Recent undergraduates are graduating college with far more debt, in fact just about record setting financial debt, as reported by new research of more than 400 students throughout the United States surveyed by Credit Sesame.
In general, regardless of the skyrocketing cost of higher education, Millennials (everyone born between 1981 and 2004) have a more positive outlook on college compared with Gen-X (everyone born between 1964 and 1980). Most young people recognize the significant value of a four-year degree within the workforce right now and, for that reason, are usually paying much more attention to what they study.
Here is what we uncovered from the survey results:
Earnings: Credit Sesame found that more than 10% of Millennial parents earned $150k a year, while just 3% of Gen-X families met that same number. Next up, more than 25% of Millennial families earned $110k per year while just 4% of Gen-X satisfied that segment. On the other range we've got only 16% of Millennial families within the $32k group, whereas only one-third of Gen-X families made that income.
Pay Up: About 25% of Millennials enrolled in a university where the tuition was $25k or more, compared to just 6% of Gen-X. By comparison, 50% of Gen-X spent less than $10k per year for school, while just 27% of Millennials paid under $10k.
What is the Job Outlook?: With college tuition prices up, Millennials are taking a far more practical approach to deciding on a college major. As compared with Gen-X, over 1/3 Millennials stated income had been an important factor in selecting a major (33% vs. 14%).
What Do You Really Believe: Paying the fast growing price of college is hard, but more than 75% of Millennials had said they feel it's more than worth it, yet only 68% of Gen X had a similar outlook.
The source Edvisors released data that the graduating class of 2015 racked up by far the most debt in US history, but Millennials still agree that a degree provides the ability to live the kind lifestyle they desire. Recent data from the U.S. Labor Department shows that people in the U.S. that earned a 4 year degree from a University on average earn 98% more per hour compared to those who didn't complete college. But this will not replace the undeniable fact that increasing price of education has put a college degree out of reach for many and trying to repay school loans has gotten more difficult each year.
Fortunately student loans don't have to rule your financial life. Here are several things you can do to manage your student debt:
- Enroll in Auto-Pay – You can recieve a .25 percent interest rate reduction on Federal Direct Lending Program Loans by having your monthly payments automatically deducted from your bank account.
- Get Advice from Experts – Consulting with experts like Credit Sesame can help you get a better understanding of all the options available to you. The financial aid office on your college campus is another place to obtain information regarding financing your college education. One option available to better manage multiple loans is debt consolidation. You may want to consider consolidating loans only if the interest rates on the individual loans are the same. Consolidating lower interest rate loans with higher rate loans will result in an overall higher rate and increase debt costs over the long term. There are also different repayment plans based upon your income level and amount of debt and you can change repayment plans at any time by contacting your loan provider.
- Deferment/Forgiveness Programs – If you work in the military, public service sector, or government, you may be eligible for loan foregiveness on the remaining balance of your direct loans if you have made ten years of on-time payments. If you have lost your job or are experiencing economic hardship, you may qualify for deferment for up to 3 years on your federal student loans. You may also qualify for temporary deferment if any of the following conditions apply: working mother, temporary disability, parental leave, or teaching in a shortage area.
We will need to understand that the value of the 4-year degree contributed way less worth to Gen X, as illuminated by the price tag being considerably less costly back in the day. Now Millennials are choosing degrees that both can yield higher income and are always in demand from businesses not just in present time but also long term. Despite the fact that for the majority of students, loans have become common and leaving post-secondary school with a large amount of debt is even more common, it doesn't mean that it has to stay that way. There are a number of strategies that can easily show you a personalized plan to begin paying off that debt within a significantly shorter timeframe.