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Student debt can become a challenge for some graduates as well as parents.
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Coaching our youth to ensure they understand their options and that obtaining a degree, may not be a guarantee to obtain a job.
Student debt can cripple both students and even parents.
There was a recent article published in Bloomberg Business on 18 December 2015 entitled ‘Student Debt May Be the Next Crisis Facing Ederly Americans.’ This article describes what is occurring in the United States. It tell us about Robert Murphy who, at the age of 65, is broke and owes $246,500 for 12 Parent PLUS loans he took out to pay for his three children to attend college. This is an alarming story. The article states as a bottom line in the United States: ‘The amount of education debt held by people 65 and older ballooned to $18.2 billion in 2013, from $2.8 billion in 2005.’
The average Canadian student debt is estimated to be between $20,000 to $30,000. This debt after graduation causes enormous challenges on many graduates as the unemployment rate among youth is much higher than the average. In 2014, youth unemployed and under-employed stood at 27.7%.
When saddled with high debts and challenges to find viable employment it can delay the time it takes for individuals or couples to have children, get married, own property, etc.
There are many examples of stories of such debt-ridden graduates. In a CBCnews Canada article it describes Britanny Verge, who graduated in 2008 with about $25,000 of student loans and was not been able to find appropriate employment. As a result she has had major challenges in paying the loans. The article mentions that if she could go back to her senior year in high school, she would have been more certain of what she wanted to study before spending $8,000 on a year’s worth of university. This informative article can be found in the cbc news at:
Our youth should be made aware of their options. They should understand how to research and determine potential implications of taking out student loans and the potential hardship that it can cause.
This is a subject which could be covered as part of our coaching programs. The job market is rapidly changing and many of the traditional jobs will either disappear or be dramatically changed by the time they graduate. This will impact their adult lives.
This is another area in which our youth can use our assistance.
If you have any comments or questions, please post them as I look forward to hearing from you.
Wishing you lots of love and laughter, as always.
Fred Jones
Victoria, BC Canada
Fred Jones