ó When the scholarship and grant money that Danielle
Newman received to attend the University of Pittsburgh
did not cover the full price tag of attending, the
18-year-old freshman used a student loan to cover the
difference. Facing higher costs as an out-of-state
student, she already assumes she will need student loans
for the remainder of her undergraduate education.
borrowed $5,500 this year. I plan to borrow $6,500 next
year and $7,500 the year after that," said the
rehabilitation science major from Newark, Del. "I
will finish my undergraduate degree in three years,
partly because it is so expensive."
hard reality Newman has embraced is that she will likely
need to move back into her parentsí home after she
graduates, so she can make payments on her student loans
while she gets started in the real world.
definitely believe that I will live with my parents for
some period of time before I get my own place after
graduation," she said. "I havenít talked to
my parents about it because itís so far down the road.
Iím an only child. I think they will be OK with
with historic amounts of student loan debt, the
boomerang kid phenomenon ó defined by college
graduates who move out to attend higher education, but
end up landing back on their parentsí doorsteps ó
has become the new normal.
to a Harris Poll done on behalf of the New York-based
American Institute of CPAs, more than one third of
college students who enrolled in the fall of 2015 plan
to live at home following graduation due to student loan
debt. They also thought they might have to take a job
outside their field of study.
average, college students with loans thought they would
be able to pay off loans in nine years after graduation.
Only 18 percent said it would take more than 10 years. A
quarter didnít know how long it would take; and 6
percent of those surveyed said they had never given it
Coghill, CEO of Coghill Investment Strategies, based in
downtown Pittsburgh, said the potential downside of
young adults moving back in with their parents after
college is that they could get stuck in a stage of
natural tendency as a parent is to want to take care of
your child regardless of how old they are," she
said. "As a parent, you should not revert to taking
care of them as a child, such as cooking their meals,
doing their laundry and paying their bills. That phase
of life when they return home should be different than
it was before they left.
generations went to college, got out, got a job and
started a family," Coghill said. "Now they are
entering a new phase of life where they need to regroup,
get a job and start paying down their student loan debt
before they can move forward into a true state of
fact that one-third of college students plan to live at
home after graduation is not new information, according
to Mark Kantrowitz, a college loan expert based in Las
Vegas. He said that trend has been going on for about a
decade now. The good news, he said, is that things have
not gotten worse.
back home is one of the best ways to cut expenses,"
suggestions he offered recent graduates is to work a
part-time job in the evenings or weekend, in addition to
their main job. They could also cut housing costs by
getting a roommate, selling their car, using public
transportation, cutting back on cable, cellphone plans,
eating out and entertainment.