When my son was 16, I made a decision that many of my friends with teenagers thought was a little "out there": I let him have his own credit card.
Move over, credit cards—Americans now owe about $1.5 trillion in outstanding debt for U.S. consumers according to the Pew Research Center, surpassing what’s owed on credit cards and auto loans. Is all this debt worth it, and how can you keep college debt in check?
With September coming up quickly, many big banks are offering flashy benefits for new college students. Banks create special offers, such as waiving monthly fees for a number of years or offering credit cards with cash back on certain purchases, to attract these new account holders.
But it’s important to realize that the fees don’t go away forever, many accounts have minimum balance requirements, and credit cards can come with exorbitant interest rates.
There's a solution, however. Just bring your credit union to college with you this fall!
As a not-for-profit financial cooperative, Hanscom Federal Credit Union is accountable to its members — that's you! — and not a profit-driven group of shareholders. This means it's in our best interest for our members to have financial tools at hand and the wisdom to make sound decisions about their money. When our members do well, we do well, and it's why we offer free financial education for anyone who's looking for a secure financial future.
Do you have plans to pursue a higher education degree? Let’s face it, an education at a college, career program, or graduate school is expensive. Most students need some kind of assistance, and navigating the student loan options available can be difficult. Here is a quick overview of the best current options for new college students and their families.
Student loan debt is the enemy of many millennials, but it’s becoming a problem for some older Americans, too. According to the Consumer Financial Protection Bureau, recent data shows that between 2012 and 2017 in more than three-quarters of states, the total outstanding student debt held by borrowers over age 60 increased by more than 50 percent. For many of these borrowers, this student loan debt is money borrowed for their children’s or grandchildren’s educations.
The job market looks good for new college graduates. Last year's college graduates entered the strongest job market in over a decade and good news for 2019 graduates -- employers plan to hire 16.6 percent more new graduates than they did last year. And if you chose a hot field of study, you may have several offers to choose from after graduation. That’s great, because before you know it, you'll be repaying the loans that helped you get your degree.
Most parents have already heard the bad news: a college education has never been more expensive. Many, in fact, are still paying off their own student debt and would like their children to avoid that burden. The good news is that there’s a lot parents can do to help their children and make the costs of college more manageable.
A college education can be your ticket to greater job opportunities and higher earnings over your lifetime. However, tuition, fees, and living expenses add up to a substantial investment.
It is not unusual for college tuition to cost $30,000 or more a year. Some students are able to pay for it with savings or get grants or scholarships. However, many have to turn to student loans to finance at least some or all of their costs. Taking out student loans can pay off in the long run because having a college degree usually makes it easier to get well-paying jobs. However, if you