The effect these rising costs have had on young adults hasn’t always been predictable, however. Here, we explain some of the more surprising ways higher tuition is affecting the way current students and recent grads work, play, and live.

1. Enrollment in two-year colleges has risen.Rising college costs haven’t necessarily driven students away from pursuing a degree, but many are chasing that goal in a new ways. Community colleges have seen a steady increase in enrollment as economic troubles and sky-high tuition fees have put traditional schools out of many students’ reach. Two-year colleges are often much cheaper and offer students more flexibility in working while they attend classes. For some, they’re a great way to get basic courses out of the way before moving on to a bigger, more prestigious school. Whatever the reason, community colleges are playing an increasingly large role in higher education, a fact highlighted by President Obama in a 2010 speech on education and an accordant $12 billion dollar program to fund two-year schools.
2. Fewer young people are able to afford to buy a home.When you’re carrying tens of thousands of dollars in school debt, saving up the money to buy a home often just isn’t a possibility. As tuition rises and students are forced to take out bigger loans to pay for school, fewer young people are able to fulfill the long-standing American dream of home ownership. Only 57% of people between 25 and 44 own a home today, a 4% decrease since 1980. While overall ownership has increased, young people are increasingly unable to purchase a home, and the current economic crisis and the income uncertainty it brings haven’t helped matters. Add to that the nearly $30,000 in debt many college grads carry and you have a recipe for an extended period of renting.
3. Fourteen percent of college grads delay marriage because of financial concerns.There is no way around it: weddings are ridiculously expensive. Slap the word “wedding” on something and the price goes up tenfold. They are so costly, in fact, that many young college grads are delaying having one until they’re older and more financially stable. Playing a big role in this choice to wait is college debt. Sixty-five percent of college students leave school with debt, with 25% owing more than $25,000. That debt means weddings often have to wait until they are paid down and money can be saved.
4. College grads are having fewer children, later in life.A recent survey found that debt, largely from college, was causing 20% of young adults to delay having children, even if they wanted them. Kids can be pricey, and college debt may mean that many young couples have to hold off on adding to their family until they can get loan debt under control. While waiting to have children may be part of a larger social change, it’s clear that college debt (and the recession to boot) hasn’t made it any easier to start a family, with the average age of having a first child at about 30 for college graduates.
5. More students are starting businesses.Can’t afford an expensive business degree? That’s OK, because you don’t actually need one to start a business. While young adults still start businesses at lower rates than other age groups, their share of entrepreneurship has been growing steadily. It’s not hard to imagine why. With tuition debt running tens of thousands of dollars and jobs scarce, young people have to make ends meet somehow. Many young grads even start businesses before they graduate, working on their degrees and a business endeavor at the same time. In a survey of 1,000 recent grads and current students, the Young Entrepreneur Council found that 36% started a business while in college and 21% started a business because of unemployment.
   6. More students than ever are applying to college.One of the most surprising realities of rising tuition? It hasn’t stopped students from applying to colleges. In fact, applications have reached near record levels at many top schools this year, with big names like Harvard and Yale receiving in excess of 30,000 applications. While college costs are high, it seems that most students still see school as a good investment and are willing to go in debt, sometimes to the tune of $100,000 or more, to get a degree they think will help them get ahead.
   7. More young people work outside of their majors.Today’s college grads often don’t have the luxury of waiting for a great job in their field to come up or taking on a wealth of unpaid internships. Loans generally start needing to be paid after graduation, and more students are feeling the pressure to get into the working world any way they can to make ends meet. With a job market that’s already tight, this often means taking on work that’s in a different field or sometimes accepting jobs that don’t even require a college degree. It’s a phenomenon that many, though not all, young adults find frustrating and can have significant impacts on their career prospects, dreams, and finances for years to come.
   8. Careers in high-demand fields are often impractical to pursue due to high costs that cannot be recouped.Why aren’t more college students choosing a degree in much-needed fields like social work, elder care and teaching? Because often they can’t make enough working in these fields to pay back the loans they got so they could work in them in the first place. Public service jobs often pay little compared to private sector jobs, making it difficult, if not impossible, to keep up on loan repayments. In fact, nearly one quarter of grads from public universities carry debt that would be unmanageable with the starting salary of a public service worker. The numbers are even higher for those who went to a private college or university.
   9. Growing numbers of grads move back in with parents after graduation.Graduated in 2011? Chances are pretty good that you or someone you know is living with parents, despite four years of relative independence. A whopping 85% of this year’s graduating class will be forced to move back home in order to help cope with student loan debt. Even more troubling is that often these moves back home are preceded by several months of unemployment, as a tough job market makes it increasingly difficult for new graduates to find work. Without a job, many must move home and get financial help from parents or guardians in order to make even minimum payments on loans.
   10. Many parents may be even more ill-prepared for retirement.Any financial planner would tell you it’s a huge mistake to take money out of a retirement account to help pay for college, but that’s just what many parents are doing these days. Unwilling to saddle their children with loads of debt, many are tapping into their own reserves to cover tuition. In 2011, four percent of parents withdrew money from their 401(k) or IRA, and another one percent took a retirement account loan to help pay for college. With many adults already woefully unprepared for the high health care and living expenses they’ll face in their older years, this increase in retirement fund spending for college could have far-reaching ramifications.
       11. College completion rates are falling.High tuition rates may not have affected how many students head to college, but they may be playing a big role in how many students drop out partway through their college education. For many young students, the costs of tuition can often become too much to bear, especially if a parent or the student himself loses a job. A study by Complete College America found that more than 40% of public college students attend part-time (one assumes so that they can work while attending school) and only a quarter of these part-time students will ever graduate. Rates aren’t so great for full-time students either, with only 60% completing their bachelor’s degree within eight years.
       12. Fewer students are heading to grad school, despite a tough economic outlook.Usually, a highly competitive job market and high unemployment drive students in droves to getting more advanced degrees. While some are heading back to school, grad school application rates are actually on the decline, and part of it may be due to high tuition. Students who already have tens of thousands of dollars worth of debt often don’t want to add to the problem by accruing more. Coupled with a poor economy, this factor is a big part of the reason that the number of students in grad school dropped for the first time this year since 2003.
       13. Research shows that college debt may actually cause a jump in self-esteem.While the results of this study have been hotly contested (if not outright mocked by others on the web), it raises some interesting questions about the unexpected positive effects of college debt. Researchers in the nationwide study found that instead of feeling stressed out about their debt, many students felt empowered, in control, and reported a boost in self-esteem. Critics of the study are careful to caution, however, that the results may simply be a reflection of the degree, not the debt, and that those with greater confidence are more likely to take out more debt to pay for school (with the belief that they’ll be able to find a high-paying job after graduation, most likely).
       14. Grads often delay medical or dental care.Once grads are no longer being cared for under college health care plans or their parents insurance, the high cost of health care has left many putting off yearly physicals, getting dental care, or taking care of nagging medical issues. With many already tens of thousands in debt for college, there is little extra money for medical care or health insurance. In facts, 27% of college grads admit to delaying a medical or dental procedure due to financial concerns. As health care costs grow at a rate almost as fast as college costs, the grads of the future could be a pretty unhealthy bunch.
       15. Fewer low-income students are going to college.High college costs seems to be driving away low income students at greater rates than those in the middle and upper income ranges. Even with a wide range of aid programs from the government and private sources that can often cover much of the costs associated with going to college, low-income students are increasingly seeing college as something out of their reach. Enrollment at four year colleges for low-income students decreased 14% between 1992 and 2004, as the average price of attendance for low-income students grew from an average of $7,570 to $10,620 in that same 12-year period. This averages about 48% of family income, which already sounds like a lot, but is even more troubling when you consider that college costs for middle income families come out to only 26% of family income. Oddly enough, low-income students are much less likely than their higher income counterparts to take on loans, which many believe may be why numbers of low-income students are dropping at an alarming rate.

       Source:  Online Universities

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Are you strapped with student loans?

Going to college, whether online or off, close to home or in a foreign country, can be an exciting, enlightening and ultimately life-changing experience. While it may be well worth it in the long run, it comes at a high cost to many students, and debt after graduation can be crippling for those who don’t have high paying jobs or who cannot find work at all. Finding a way to manage your finances and battle down that debt is a common struggle, so why not share in it with others who are where you are and who’ve come out on the other side? Here are some great blogs that will help you learn about debt reduction, pay off your debts and become a more financially savvy adult.

Education

These blogs will teach you the basics of managing your finances.

1. Engineer Your Finances: Want some great advice on how to structure your financial situation so that you’ll be financially secure instead of in tons of debt? Give this blog a read, or two.
2. I Will Teach You to Be Rich: One of the most popular PF blogs on the web, this blog will show you how to make the best use of your income.
3. Get Rich Slowly: It’s not going to happen overnight, so learn how to make your finances work for you the slow and steady way.
4. MintLife Blog: While using a site like Mint can help you really keep track of your finances, you don’t have to use it to appreciate the great advice offered on this blog.
5. Realm of Prosperity: Who doesn’t want to be prosperous? On this blog, you’ll get financial advice geared towards young adults.
6. Bargaineering: From saving to smart spending, check out this blog for all your financial advice needs.
7. Consumerism Commentary: Don’t be stupid when it comes to spending your money. Learn how to spend smart, save and plan for the future on this blog.
8. Independent Beginnings: Being out on your own and managing your own finances can be tricky. This blog offers help for young people in need of personal finance advice.

For Students and Recent Grads

Geared towards those who’ve just emerged from school or who are due to graduate soon, these finance blogs deal with a wide range of grad finance issues.

1. Studentnomics: This blog is all about helping young people like yourself pay off their students debts, save their money and enjoy living life in the real world.
2. The Frugal Law Student: Anyone with crushing school debt can understand the concerns of this law student struggling to save and make ends meet.
3. 20 Something Finance: As you enter your 20s, you’ll learn more than a few things about personal finance. This blog is there to help you along the way.
4. Poorer Than You: Check out this site for posts on financial issues that affect students and young grads, like school debt, building net worth and much more.
5. Money Under 30: There are some money issues that are a lot more important to fresh grads and twenty-somethings than those over 30. Learn more about them on this site.
6. Grad Money Matters: Your education may have helped get you a job, but it doesn’t guarantee smarts when it comes to money. Learn more about financial issues that all grads should be worried about here.
7. Green Panda Treehouse: The financial articles on this blog are geared towards money issues that new grads face, from finding a first post-college job to paying off those horrible school debts.

Debt Blogs

Through these blogs you’ll find the information and inspiration you need to help pay off your student debts.

1. No Debt Plan: These bloggers share how they’re working their way out of debt and into financial security.
2. Stop Buying Crap: Want to focus on getting your school debts paid off? This blog could offer the solution.
3. Man Vs. Debt: Even with kids, this young dad shows that it is possible to pay off even huge amounts of debt.
4. Debt Free Adventure: If you’re unsure how to even begin paying off debts, give this blog a read. It offers pointers on everything you’ll need to know to get rid of debt and get on your feet.
5. Single Guy Money: If you’re like many college grads, you’re single, have your first job and not much practice managing your money. This blogger shares your struggle, so read on to see how he got through.
6. The Simple Dollar: The articles on this blog are easy to understand and can help you learn how to save more and pay off your debts before doing anything else.
7. Debt Hater: Hate your debt? So does this blogger. Learn what measures they’re taking to battle debts and how you can follow suit.

Inspiration

These bloggers prove that paying off your debt really can be done, and they’ll show you how.

1. TeacHer Finance: Teachers don’t make big bucks, but even on a limited budget this young teacher is trying to power through paying back her debts.
2. My Money Blog: This blogger is working towards financial security bit by bit, and you can follow along here.
3. Budgets are Sexy: Learn why creating a budget, however boring it sounds, can really be a boon for your finances. Don’t think so? This blogger shows off just how it’s helped.

Loan Blogs

Learn more about student loans, from consolidation to payment options, on these sites.

1. Forgive Student Loan Debt to Stimulate the Economy: This blogger supports helping students and the economy at the same time by forgiving loan debt.
2. Student Loan Blog:From finding a job post-college to understanding your loan repayment, this blog has loads to offer debt-saddled students.
3. The Credit Blog: Loans are a form of credit, and you need to learn all you can about them to best pay them off.
4. Financial Aid News Blog: This financial aid news site offers not only information about programs to help you pay back your debt, but helpful information you might not find elsewhere.
5. College Loan Consultant: Learn more about what kinds of loans are out there, how to repay them, and what kind of tax breaks you can get from this site.

Four-year college graduates are becoming increasingly less common, so graduating early is quite the achievement. During a time in life when many of your peers are still uncertain about what they want to do and how they want to go about doing it, you can set yourself apart by skipping that whole emerging adulthood stage and entering the real world. If you’re a driven student who isn’t afraid of growing up, then consider the following reasons to graduate in three years.

1. Save Money: As you well know, the cost of tuition is continually rising, making it increasingly difficult for average middle class families to afford four or more years of tuition and fees. According to the College Board, even after financial aid, in-state students at public colleges pay an average of $7,605 per year, while students at private colleges pay an average of $27,293 per year. Graduating in three years either saves your parents a lot of money or prevents you from going further into debt. In fact, because of those reasons, some colleges have designed special three-year degree programs that efficiently utilize students’ time by requiring 18 hours per semester and commitments during summer and winter breaks.
2. Make Money: Eating Ramen Noodles and fast food, drinking cheap beer, staying with five people in a hotel room during trips, and everything else that comes with the college experience may be fun in the beginning, but after a while it begins to take its toll, leaving you wondering what life would be like if you didn’t have to live dollar to dollar. The full salary that comes with your first job after college will enable you to live more comfortably and enjoy those many, many things you couldn’t previously afford. Additionally, you’ll get a head start on repaying your student loans and eliminating debt so that you’ll be able to do more financially later in life.
3. Gain Work Experience: By the time most of your friends graduate, you’ll more likely than not have already received at least one raise and possibly even a promotion. The same work ethic it took to get your degree in three years will pay off during your career, literally, and starting early will allow you to achieve more at a young age. Nothing substitutes for real work experience.
4. Become Independent: People in their 20s these days aren’t nearly as financially independent as the group was decades ago when fewer people attended college. The economy hasn’t helped matters, but it’s certainly not impossible to find a decent job and break the dependence on mom and dad. Graduating early gives you a head start, enabling you to no longer have to answer to your meddling parents. Plus, the self-satisfaction that comes with knowing that you’re doing it completely on your own is invaluable.
5. Save Early for Retirement: The earlier you begin your career and establish yourself, the earlier you’ll be able to save for retirement. The recent economic crisis has shown that retirement is far from a guarantee, and it takes foresight and financial discipline to ensure your golden years won’t be spent as a Wal-Mart greeter. If your employer offers you a 401k plan, use it and add as much money as you can. Or contribute to a Roth individual retirement account. Retirement will become more of a reality, and you may even be able to retire early depending on how much you put into it.
6. Escape Your Lousy School: Is your school failing to meet your expectations early in your college career? Are your professors uninspired and aloof? Have you been screwed over by the financial aid or bursar’s office? Does your personality not quite mesh with the campus culture? Graduating early can be your ticket out of your lousy school and an end to a lackluster college experience. Hey, college isn’t guaranteed to be the time of your life despite what popular culture has told you.
7. No More Schoolwork: There’s no doubt that graduating in three years is an arduous task. It requires taking no fewer than 15 hours per semester and the sacrifice of off-time, like summer and winter break, in order to accumulate the 120 or so hours you’ll need for your degree. That means you’ll be studying and stressing over exams and projects year-round, while many of your friends will be living it up on their five-year plans. When you graduate, however, you’ll have two years to point and laugh at them as they continue to deal with the general inconveniences of college, and you’ll be able to take satisfaction in the fact that you won’t have to worry about that stuff again.
8. Jump Early into Grad School: On the other hand, if you plan to seek an advanced degree, you’ll be able to jump right into grad school without losing much time. This can be enticing if you enjoy academia, as grad school is more of an intellectual challenge. You’ll be expected to exhibit more in-depth and applied knowledge, and thus your class experiences will be more engaging and enlightening. You’ll also encounter research opportunities, which will enable you to leave your own mark on your discipline. Of course, by the time you finish, many of your friends will be completing only their first degree, reinforcing that you’re ahead of the game. And if you plan to get a PhD, you’ll spend one fewer year on your quest to attain it.
9. Time: You’ll have more time in general. Not only for the aforementioned reasons, but also for other things in life, such as getting married and starting a family — if you want to get a head start on that. You could travel or join organizations like the Peace Corps. You could explore alternative professions that may not require a college degree but interest you anyway. You could help out with the family business before jumping into your career. What you do with the extra year or two is up to you.
10. It’s a Challenge: Like Joe Brown said, “A challenge is an opportunity to prove your ability to yourself, and others.” College is where you should build the work ethic and confidence needed to explore those limitless possibilities in life. Students who graduate in three years have high expectations of themselves, and realize that such an accomplishment will set them up for many more accomplishments in the future.

With today’s economic situation, it is becoming more difficult for parents to secure finances to assist with the high fees of residential therapy.  Here is a list of some possible avenues.  Many banks have raised their standards for qualifications (requiring a higher FICO score) among other requests.  Some banks have literally stopped participating in Educational Loans. 

Financial Options

Have you recently discovered the high costs of Boarding Schools, Military Schools, Therapeutic Boarding Schools, Residential Treatment Centers, Wilderness Programs and other avenues of academic and emotional growth assistance?

For the average middle class family the fees can be staggering.  Even people of means can have sticker price shock at the tuition of these programs.  Due to the extensive costs of operating these specialty schools with the appropriate licenses, credentialed staff as well as certified educational accreditations, it is extremely expensive. 

The average cost of private Therapeutic Boarding Schools and Programs is about $4000.00 per month, usually all inclusive.  There is usually a processing fee that is separate from the tuition that can range from $1500.00 – $2500.00.  This fee usually includes insurances, administrative costs, and other various costs such as uniforms, haircuts, toilettes, field trips etc.  Other programs will have an additional fee for uniforms.  When choosing a program, be sure to ask specifically what is included and what extra fees can be expected.  If a private program is less than $3000.00 per month, please be sure to do your research. 

Many programs offer a discount if your full tuition is paid up front.  This is an individual decision, depending on your financial circumstances as well as your family’s needs.

Educational Loans:

Financing these programs can be available to you in a variety of ways.  The Educational Loan is one that is typically used by many families.  There is usually no application fee and allows the family to have a reasonable monthly fee within their financial means.  It is very similar to a college loan.  Key Bank, Sallie Mae, Chase Bank, Clark Custom Loans  and PrepGate are the most common used lenders for Educational Loans. 

College Fund Option:

If a child has a college fund, it may be a good time to use it.  Although we expect our children to go to college, when the time comes and he/she is ready for that step, and you have exhausted your college fund, there are always grants and scholarships to a wide variety of colleges that you could apply for.  Getting your teen the help he needs to ensure he makes it to college is what you are concerned with at this time.

Individual Educational Plan (IEP):

Does your child have an Individual Educational Plan (IEP) through your local school district?  In some cases this may defer some of your tuition costs in respect to the academic component of a Boarding School or Program.  If you have an IEP in place for your child, it is important to ask the school or program you are considering if they work with IEP’s and discuss the reimbursement process.  For more information on IEP’s click here http://www.ed.gov/parents/needs/speced/iepguide/index.html

Credit Line/Home Equity:

Another popular alternative to financing a program is a Home Equity Credit Line.  This can be beneficial to you in a few ways.  Not only is a convenient way to access money that is needed, it can also be a tax deduction in regards to the interest payments.  Please keep in mind, in some cases the program you are sending your child to can also be a tax deduction in regards to medical expenses.  Usually the therapeutic and medical portion of the tuition can be deducted.  Check with your Tax Preparer or Accountant for more information.

Credit Cards:

Credit Cards, although they usually have a high interest rate, may be able to provide you with the initial monies to enroll your child until you are able to access an Educational Loan, Credit Line, or other means of payment.  Many parents will use a Credit Card that accumulates Airline Miles or other beneficial services, and then pay the credit card off within the 28-30 days with their credit line or other financial means. This prevents you from being charged the finance charges.  It can be a way to earn airline travel that can help when it comes time to visit your child if they are out of state. 

Medical Insurance:

Contact your Medical Insurance Provider to see if they cover residential placement.  Some will cover the first 30 days or possibly the therapeutic portion of your child’s stay which is usually one third of the tuition.  PPO’s are typically more likely to cover some costs, however it never hurts to check with your insurance company.  In searching for programs, you may want to ask the program if they accept your insurance or have experience with how much you could expect from your specific insurance company.

Family, Church, or Employer:

Many families will borrow from relatives or in some cases; employers have been known to contribute to the family.  In some cases this could also be a tax deduction for a relative or employer.  Some churches will have specific funds to help families within their parish.  If you are a member of a church or other faith based organization, it can’t hurt to ask.

Scholarships:

Don’t be afraid to ask the program if they have scholarships, some do have limited financial aid, so it is important to ask. 

My Blog on Financing  keeps up with new lenders as they become available.  Always remember your local United Way and see what resources they have available.