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THURSDAY, MAY 21,2020
THE GEORGIA POST &THE BYRON BUZZ
Student debt delays home
ownership and more
Young adults seek college degrees in order to secure
well-paying jobs that help establish future financial stabil
ity, including fulfilling the dream of home ownership. Too
often, however, college graduates are finding student loan
debt is hindering their future goals.
A recent study by the National Association of Realtors and
SALT, a consumer literacy program provided by the non
profit American Student Assistance, has found older mil-
lennials between the ages of 26 and 35 are carrying sizable
student loan debts. With balances between $70,000 and
$100,000 still remaining on years-old loans, this demo
graphic’s ability to buy a home is greatly compromised.
While other factors have contributed to the decline in
the housing market, a report released in August 2017 by
the U.S. Federal Reserve Bank of New York explains that
student debt accounts for up to 35 percent of the decline.
Roughly 32 percent of people in their 20s owned a home
in 2007, but that number dropped to 21 percent in 2016.
Respondents to various surveys, including those by NAR
and Pew Research Center, have said that student loans have
made it more difficult to buy homes.
This is not the only potential pitfall of student loans. Con
siderable student loan debt may also contribute to weaker
spending among young adults and less wealth accumulation
through the years. It may also delay travel plans, marriage
plans and other large purchases that are often the markers
of an established and secure future.
The Federal Reserve Bank report suggests that every
additional $10,000 in student debt is associated with a
1.5 percentage point decline in the probability of buying a
home by the age of 30. Furthermore, the report also states
that almost half of people between the ages of 23 and 25 are
still living with their parents.
Of those who were able to purchase a home, they are still
carrying a median student debt of $41,200, says American
Student Assistance. That figure actually surpasses the aver
age annual income of $38,800.
“The tens of thousands of dollars many millennials needed
to borrow to earn a college degree have come at a financial
and emotional cost that’s influencing millennials’ housing
choices and other major life decisions,” said Lawrence Yun,
NAR chief economist.
Student loan debt may be compelling some millennials
to take second jobs, work in careers outside of their fields
of study and delay marriage and starting a family. Stu
dent loan debt also is affecting millennials’ ability to save
for retirement. The NAR report found that 61 percent of
respondents at times were not able to make retirement
contributions.
Consolidation of student loans, refinancing for lower
interest rates or extending the term of the loan to make
payments more amenable are ways to alleviate some of the
burden of student loan debt. Flexible payment plans and
better loan counseling can help as well.
Many millennials are finding that student loan debt is
compromising their ability to secure their financial futures,
which can have far-reaching consequences.
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Be aware of all of the costs for college
College is often met with excitement and interest by stu
dents pursuing their passions and what they hope will be
fulfilling, lucrative careers. And the rising costs of college,
coupled with the growing number of students taking on sub
stantial debt to finance their educations, make it necessary
that prospective students consider their earning potential
when deciding on a major.
According to the College Board, the average cost of col
lege tuition and fees runs approximately $34,740 at private
colleges, $9,970 for state residents at public colleges, and
$25,620 for out-of-state residents attending public universi
ties. Canadian citizens studying in Canada can expect to pay
$6,571 per year, according to Statistics Canada.
The cost of tuition and room and board may catch parents’
eyes, but there are some lesser known expenses associated
with college that can make attending school even more ex
pensive. According to Cappex.com, a website offering ideas
on how to pay for college, the extra costs of college can cost
between $250 and $500 per month.
The following are some lesser known expenses that col
lege students and their families may need to budget for this
school year.
• Transportation: Commuter students will need to drive to
and from campus, which involves budgeting for gas, repairs
and auto insurance. Students who live on campus may be
subjected to a high fee for a resident student parking pass.
Colleges in the United States earn an average of $4 million
to $5 million in parking revenues each year, according to the
most recent rate study from the National Parking Associa
tion. A typical four-year college or university in the United
States charges about $635 per space for the school year.
Other students use public transportation or ridesharing
services to get around. Those fees can quickly add up, too.
Students attending school far away from home also need to
budget for plane tickets home during the holidays and other
breaks.
• Fraternities and sororities: Many students join Greek
organizations to fully immerse themselves in the college
experience and make new friends. Many of these groups
charge fees to prospective pledges and then semester dues
once students are accepted. Parties, trips, living expenses,
and other expenses may come up as well.
• Added fees: Many colleges and universities charge tech
nology fees, sports center fees and activity fees. Exploring
these fees in advance of the school year can help families
create accurate budgets.
• Dining out: Families spend hundreds of dollars on
campus meal plans per semester, but students also like to
visit local eateries during the school year. Snacks, lunches
and dinners purchased from such establishments can cost
hundreds of dollars per year. Farmer’s Financial Solutions,
a division of Farmer’s Insurance, says off-campus dining
expenses cost an average of $770 a year.
• School supplies: A new laptop or tablet, textbooks and
other supplies a professor requires can cost thousands of
dollars. The College Board estimates students spend $1,300
on books and supplies in a typical school year.
The cost to attend college extends beyond tuition and room
and board. Many additional expenses can stretch families’
budgets.
Hftjc Georgia
How to ask for a letter of
recommendation
Knowledge, skills and personality can get students far, but
having the right people in their corners can open doors for
new opportunities that students might otherwise never have
considered. Perhaps this is why recommendations are so
coveted when applying to schools.
Asking for a letter of recommendation is something that
should be done with forethought. The correct approach and
proper timing can mean the difference between receiving a
recommendation or not.
Who to ask
The first step for students is to decide who they want to ask
for a recommendation. Select those teachers who know you
well or can validate how you performed or improved in class.
Opt for a teacher whose class you recently took so the rec
ommendation reflects the student you are today and not the
student you might have been when you were younger.
It can also help to ask for a recommendation from teachers
or staff who have sufficient experience. Their input may
carry more weight than someone whose career is less accom
plished. A well-established teacher who leads a class that
pertains to your academic goals is a good fit.
Remember to consider the requirements of a college or uni
versity as well. Schools frequently ask for recommendations
from specific people, such as a teacher in a certain subject.
Ask early
Teachers may be inundated with college letter recommen
dation requests around application deadlines and at the end
of semesters. It’s better to leave plenty of time than to put
teachers under pressure. The same rule applies to anyone
else you’re asking to write you a recommendation.
Request in person
Underscore the importance of the recommendation by
making it a personal request. Schedule an appointment with
the individual and discuss why you believe he or she would
be the right person to provide the recommendation. Remind
the person of your attributes and point out something that
exemplifies your skills. Speaking face-to-face shows respect
and gives you the advantage to make your points personally,
rather than through email.
Make the process easier
Provide all of the necessary items to help the person along.
This can include a brief resume, academic progress report,
required forms, and so on. Also offer any college- or employ
er-directed requests. As the deadline looms, offer concise
reminders that you will need the recommendation. Offer to
pick it up personally. Make copies or scan and save the origi
nal just in case a mix-up in the admissions office occurs.
Recommendations are a key part of landing a job or being
offered acceptance into a college or university. Asking the
right people early will translate into recommendations that
paint an accurate picture of applicants.
To the Class of 2020:
Your graduation year has thrown
you a major curve-ball. I admire
how you, teachers and parents
have stepped forward to home-
plate and did your best to knock
it out of the park! I will be praying
that God blesses your lives and
careers paths ahead! Much respect
for all who graduate in 2020!!
Wade Yoder
Peach County Commissioner Post 5
Wade Yoder Storage
Buildings etc.
Valley Athletic Club