According to College Board data, 51% of undergraduates finish college with student debt. J.P. Morgan Asset Management Head of Education Saving Tricia Scarlata joins Wealth! to discuss strategies for managing college debt.

Scarlata points out that student loan debt is the second largest debt among Americans, behind mortgages. However, she notes that many individuals remain unaware of the true impact their student loans have on their overall financial situation. She advises families to have open discussions about college affordability as children prepare for higher education, encouraging them to explore options that ensure the student's happiness without straining the family budget.

Explaining the long-term effects, Scarlata highlights how student loan debt often snowballs over time, with individuals paying nearly twice their initial loan amount in interest over a 10-20 year repayment period.

"Do the homework," Scarlata advises when it comes to taking out student loans. "Understand what you're getting into. Go to studentaid.gov, look at the website. Look for the updates on what's going on with these federal loans," emphasizing the importance of staying informed about opportunities for forbearance or student loan forgiveness.

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This post was written by Angel Smith