Students are graduating from college with record debt levels. The average amount borrowed for a four year degree now ranges between $24,000 and $28,000. The impact of the debt is that it is carried forward into their 30's which can affect when they will be able to afford a home, save for retirement or start a family.
Much is being written about parent fears that their new college graduate will move back home to live in the basement after graduation. Rather than fear it, parents can be proactive and welcome it. Parents have more financial experience and can help their young adult child work out a repayment plan that will get student loans off their back within 2-3 years.
Depending upon income, the new grad could even pay modest rent to mom and dad. That would mean by the age of 24 most young adults could move forward with no debt and be able to pay the costs of living on their own and saving for a home and retirement. The rent that they paid to Chateau Mom and Dad could be entered into an education savings plan for their future children which would mean the next generation may not need to spend time in the basement after graduation.
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