Years ago going to college meant an increase in earnings potential; which translated to your ability to own a home. A place to call your own, a lawn to mow, a place to invite guests, spend holidays and relax is the dream of most. While getting an education is still important, one must also consider the potential impact of student loan debt.
It is estimated that student debt is the second-largest debt to one’s home. With us in the midst of summer, it’s time to think about how we can assist our children to get the education that they need without graduating with a debt larger than a mortgage. Often times households of color will motivate their children to go to college without thinking through the process. Families may find their children have graduated with a Bachelor’s, Master’s or Ph.D. level degree without ever having a conversation about the job prospects of the area they studied. Having a conversation with your student about securing a job that will offset the cost of their education is extremely important.
Once your child has decided on their area of study, it’s important that you help them make a decision about where to go. Traditional 4-year schools are always what comes to mind when you think of a college education. Keep in mind, a great way to cut debt in half is by studying for your first year or two at a smaller community college. Just make sure those credits transfer by speaking to the admissions offices at both colleges. While your student may want to get out of the house as soon as possible, another cost-saving strategy is to commute. If possible, living at home can save you and your student nearly $10,000 a year in room and board costs!
If you, or your student, have any questions, please reach out to us at [email protected] or call 510-237-6459. Richmond Neighborhood Housing Services is committed to changing the narrative of homeownership, as well as Changing the Narrative of wealth; by providing tools that offer other life-changing financial milestones. Homeownership has been determined to be the one transaction that could close the wealth gap – however, education is one that can support the Homeownership goal. It’s time to get educated in all aspects of our lives.