American colleges and universities are graduating some of the most technically astute people in our history. The Z generation grew up with technology and have a better understanding of social media than even their older siblings. Unfortunately, it does not mean that they are masters of all subjects. Personal finances can be a nightmare for them. Financial wellness education is essential to surviving in the real world. Learning how to deal with problems is important and the biggest problem these young people face is the college debt they accrued while earning that college degree.
Payment Can Be a Horror Story
Nobody can blame a college student for trying to ignore the mounting costs. A student must get through school and loans are sometimes the only way to pay for the education. What happens too often is that an individual graduates from college and then six months later is hit with a major shock. The final debt figure can be enormous. Many graduates have loan obligations in the tens of thousands of dollars. An unlucky few will have over $100,000 in debt and are looking at payment obligations that will stretch out for decades.
Shock can lead to panic that, in turn, will generate poor decisions with bad consequences. The new college graduate may use forbearance but that only delays the final responsibility and can cause payment problems to develop. Others will try to ignore the debt completely, but that is not a wise decision. A final, and very drastic move has a young person declaring bankruptcy. That can damage credit rating at a time when the individual needs to have good credit status. Countrywide Pre-Paid Legal Services sympathizes with the plight of a recent graduate. We want to help, and a benefit option of our financial wellness plan is assistance in dealing with college debt. Continue reading