The past few batches of graduates have been affectionately termed the Boomerang Generation. After obtaining college or graduate degrees, many are returning to their parents’ home and living with them. While many families make due, this is far from the parents or children’s ideal. Fortunately, some of the strain can be lifted.

STUDENT LOANS, HOW BIG OF A PROBLEM ARE THEY?

The New York Times reports that as of 2014, one out of every five graduates was living at home with their parents rent free, primarily because of the high costs of student loans. Six out of ten graduates gets financial aid from their parents to help make ends meet. Gallup provides a more detailed breakdown:

• 51% of 18 to 23 year olds live at home
• 14% of 24 to 34 year olds live at home

In some cases, these graduates may even be married. Many of them have had to take part time jobs outside their career of choice. Even more put off having children because they don’t have their own home or a secure job.

Establish a Plan

There’s nothing wrong with graduates returning home for a time. The problem develops when they start to become a burden or fail to move on with their lives. Living at home, even if it isn’t ideal, still tends to feel safer. If you need to return home, then establish a clear plan. Don’t make it overly general like “get a job, make a lot of money, find a house.” Instead think about the specifics. Plot out the amount of time, deadlines, and goals. This should include

• Looking for jobs in your general career track
• Timeline for how long you will wait to get that dream job before you start accepting less ideal offers
• Steps you can take to keep yourself on the cutting edge (attending conferences, obtaining additional certification)

Take Advantage of Various Payment Plans

With all federal loans, there are various repayment plans. Some of them will incur a higher rate of interest against you, but they will least lower the monthly required payments. Student loans aren’t supposed to chew up more than 15% of your discretionary income, but you are responsible for reporting that income and qualifying for the payment plans.

Private student loans don’t always off the same protections or repayment plans. You’ll need to make sure that you contact them. Don’t assume that they can’t help you.

Just remember it’s not a guarantee. But you won’t get any grace if you don’t let them know your situation. Just because you have to return to the nest after you graduate doesn’t mean that’s where you have to stay. Many students have been forced to turn back to their parents after problems finding employment and making payments on student loans. This isn’t a bad thing, but make sure you have a plan in place to leave home. You should also be sure you take advantage of various payment plans to avoid falling even more in the hole.

Depending on your situation, you may need further guidance. You can contact the attorneys at the Van Horn Law Group for further advice to get out of this mess.