Parental alert: Your debt-laden child is eyeing your basement

Parental alert: Your debt-laden child is eyeing your basement
Large chunk of students borrowing money for college plan to move back in with mom and dad, survey reveals
MAY 17, 2012
More than a third of Americans owe at least $1,000 from their college years and about 17% have at least $10,000 to repay from student loans or other borrowing they took on while pursuing a college education. And a great many are planning on moving back in with their parents once they graduate. While 35% of respondents to a new survey said they had at least $1,000 in college debt, 7% said they have $30,000 or more. About 10% of the 774 people interviewed from Generation Y, those under age 31, owe more than $30,000 from their college years. “Over the course of the economic trouble we've been through the last several years, people's ability to save for education may have gone away,” said David Shapiro, senior vice president of Western Union Payments, which sponsored the study. “More people are taking out loans because they see how valuable education is and so are leaving school with a great deal of student loans.” The education debt affects students' college years and those immediately following graduation. About 21% said their grades have suffered because of the amount of debt they owned, and 12% of students said they “may not graduate” because of the amount of their debt, suggesting they may have run out of money and are ineligible for any more loans, Mr. Shapiro said. About a quarter of students who will have student loan debt on graduation said they are mostly likely going to move in with their parents and another 3% plan to move in with relatives, according to the survey. “It all points to a lot more financing of education and a difficult financial situation when you get out into the workforce,” Mr. Shapiro said.

Latest News

Edward Jones facing more race bias claims in new lawsuit
Edward Jones facing more race bias claims in new lawsuit

A private partnership, Edward Jones is a giant in the retail brokerage industry with more than 20,000 financial advisors.

Advisor moves: LPL recruitment momentum continues with $815M Northwestern Mutual team
Advisor moves: LPL recruitment momentum continues with $815M Northwestern Mutual team

Meanwhile, Raymond James and Tritonpoint Partners separately welcomed father-son teams, including a breakaway from UBS in Missouri.

SEC chief Atkins signals caution on prediction market ETFs amid broader rethink of novel fund structures
SEC chief Atkins signals caution on prediction market ETFs amid broader rethink of novel fund structures

Paul Atkins has asked staff to solicit public comment on novel ETFs, pausing the clock on as many as 24 filings linked to the booming event contracts market.

Private capital's $1 trillion bet on the American retirement account
Private capital's $1 trillion bet on the American retirement account

From 401(k)s to retail funds, Deloitte sees private equity and credit crossing into mainstream investing on two fronts at once.

Advisor moves: Wells Fargo Advisors pulls in $9.6b in fresh talent during first half of May
Advisor moves: Wells Fargo Advisors pulls in $9.6b in fresh talent during first half of May

Big-name defections from Morgan Stanley, UBS, and Merrill Lynch headline a busy two weeks of recruiting for the wirehouse.

SPONSORED Are hedge funds the missing ingredient?

Wellington explores how multi strategy hedge funds may enhance diversification

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management