According to a recent Fidelity survey, between ballooning student loans, credit cards and money owed to family members, they are facing an average $35,200 in college-related debt.
“We’re tending to find people are still surprised at the level of debt they’re graduating with, which suggests we still have a long way to go in terms of having conversations about planning for college, saving for college and figuring out the best place to go [to college],” said Keith Bernhardt, vice president of college planning at Fidelity Investments.
Based on the most recent data, the bulk of the class of 2013’s debt is in government loans, with graduates owing an average of $26,000. They also had an average of $19,000 in private loans, $18,000 in state loans, $13,000 in personal and family loans and $3,000 in credit card debt.
For those that have federal loans, now is the time to consolidate them. The same can be said for private student loans, especially those that carry an unnecessarily high interest rate. Whether you are thinking about a private student loan consolidation
or a federal student loan consolidation, remember that by consolidating, you may be increasing the total amount owed if you choose to extend the repayment term.