College students fear student loan debt will impact their future housing

More than one-third of current college students believe they will have to move in with their parents after their graduation.

A recent online survey conducted by Harris Poll on behalf of the American Institute of CPAs (AICPA) interviewed 751 college students who enrolled in fall of 2015.

Three-quarters of students surveyed said that their student loan debt would require sacrifices in their lives after they graduate. Of the respondents, 40 percent said that they would have difficulty buying a home and 37 percent said they plan to move back in with their parents after graduation.

Nearly all- 99 percent– of students said that personal financial management are extremely or very important, yet their actions do not necessarily represent that.

According to the survey, 59 percent of students who have student loans said their loans will be paid off before 2025, but 79 percent didn’t know exactly how much they will have taken out in loans in total, by the time they graduate.

More than a third of students have no idea or only a vague idea of how much they will owe. Forty-three percent had a “general” idea of the amount of their loans, but only 22 percent knew the exact amount of their loans in total by graduation.

Eighteen percent of students with loans didn’t know how long it would take them to pay them back and 6 percent said they had never thought about it.

“While a college education is increasingly essential in today’s economy, student loans take years to pay off and can cause individuals to put their life’s ambitions on hold,” said Greg Anton, CPA, CGMA, chair of the AICPA National CPA Financial Literacy Commission.

The National CPA Financial Literacy Commission suggests students take these tips to heart in managing their student loan debt.

• Do not take out more in total student loan debt than you can reasonably expect to earn in your first year in the field of your major.
• Exhaust every available source of “free” money before getting any type of student loan. Research has shown not all students eligible for Pell Grants apply for them.
• Meet with a financial advisor at school to discuss available scholarships.
• Be aware of the difference in pay-off options between Federal and private student loans.