Parents of recent college graduates may seem like they are in a better spot than most — they aren't ready to retire and have time to make up for losses in their retirement portfolios, many have made significant headway into their mortgages, and they don't have dependents that need groceries or gas. But the economy isn't letting anyone off easy right now, including this demographic.
According to The Wall Street Journal, many American parents with college-aged kids are battling whether or not they should bail out their offspring. The average student loan in the past year was $22,000, and entry level salaries for new grads are not keeping up with the rise in student loans. On top of their student loans, many new grads come out of school with credit card debt, and without the means to pay these off there's a risk of default and ruined credit.
Credit counselor Bruce McClary observes, "Similar to questions about the overall economy, many parents are wondering, should I bail my kid out? Or let him claw his own way, let him fail?" What do you think?