College is a big investment—in both your personal development and your financial future. But a major investment often comes with a major price tag.
In the U.S., the average cost of attending a four-year college, including books, supplies and daily expenses, is more than $36,400 per year—or $146,000 in total.1 So it’s understandable that many have turned to student loans to finance their degrees. Today, there are 43 million federal student loan borrowers each owing an average of more than $37,000.2
Student loans don’t only impact borrowers right after college graduation—nearly half of all student loan debt is held by those between the ages of 30 and 50.3
The “Standard Repayment Plan” for federal student loans is set up for ten years, but it takes the average borrower twice as long to pay off their debt in full—meaning you may be thinking about helping the next generation pay for their college experience before you have finished paying off your own.4
Many parents want to assist their children financially so they can avoid student loans, with three in four parent borrowers saying they put their own financial goals on hold to take out student loans for their children. 5
If you’re in this situation, maintaining your financial well-being will require finding a balance between your obligations and your support for your children. Let’s go over some approaches for managing these two important goals at the same time.