College Debt Solutions And Generation Y

[May 4, 2010.]

 

Who Is Generation Y And How Much Debt Do They Have?

Generation Y are the under 30 somethings. Many are just graduating from college and making the transition to the real world. Generation Y is experiencing a perfect storm. They are looking for employment during the worst economic period in several generations, having just lived through a period of irresponsible lending and spending.

Depending on the type of degree program they completed, Generation Y can have up to $100,000 in student loan debt. Additionally, many also have high interest credit card debt. With a bleak employment outlook, many are seriously concerned about their ability to get out of debt.

College Students Need Debt Solutions

According to Anya Kamenetz, author of "DIY U" and "Generation Debt," since 1978, the cost of college has gone up more than any other goods or services. In several other industries, technology has brought transformation and dramatically reduced costs. For example, today's businesses rely on video conferencing to save millions every year on airfare and hotel accommodations once necessary for a face-to-face meeting. Kamenetz believes college campuses are overdue for such a transformation.

The necessary technology is available. The traditional college campus isn't necessary. Today's students could attend the same lectures and do much of the same research from their own homes. Colleges could save millions on facilities maintenance, dramatically lowering the cost of a college education and providing debt relief to future graduates.

Helping Generation Y Get Out Of Debt

Debt solutions for future college graduates will not help Generation Y with their $100,000 of college loans and high interest credit card debt. Students and their parents who made decisions to take on a high amount of debt did so with the belief that the debt was worth the risk in the long run. They believed the jobs would be there to make it all worthwhile. Times have changed and now they are going to struggle to find sufficient employment and make payments for more than a decade.

Traditional debt consolidation programs will need to be expanded for Generation Y. Society has a responsibility to help them transition from the economy of abundance they grew up in to the new, more conservative economy of today.

 

About Author:

Renee Morgan has been a loan officer for over eighteen years. She is also a freelance writer and guest expert for radio and TV.