Postgraduates and credit unions may benefit from each other
Student debt is still astoundingly high and will continue to affect the youth of America. Young adults are saddled with debt and looking for the best financial options to start lives after school. Here is why both postgraduates and credit unions can benefit from joining forces.
All about debt
Student debt is still astoundingly high, and doesn’t appear to be letting up. The Institute for College Access and Success did a state-by-state study of average student debt. New Hampshire had the highest amount of debt at an average of $32,795. New Mexico was the lowest with an average student loan debt of $18,656. In addition, 7 in 10 seniors who graduated from public and nonprofit colleges in 2013 had an average of $28,400 per borrower, a 2 percent increase from the average 2012 student loan debt. Not taking into account interest rates, that would take about five years of $500 a month to pay off, and that’s only the average, not including those who attend private universities.
Where credit unions come in
The first couple years out of college are usually ones where young adults learn about the real world, including building their credit score and paying off debt. Because traditional banks generally charge excessive fees, it is unlikely that new grads would want to partner with them. Simple checking accounts or credit cards that will not charge them large amounts if they are late on a payment are the best option.