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Student Loans: For Millennial Generation, College Isn’t Necessarily Worth It
Wednesday, May 29, 2013 6:25 AM

A college education goes far in the long run – or does it?

 

A recent Wells Fargo study, which surveyed 1,414 millennials between the ages of 22 and 32, revealed that roughly one-third of them say they wish they had entered the workforce directly after high school rather than going to college. This is because student loans – which more than half of those surveyed used to finance their college educations – have become an unbearable burden for many.

 

Student loan debt now stands at about $798 billion, officially surpassing U.S. credit card debt. And, according to the New York Federal Reserve, delinquencies are increasing as well. Borrowers who are at least 90 days late on student loan payments went up from 8.5 percent two years ago to 11.7 percent in 2013.

 

While some students are fortunate enough to go to a prestigious university, the juice hasn’t been worth the squeeze for others. Many colleges’ tuitions are pricey, but their guarantee to land their students with a high-paying job is not.

 

Even worse is the fact that, according to a report from the National Association of Consumer Bankruptcy Attorneys, rising student debt can have a negative impact on the economy. This is because young people with high debt often delay big life events such as purchasing a car or home, or getting married and having children.

 

Lack of financial education plays another role in the increasing student loan debt. The Wells Fargo survey shows that 79 percent of the millennial generation wish they had learned more about personal finance while in high school.

 

Many opportunities are available locally to help curb the growing problem of poor financial education. The Texas Credit Union Foundation (TCUF) provides financial literacy programs to both children and adults, including the NEFE High School Financial Planning Program, financial education grants and scholarships, the Texas Jump$tart Coalition and awards.

 

To learn more about TCUF’s financial literacy opportunities, please visit http://www.tcuf.coop/Financial_Education.html.