Career College Central

Career College Central - May 2016

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Subscribe at 29 The price of college tuition in the U.S. has been increasing faster than the rate of inflation for decades, and the borrowing habits of millennial students prove it. e latest numbers, from a Bentley University study, suggest that seven out of 10 of last year's college seniors graduated in debt. Student debt "now comprises 69 percent of the debt side of their balance sheets" for average 25- to 30-year-old Americans, according to the Federal Reserve Bank of New York. While this snowballing student debt trend seems to be slowing, the cost of higher education is still a burden that millennials are unable to handle independently. As Sandy Baum and Jennifer Ma of the College Board reported in 2015, "College price increases are not accelerating. But they are accumulating." Accumulating along with them is student debt owed to the federal government and private entities. e Bentley University study places the total student loan burden in America today over $1.2 trillion, a number that has tripled in the last decade. Are millennials' poor choices to blame? Probably not is isn't your baby boomers' education — millennials can't work full time during the summer and part time during the school year to pay for college and living expenses like their parents may have been able to. "College costs a lot more today than when the parents of current students went to college," said Mark Kantrowitz, senior vice president and publisher of "Back then, it was possible to work one's way through college. Fewer students borrowed to pay for school, and average debt among those who borrowed was much lower. Today's students are growing more sensitive to the debt burden." Plus, those loans currently come with an interest rate of up to 12 percent. Forty-five percent of Americans with student loans, and 56 percent of those between 18 and 29, have put off a major life event because of the burden of that debt, according to a study by Bankrate. "Part of the problem could be that more than half of student borrowers who were surveyed, and two-thirds of millennials in that group, say they didn't receive enough information or advice about the financial risks," the study said. "Most families are not advised through this process. e decision to take on this debt is largely made based on the fact that this is the only way to pay," said Allan Katz, president of Comprehensive Wealth Management Group in Staten Island, New York. "e key is to plan properly early so that you can reduce the amount of debt you are taking (in) the first place." WHAT WOULD THEY DO? How far would millennials go to get rid of their student debt?* • 55 percent would be willing to turn their lives into a reality show • 30 percent would sell an organ • 43 percent would sell half their possessions • 38 percent would volunteer for a questionable medical study • 32 percent would sign up for active duty * According to a 2015 poll of 200 random MyBankTracker readers WIN AN APPLE WATCH TAKE A SHORT SURVEY AND YOU COULD WIN A NEW APPLE WATCH TAKE A SHORT SURVEY AND YOU COULD WIN A NEW APPLE WATCH Scan the QR Code or visit:

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