Nearly half of Americans rely on the previous generation for financial support, according to a recent report from Northwestern Mutual. And nearly 1 in 5 worry they'll never be able to achieve financial independence. Part of what's making it so hard for younger Americans to support themselves is how much more expensive life is these days.
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Here are 4 moves to make before the window closes However, when the Bank of Mom and Dad isn't available to make withdrawals, that's often when other family members or even friends are called upon to provide financial support. But helping each other through is what family's for, right? That's what our hypothetical character Paul told himself over a decade ago when his younger brother Darren was getting ready to head off to college.
Paul had recently graduated and got his first real job — and since he'd had to hustle all through college to pay his way, he wanted to spare Darren that stress. Darren promised he'd stay current on his payments and that he'd finance the loan with just his name on it as soon as he could. For years, everything seemed fine.
But now Paul recently learned the loan is several months past due and his brother has stopped paying — and seems to be dodging his messages too. The lender has begun calling Paul directly, warning that they'll soon report the late payments to the credit bureaus. Taking over the loan payments could undo years of work Paul has put in digging himself out of credit card debt, but letting it default could damage his credit.
What can he do now to prevent this from tanking his finances completely? Recent changes capping the amount students (and their parents) can borrow in federal funds is likely to create even more situations like Paul and Darren's in the future. That's because with a lifetime limit of $257,000, one expert told CNBC private student loans may double as a result.
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