This is Kathi! My husband and I recently returned from a vacation in New England and, while there, we visited Newport, Rhode Island. If you've never been to Newport, it is a coastal town steeped in wealth. Several mansions (48,000 square feet and upward!) dot the coast and the city blocks nearby. Among these mansions sits the college campus of Salve Regina.
As we toured these affluent neighborhoods, I couldn't help but ask "So - how much does it cost to attend Salve Regina?" The tour driver replied that annual tuition is about $60,000/year. (A little quick math and I have a quarter-million dollars for an undergraduate degree!) It isn't particularly surprising, in this case, because the purchase and maintenance cost of their mansion-like campus has got to be exorbitant.
This was a startling picture for me of "the cost of college these days." I don't mean to generalize or make assumptions. It is quite possible that no one on that campus needs student loans or funding. They might be from affluent families who prepay for the privilege of attending there. But Salve Regina or not - college is expensive, most people don't have the means to pay for it, and debt is a "given."
After more than three years on pause, federal student loan payments begin again starting in October. For the 43 million Americans holding this debt, restarting this monthly payment averaging $503 might come as a shock. Monthly budgets will feel the pinch and the "month left over at the end of the money" will be even greater. This may bring significant stress to American households, especially those who did not set money aside during the 'pause.'
Unfortunately, many pre-retirees step in to help their adult children with debt, derailing their retirement plan in the process.
If you want to have a conversation about your situation or how you can walk alongside your adult children as they navigate this debt, we would be happy to help.
Student Loan Update
September 15, 2023