July 31, 2015
There’s no disputing the financial returns of a college education.
Over the course of their careers, graduates with a four-year degree earn over $1 million more than those with only a high school diploma — a gap that has widened over the past 25 years, according to a 2014 “Current Issues in Economics and Finance” report by the Federal Reserve Bank of New York. Yet with those benefits come escalating tuition costs, which more students and their families are meeting by taking out loans. Total student loan debt in the United States has surpassed debt from credit cards, auto loans or home-equity lines of credit.
New Strategies for Families
A manageable amount of debt can help college graduates learn the importance of budgeting. “If you are a family of means that can pay for a college education, that’s the greatest gift you can give a child,” says Bob Webster, National Director of Wealth Planning for The Private Client Reserve.