One situation that may put young people in a place where they have to get out of debt is how they approach their student loans, although they do have options when it comes to funding their education.
Wells Fargo recently announced it is offering a new student loan product that gives parents the option of making interest-only payments for as long as 48 months while their child is attending school. Those who take up the loans have as much as 15 years to repay them, the company said.
“We understand that financing student education is one of the most important decisions families make,” Kirk Bare, head of financial services for the company, said. “And now that other funding options may not be as available as they were in the past, our customers are searching for new ways to cover those expenses.”
However, parents may consider options made available through the federal government, according to a report from CNNMoney.com. For example, a federal PLUS loan may offer additional flexibility if parents find themselves unemployed. These loans come with a fixed 7.9 percent rate over 10 years.