Young people are often attracted to the bright lights of the big city after graduation, along with the prospect of stealing a deal on a rent-controlled apartment.
But there’s an untold story going on in metro areas around the country.
The rent subsidies those 20somethings are getting aren’t coming from the government…they’re coming from mom and dad.
Parents give college grads an average of $3,000 annually in financial support
The University of Michigan’s PSID Transition to Adulthood Supplement came to a startling conclusion when looking at numbers from a nationally representative cohort of 2,000+ young people from 2007 to 2013.
Some 40% of college graduates in their early 20s receive an average of $3,000 annually from parents to help foot the bill for rent and other living expenses.
As you might imagine, that number varies widely depending on the college major a student selected — or didn’t select, as the case may be.
The New York Times put together the following charts based on the data to illustrate what’s going on:
How to not have to borrow from the Bank of Mom & Dad
Keeping student loan debt to a minimum is key to not needing to depend on mom and dad for money after graduation!
Yet it’s also important to invest in yourself and not skimp on education just for the sake of skimping. After all, college graduates earn more over a lifetime than someone with just a high school degree.
LendEDU has analyzed the risk-reward profile for 752 public and private 4-year colleges and universities in the United States.
Here are the top five schools that will graduate you with the highest earning power and the least amount of student loan debt…
For those of you wondering about the weird acronyms in the chart, here’s a brief explainer:
- CRRI: College Risk-Reward Indicator value (the higher the value, the better!)
- ECP: Early Career Pay (median salary for graduates from that school with 0-5 years of experience)
- DPG: â€‹Debt Per Graduate (average debt per graduate from that school)
There are 50 schools in all on this list that offer you the opportunity to earn a degree that will pay off without killing you with student loan debt.
Want to see the other schools on this list? Click the link below!