How to Manage Your Teen's College Loans and Debt

Is your child in or applying to college? This year, nearly 1.8 million graduating college seniors left school with student loan debts-$22,500 on average. Teen Vogue's Leigh Belz outlines some important tips to help keep your child in the black:

1. Generation Debt: The amount of outstanding loans has more than doubled in the past ten years, growing from $41 billion to $85 billion. Of the loans taken out, 77% are federal and 23% come from private sources, like banks. Know that private loans can be riskier, have high or variable interest rates, and may require a cosigner. Be aware of the terms before taking one out!

2. Do Your Homework: Many students think they won't qualify for state-aid but there are several routes to go for assistance. Investigate subsidized federal aid programs (where the government pays the loan interest while you're still in school at least half-time) before taking out unsubsidized federal and private loans.

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3. Educated Decisions: Look into public schools with your child, where tuition is, on average, $18,558 less a year than that of four-year private colleges. Staying in-state helps too-fourteen states actually offer grants to resident students with at least a B average who attend a state school.

4. 'Til Debt Do You Part: Loans are usually ironclad-meaning they stick with you even if you go bankrupt! Experts recommend that monthly student loan repayments not exceed 10 to 15% of a grad's monthly income.

5. Credit Crunch: A CBS News report showed that entering freshman are offered an average of eight credit cards during the first semester of school. Make sure you know if your child has applied for a credit card and always make sure to read the fine print of the credit card agreement. Initial zero-percent interest rates often expire after the first year.

Head over to Teen Vogue for resources and more tips for managing school debt with your child.

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