Students who graduated college in the throes of the recession are still struggling to make it on their own.
Two years out of college, half of graduates are relying on their parents or other family members for some sort of financial help, according to research from the University of Arizona. The study tracked more than 1,000 of its students over the course of five years — from when they entered college in 2007 to 2013.
“These people started college during the boom period, then the market fell apart and they came out of college into a very different environment,” said Ted Beck, president of the National Endowment for Financial Education, which helped sponsor the research.
Related: Grads with more debt are less happy
Whether they rely on their parents for every single expense or just need a little help here and there, many graduates say their financial situations have caused them to postpone certain life goals — like getting married, having children or buying a home.
About 28% of respondents said marriage is not an important goal for them, while 27% said the same about having children. Another 19% said owning a home isn’t important to them, and 16% cited living on their own as unimportant.
“There’s been a deferral of those things we would traditionally think people would start to do at this age,” said Beck. “People are not willing to make those commitments until they’re on more solid ground.”
Categories: Americas, Education, Educational Resources
Steve Forbes’ solution for student loan debt
It’s not often that Democrats like President Barack Obama and conservatives like Steve Forbes agree on the key issues of the day but that’s exactly what’s happening with the high cost of college and explosion of student debt. They both agree that rising college costs — now averaging almost $31,100 a year at private colleges and $9,000 for state residents at public colleges — and the $1.2 trillion in student loan debt have become big burdens for students, their families and the economy overall.
Where they disagree is on the solution to the rising cost of college and the associated rise in debt.
This week, recalling his own history of student loans, President Obama issued an executive order that expands the availability of lower monthly debt repayments. He also challenged Congress to pass legislation that would allow graduates to refinance old college debt at lower rates.
Forbes, who ran twice for the Republican nomination for president, is not a fan of more government intervention. He even blames government financial aid in part for rising college costs, but he laments the plight of graduates deep in debt.
http://finance.yahoo.com/blogs/daily-ticker/even-steve-forbes-is-upset-with-the-high-cost-of-college-and-he-has-suggestions-on-how-to-reduce-them-210548322.html