Student debt is an issue that many people face after graduation. It may take a year to pay it all off or years and years… It still needs to get done. Did you know that among the 2018 class, 69% of college students took out student loans, and they graduated with an average debt of $29,800, including both private and federal debt? Meanwhile, 14% of their parents took out an average of $35,600 in federal Parent PLUS loans. According to Lending Tree, student debt is rising every year due to economy standpoints and an overflow of people who want to go to school.
Americans all over the U.S. owe more than “$1.56 trillion in student loan debt.” Let’s let that sink in for a second, because that would come out to 44.7 million people owing money. (WOW!) The average amount of money people can afford to pay per month is $393. During a survey, many individuals were asked if they were able to cover the cost of a surprise bill of $400. Around 41% said no, and stated that they weren’t even able to perform any home repairs or pay for medical emergencies.
Depending on the school you may or already have attended, the price fluctuates per educational program. This also comes into play when applying for jobs. Many companies are more likely to hire when you have a high-level degree and qualified work experience, which will affect income as well. The collegiate website Nitro explains the balance beam going on as, “The earnings premium for degree holders has grown steadily over the past several decades, and college graduates are more likely to become homeowners, according to the Federal Reserve Bank of New York. Among all Americans aged 25 and older, 58.9% have spent at least some time in college, and about 32.5% have earned a bachelor’s degree or higher. Younger Americans are more likely to prioritize going to college than in previous generations. Among people aged 65 and older – part of the baby boomer and silent generations – 50% have spent some time in college, and 27% have a bachelor’s degree or higher. Among those aged 25 to 34 – who would be considered Millennials – 65% have spent some time in college, and 36% have a bachelor’s degree or higher.”
If your credit union’s field of membership can target college students, keep in mind that a college graduate having already paid off the bills, is a very believable statistic in today’s world. With the market skyrocketing, the affordability to live in certain areas can be unbearable while paying off many other bills, like a mortgage loan. There will always be many people to this day working more than one job, trying to earn rent for the month and plan ahead for a new home. Build a lending relationship starting with students in your community. Your credit union could build relationships with your credit union community by offering skill-driven loans. There should be loan options for those who need to work a couple of jobs and go to school at the same time. Take a look at Commodore Perry Federal Credit Union, who decided to offer “technical skills education loans.” “We came up with a program that mirrors the unique benefits of traditional student loans,” says Mike Barr, President and CEO, Commodore Perry FCU. Read more about types of loans offered from the interview with creditunions.com here.
Let’s dig a little deeper, now. There have been known conversations within companies about hiring people without a college degree. You might ask, “Why?” The reason is that many C-level executives like the fact that many people without a degree know how to work hard and are not afraid of asking questions. Credit unions for example, have been known to always lend a helping hand to those who seem to need it most. Knowing that there are many hard working people out there with determination, the goal is to create an equal balance of life for those who do struggle with student debt, and credit unions hiring qualified employees.
The greatest thing about credit unions is that they are always there for their members. Providing loans and special coverage, it makes it easier for the members to manage their expenses while also building their credit score. The goal is to simplify it all and to provide the quick & easy online applications for anyone to use. Your credit union is not simply giving the money away. You may be investing in your members through education, and the loans are meant to help give them a stronger footing within their financial acts. A happy credit union community contributes to a happier and healthier way of life.
Helping credit unions help their members is our passion. We at Oak Tree know how student debt can be very stressful for a lot of people, so we are here to help our #CUfamily help their members. We wouldn’t be standing tall for 35 plus years if we didn’t believe in our products and services. With our success rates skyrocketing, our immaculate compliant forms and impeccable customer service is what is keeping us on top. Our mission is to help you, help your clients get to a comfortable stance in their financial field. We’ve got you covered. Just sit back, relax, and enjoy your members’ smiling from ear to ear!
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