deeper into debt.
America‘s surge of student debt is now at $1.2 trillion. Weighed down by their own loans, many parents lack the means to fund their children’s educations without sinking even deeper into debt.
Amanda Percival, a Freshman at Western New England University said, “Move back in with my parents for sure and try to start like a system of saving money and putting money away, paying it back and then money for moving forward.”
According to the New York Federal Reserve Americans over 40 years old account for 35% of education debt that’s up from 25% in 2004. Adults from 35 to 50 years old owe about as much as people fresh out of college do, with an average of $20,000.
“I think I’m going to try and set up a payment plan definitely ask my parents to try and help me. We’ll see, but if it’s all up to me I’m going to try and do what I can get a job and pay that off as much as I can. I think it’s going to take a while, but I think I can do it,” Shae Koharski, a Freshman at WNEU said.
Western New England University offers counseling for repayment and consolidation of loans for students entering and leaving college. WNEU Director of Financial Aid, Kathleen Chambers told 22News, “The one thing that we constantly drive into them is that you need to keep in contact with your lenders. Don’t just not make payments or not make decisions.”
By consolidating loans it can lower monthly payments, but it could mean paying off your loans into your 40’s.
The Obama Administration is trying to enable students to apply earlier for financial aid in 2017, so they can better plan and anticipate what their debt would be when choosing a school.