Student debt has become a cloud hovering over the heads of young Americans. In order to get the education necessary to land a well-paying job, many needed to take out large amounts of student loans to be able to pay for college. Even for students whose parents had saved for their education, the skyrocketing costs of college in the last decade meant that many still didn’t have enough to cover everything.
Now, as they face high monthly payments, young adults are seeing their lives negatively impacted. As the following infographic — compiled by Gradvisor, an employee benefit that helps parents enroll in and manage 529 college savings plans — shows, millennials’ lives look very different than previous generations. Sixty-three percent of young graduates have educational debt after graduation. Because of that debt, 25 percent of young adults still live with their parents and 20 percent have put off running their own business.
Fortunately, there is a way to end the Student Debt systemic problem before it seeps into future generations. As the infographic shows, it involves parents and employers working together to improve 529 plan enrollment and general college savings planning. Some highlights from the infographic include:
Only 11% of companies offer 529 plans to their employees.
However, 66% of employees without a 529 plan would enroll in one if their employer offered it through automatic payroll deduction.
On average, the parental cost of a four-year public university is $57,862. For a private university it’s $96,626.
By saving $200 a month in a 529 plan, parents can save enough to pay the entire bill for a four-year public university.
Check out the full infographic to find out more information on how parents and employers can do more to prepare for the cost of college.