Student Debt Crisis?

Nov 20, 2014 by

I have a guest post for you today, from freelance journalist Ivan Serrano, who lives in northern California, featuring a startling infographic illustrating the looming US student loan debt crisis.

Just when you thought student loan debt was bad, it has actually gotten worse over the last year.

Today, one out of 10 Americans are in student loan debt with the average graduate owing $29,400. In addition, three out of 10 borrowers have payments that are at least 30 days overdue. Clearly, student loan debt has become a growing crisis in America.

Despite the stress and headaches involved with student loan debt, a college education remains a valuable investment for many people. In fact, people who have a college degree make 98 percent more than those without a degree. This is why it’s important for students and families to plan ahead of the cost of college.

The only solution to decreasing student loan debt is to take control of your future. If you want to avoid high interest rates and borrowing large sums of money, it’s a good idea to create a plan for your college education. Here are some tips to help you decrease the long-term burden of student loan debt:

Choose Your School Wisely

Although it might be your dream to attend a school such as Columbia University where tuition costs $47,462 per year, it might be a better idea to attend a state university or community college. Nearly any college you attend will provide you with a valuable education. This is why it’s important to price out your options before you make a commitment to a pricey university.

Create a Realistic Budget

Let’s face it, college is expensive. Regardless of how much your education costs, there are some ways you can cut back on how many loans you must use for college. For example, you could cut expenses by living at home or getting a part-time job to pay for housing.

Understand Your Loan Terms

Six months after you graduate from college is when you have to start paying back your student loan. It’s important to write this date down so you don’t have to miss your first payment. In addition, you should also pay off the loans with the highest interest rates first. This will help you get a head start on your student loan payments after graduation.

Student debt is scary, but it’s also beneficial for your career. To learn more about how the future of student loan debt will impact your education, check out the following infographic:

student loan debt

 

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