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Students lack college savings, study finds

Experts urge students and parents to start saving early, if possible, to avoid debt.

BANGOR (NEWS CENTER Maine) — A recent study conducted by Junior Achievement and Citizens Bank shows that one-third of high school juniors, seniors and college freshmen have less than $1,000 saved for college.

According to the study, students admit they haven’t discussed paying for college with their parents and really don’t know what it entails.

"I remember as a kid actually having classes in school about your checkbook and how to save money and I don’t see a lot of that any longer," said Jonathan Plummer, product delivery manager for Consumer Lending and Bangor Savings Bank.

Maine does offer savings programs designed to help students and their families pay for their education.

Mila Tappan, manager of College Access Outreach at F.A.M.E. said, "it's never too early to start saving for college."

The lack of college savings results in students taking out more loans. Student loan debt is a burden many students face and across the country — there's $1.3 billion in outstanding debt.

This debt can lead to putting things off, like starting a family.

"Typically, loan repayment on federal loans starts within six months of getting out of school and kids are taking jobs that they weren’t really trained for, just to start making the debt service," said one expert. "They’re holding off getting married, having children. You know, their lives are greatly affected by the amount of debt that they have."

Experts urge students and parents to start saving early to avoid putting themselves in debt.

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