Politicians responding to our country's astonishing $1.2 trillion student loan debt have offered solutions ranging from free college tuition to debt forgiveness.
But parents of college-bound kids hold the key to an equally effective strategy. This one begins at the kitchen table with a straightforward conversation about money and how it's best spent on a college education.
Obvious, yes? But teens commonly e-mail dozens of applications to dream schools without once hearing from Mom or Dad about the financial pitfalls that likely face them down the road.
The average debt load has soared to nearly $35,000, compared with about $10,000 in the mid-1990s, according to Ed Grocholski, a senior vice president at Junior Achievement (JA) USA. His program offers financial and work readiness training in K-12 schools nationwide, including to 160,000 students in the Twin Cities and region.
Nearly 70 percent of graduating college students today have outstanding student loans, compared with about half the graduating class of 20 years ago, he said. Some young adults will be hunted and haunted by those loans for 30 years.
"A lot of folks think of this as an adult conversation," Grocholski said. "They're not sure how to approach it with their kids in a way kids will understand. And nobody wants to ratchet back their child's dream."
But parents, we need to start talking.
The good news is that our kids are ready and willing, if not wholly able. A recent JA survey found that 65 percent of teens accept responsibility for paying off their own college loans. But it's unfair to expect them to fully grasp just how life-altering their young and idealistic choices might be.
