Student debt squeezing parents and children simultaneously
America’s crushing surge of student debt, now at $1.2 trillion, has bred a disturbing new phenomenon: School loans that span multiple generations within families, according to ABC News. Because of their own loans, many parents are unable to fund their children’s educations without sinking even deeper into debt.
Surveys and data analyzed exclusively by The Associated Press found that:
— School loans increasingly belong to Americans over 40. This group accounts for 35 percent of education debt, up from 25 percent in 2004, according to the New York Federal Reserve. Contributing to this surge: Longer repayment schedules, more midcareer workers returning to school and additional borrowing for children’s education.
— Generation X adults — those from 35 to 50 years old — owe about as much as people fresh out of college do. Student loan balances average $20,000 for Generation X. Millennials, who are 34 and younger, have roughly the same average debt, according to a report by Pew Charitable Trusts.
As new dentists, can you relate?