Make sure you college student understands their student debt

Make sure you college student understands their student debt

RICHMOND, Va. (WWBT) - Nearly $30,000 dollars! That’s the average amount of debt carried by members of the class of 2018. And a new survey says, those headed to college don’t really understand how much student debt they’ll be taking on.

56% of college students don’t know the interest rates on their student loans. That’s according to a new survey by Clever Real Estate. It found-- most college students underestimate how long it takes to pay off student debt by more than five years.

Students are apparently 8 times more likely to take out additional loans during college and 71% are more likely to carry a credit card balance each month.

This is why it’s so important to make sure your college student understands what it means to have a loan. Make them Learn the loan. They should know when the first payment is due-- and what to do if they don’t have a job yet.

Show them how to log onto the national student loan data system-- so they know where to go to ask for information.

Be proactive. Talk about debt and loans with your future college student. Get them off to adulthood on good footing.

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