Students and Their Finances

Students and Their Finances

Core Facts

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What does the future hold for the next generation in modern America? Are the youth of today going to be able to start off on a strong footing with a solid education under their belts and money in the bank? It certainly does not seem that way. Students are drowning in debt.

Student loans account for $1.2 trillion of borrowed money, a truly staggering amount of money. This enormous amount of debt could mean that people affected by the loans and repayments may have to wait to purchase a house or a car longer than those without debt, and it is these larger financial commitments that help drive American economic growth. Equally, it affects their ability to save for retirement, and so their financial well-being is at risk for years to come.

Some students who have taken loans are also struggling to keep their heads above water. 11.2% of those with loans are 90 plus days delinquent or in default. At this rate, they won’t be able to move out of mom and dad’s basement let alone buy their own home.

Getting a second job will be on the cards for a lot of college kids, but will they be able to pay off their loans once they enter their chosen field of study?  A good way to get on top of student loans is pay off more each month than your monthly payment. This way, if you can afford it, you pay off your loan sooner with less interest, and so you save time and money. Doing this will decrease the overall cost of the loan over time. Once the loan is paid off, every cent you were paying towards student loans is now free for you to use towards whatever else you earmark it for. Planning for retirement is probably a good way to go, especially if you can set aside some money every month at that point. 

Students are in trouble as they are in debt, but, if they can figure out ways to decrease their debts or eliminate them over a shorter period, the American economy will benefit, and everyone wins. 



Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC


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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Lawrenceville, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 800-367-3000 Visit our website:

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Jake Mendlinger
Account Manager
516.829.8374 X 232

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