Help your grand kids avoid student debt. It's about more than money --- they need a plan.

By JULIA ANDERSON
 The numbers are shocking.
The average cost of attending a four-year public university in the U.S. -- tuition, fees, room and board -- in the 2018-19 school year was $21,370. At out-of-state universities the cost jumps to $37,430. (That's about $85,500-$149,000 over four years.) 
 
These estimates don’t include expenses such as school supplies, textbooks and transportation, says US News & World Report in a recent article.
 
The costs are intimidating for students, their parents and grandparents. Tuition costs alone at public institutions have soared 213 percent in the past 30 years.
 
Then comes the second problem – student debt. Borrowing to pay for education beyond high school has ensnared 44 million people who now owe a combined $1.52 trillion in student debt. Average debt owed per student is $38,400.
 
According to Forbes magazine, it is taking 18 years on average to pay off these loans. Kids will be in their 40s before becoming (student) debt free.  This is a huge problem not just for the borrowers, but for the U.S. economy because debt keeps young people from buying cars, buying houses, moving out or having children.
 
What can grandparents do to keep their children and grandchildren from falling into the student debt trap?

Plenty, says Jennifer Satalino, director of The College Place, who appeared on Smart Money, my public television show, recently. Her organization helps people pursue undergraduate education through counseling, financial aid and scholarships.
 
“It comes down to talking about all this early on,” Satalino said. “Families need to lay out a plan that includes saving for school, a budgeting strategy that makes sense and being smart about getting those college credits. It may mean living at home and working part-time,” she said. “Students don’t have to rush.”
 
She said, it also means understanding student debt – types of loans, avoiding bad loans and bad interest rates, understanding who services them, repayment options and costs over time.  
 
How to avoid student debt: 

Better yet, avoiding student debt in the first place. It can be done.  Here’s how parents and grandparents can help:

Set up a college savings plan, early. Some families start tax-deferred 529 savings plans before their kids are even born. Grandparents also can set up 529s.

• Start early talking to your kids about smart ways to get an education. Get them involved in the long-term strategy. Make sure that their career choices fit the plan. It’s no use shooting for degree in communications or law while taking on $70,000 of debt. (See below for least and most regretted college majors)

 

• Encourage them to take college advance placement classes while still in high school. These are cheap credits and speed up the process.

 

• Live at home and attend a local community college but have the big picture in mind. Make sure these credits are 100 percent transferable to the four-year university where the student wants to finish out his/her education.

 

• Put together a work-study plan. Working part-time serves two purposes: the student gets real work experience and at the same time bank the earnings in a college savings plan. For every dollar earned maybe a grandparent can match that money.

 

• While a student encourage your grandchild to look for internships that provide earnings and on the job experience in the field they’re interested in.

 

• Look into grants. You don’t have to pay these back.

 

• Get as many scholarships as possible.

 

• Avoid using credit cards. Credit card companies prey on college students. Credit cards are tempting but should only be used for emergencies. Explain that this is the most expensive kinds of debt because of high interest rates.

 

• Get textbooks, used.

 

• Write down expenses, make a budget. Know where you stand.

 

• Remind your student that the top-paying college measures earn $3.4 million more than the lowest-paying college majors over a lifetime. STEM (science, technology, engineering and math) disciplines earn the most overall.

 
If your student decides to take on a student debt loan, here are the basics:
 
Research starting salaries in the field they plan to pursue. Will their starting income support debt repayment?
Ask what can they afford to repay?
 
Understand the terms of the loan.
 
Make payments on time.
 
Keep in touch with your loan servicers who can provide options to keep your loan in good standing.
 
Most-regretted college majors: SOURCE: CNBC.com, ZipRecruiter survey
 
Major                                           Leading reason for regret
English & foreign languages                         Impractical, limited job opportunities
Biological and physical sciences                 Advanced degrees or licenses often required
Education                                                            Low pay and job satisfaction, limited opportunities
Social sciences & law                                      Too general, impractical, hard to find a job
Communications                                              Too general
 
Least regretted college majors
 
Major                                                    Challenges
Computer science & mathematics                            Can be stressful
Business                                                                             Too general
Engineering                                                                        Best jobs require advanced degrees
Health administration & assisting                             Lower job satisfaction
Health sciences & technology                                      Lower job satisfaction
 
 Bottom Line: Grandparents can help their grandchildren avoid student debt, layout a strategy for getting a college education and landing a good job.

How?  By advising them to take it slowly, by keeping expenses at a minimum and staying the course. This requires starting the conversation, early. Like now!!
 
 For MORE:
5 Ways to Avoid Student Loans, click here
5 Ways to Avoid Drowning in Student Loan Debt, click here.
The College Place – Oregon, click here. 
Oregon Promise, click here
The 5 college majors American students most regret picking, click here
Student Debt Relief, click here
Federal Student Aid, click here
How to Pay Off Students Loans, click here
4 Best Ways to Pay Off Student Loans, click here