Most Teens Can’t Afford Higher Education Anymore Under Biden
(LibertySociety.com) – Going to college used to be the next logical step after high school, with guidance counselors and parents helping kids navigate their next steps. However, the cost of college has gotten so out of control that teens are looking at the prospect of adding mountains of debt with little guarantee of return and wondering if the move is worth their time after all. A recent survey showed 54% of teens worry about their financial futures, making them rethink attending college.
Details From the Research
The JA Teens & Personal Finance Survey asked 1,000 teens aged 13 to 18 toward the end of February about their futures in higher education. Nearly 70% of those polled cited the rising cost of education as the number one thing affecting their after-high school plans. About a third of the teens said finances weren’t a factor when deciding next steps, and nearly that many were considering staying in-state for school, ending up being the cheaper option. About 22% of those surveyed planned to live at home while going to school locally to save costs.
Sadly, nearly 40% didn’t know how student loans work or how their education ties to the job they can expect, while a slightly higher percentage revealed they had no financial literacy education in school.
With all the talk of forgiving student loans and the amount of debt students carry, it’s no wonder this generation is a little spooked by the prospect.
How to Finance Higher Education
The first thing to do when looking to finance education is to compare schools. The US Department of Education has a College Affordability and Transparency Center tool to help with research. The government also provides a Federal Student Aid site that compiles a list of grants, work-study loans, student loan options, and scholarships to browse. There’s even a checklist to help prepare in advance. Finally, the Consumer Financial Protection Bureau provides information for a deeper understanding of financial aid, student loans, and other financial guides for college.
While there are many options available, the sheer amount of work can overwhelm even the most prepared. Considering the teens surveyed felt they aren’t fluent in financial literacy tells parents exactly where to start. If parents are also less than certain about finances, reach out to educators who have a better understanding and can bring families up to speed. Starting there will ensure teens don’t jump into debt without considering the future impact on their financial lives and career choices.
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