Here's a secret to help your child grasp the real impact of student loan debt: Don't just think about the huge sum you've borrowed — focus on what you'll repay each month.
About 30 percent of college students said they feel confident with the financial terms associated with student loans, according to a survey by College Ave Student Loans. The lender recently polled 1,075 undergraduates.
The biggest issue that these young borrowers are missing is the fact that, at some point soon, they'll have to start repaying their loans each month.
"At the end of the day, you'll be making a monthly payment in the future and that will determine your capacity to do other things, such as paying rent that you can afford and buying a car," said Joe DePaulo, CEO of College Ave Student Loans.
Here are a few tips to prepare your student for the reality of loan repayment.