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Student loan debts problems
Issues with student loan debt
College debt
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Student loans are the bane of my existence. I graduated with $206k in student loan debt from undergrad and law school, and I’ve spent the last three years repaying my loans and the balance is now at $124k. There have been periods when I felt overwhelmed and didn’t know what to do. I didn’t know how I would be able to make my payments let alone get myself out of debt.
Fortunately, if you can’t make your monthly student loan payments there are options. You can consider five things I’ve listed below if you are having trouble making your student loan payments.
Change Your Repayment Plan
If you have Federal student loans, then you have several repayment options that could lower your monthly payment to make them more affordable. The traditional repayment plan is a 10-year repayment
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First, you may get a lower interest rate through consolidating your loans. Second, you may have additional repayment options, including a 15-year or 30-year repayment plan, versus the traditional 10-year repayment plan. If you can lower your interest rate or get on a longer repayment plan, then student loan consolidation may be a good option for you if you can’t afford your current student loan payments. Make sure you determine whether you’ll get these benefits before actually consolidating.
Refinance Your Student Loans
You may be able to refinance your student loans to get a lower interest rate, which would lower your monthly payments. However, be careful about refinancing Federal student loans, because as of now, you can only refinance through private lenders. This means your otherwise Federal student loans will become private, and you will lose forgiveness options and income repayment plan options by refinancing. If you are fairly certain that you’ll be able to pay your debt if you refinance, then this may be the option for you. Just be sure you’ve thought it through!
Don’t Let Your Loans Go to
Along with scholarships, fellowships, and grants, student loans are an important method of financing post-secondary education. With tuition costs rising, more students are borrowing to pay for college education today. However, not all students realize the burden of paying back their student loans. Many are defaulting.
In USA, student loan has become the second largest source of consumer debt, only after home mortgages. A research has revealed that, more than 7,500 borrowers having a debt of $164 million have applied for debt relief under a 1994 regulation. Finally, in June 2015, the US department of education promised to forgive the debts of the bankrupt students. There are generally a few primary programs, which might actually help you to get the Federal Student Loan Forgiveness.
Lucy , Lazarony. "Paying Off Your Student Loans with Forgiveness Programs." Credit.com. Credit.com , 13 Oct 2013. Web. 22 Apr 2014.
Doyle states in his article, “As of this writing, the total amount of outstanding student loan debt has been estimated at $960 billion (Kantrowitz, 2011).” Right now, there is only 7.4 billion people on earth, but not all of those people are in debt. So, massive debt with not near enough people to even cover the debt on the whole planet put this issue into perspective. Many people talk about applying for scholarships but scholarships can only cover so much of the price, and even then, the scholarships aren’t guaranteed. Now what about paying off the loans? How will that take? “First, incomes vary tremendously across different choices of majors and professions. Second, the incomes of individuals starting out in the labor market vary according to the state of the labor market at that time.” There are many different factors that go into this process. As stated in the previous paragraph, those who do both work and school are more apt to pay their debt off at a quicker pace. But, how much they make and how often they paid is another contributing factor. If the average college student is making minimum wage (part time) and is going to an in
(Ramsey 108). Making sacrifices with your money now, will make your hole of debt that much less. The less you have to worry about debt, is the more you can focus on you. Around 30% of student loan borrowers have dropped out of college and have to continue paying the debt with just a high school graduate salary.
Student loan debt makes up a large portion of the debt in this country today. Many defaulted loans are the demise of high interest rates, poor resources to students in educating them on other avenues and corruption in the governmental departments that oversee education and financing. There are many contributing factors that lead to the inability to pay off student loans which need government reform to protect the borrower’s best interests.
As students near the end of the academic year, they are constantly faced with some of the same choices the generations before them have been presented with too. The biggest question a lot of seniors in high school have to answer is if they are going to be attending college or not. There are a lot of legitimate reasons as to why a person might not attend a college, but I personally feel like everybody should have a higher education if they have the opportunity to do so. One of the biggest reasons that people do not have the opportunity to pursue higher levels of school is the fact that they do not have enough money to pay for it. With the staggering amount of debt, the majority of students incur in college, it is becoming a
Finally, so far the best ways to be able to pay off student loans are to either save up money up to the age of college preparation, find a degree that can pay well, and to find a college that can give you the best
This debt accounts for six percent of our nation’s $16.7 trillion debt (Denhart). Since student loan debt is such a big part of the national debt, if the student defaults on their loan then the United States taxpayer has to carry the burden of the loan (Denhart). Students who are graduating with debt do have a couple of different options that they can choose from. There is a six-month grace period after graduation to allow the student time to find a job and programs to try to help eliminate debt. “The Consumer Financial Protection Bureau estimates that one-fourth of the American workforce may be eligible for repayment or loan forgiveness programs” (Atteberry, N.P.).
As of 2016, American students have accrued a massive 1.3 trillion in student loan debt. Just 10 years ago, the nation’s balance was only $447 billion (Clements). This ever-present cumulative burden has caused many post graduate Americans to delay important life events such as marriage, homeownership and children because of this substantial encumbrance (Clements). The debt will only continue to grow with neglect, so the most effective action to take would be eliminating the cost altogether.
College debt is a universally known issue that remains one of society’s largest burdens today. Over the past ten years, high school students and graduates realized that they must seek a higher education in order to find a job that keeps food on the table. Attending a college or university is practically required in order to succeed in life today. Millions of people seek a higher education to pursue a degree, graduate, and acquire a quality job that supports their everyday needs. It often means a lot of money to pursue and earn a degree nowadays. What they don’t realize, is that paying their tuition and housing deposits is essentially signing a contract, costing them thousands of dollars in the near future and leading them down the dark path
(Kantrowitz, Mark) In 2012 students who lived in Texas and attended TJC owed $11,308 in tuition in fees for student loans. (US News Education) That price has risen and in four short years it is now $16,307. That is five thousand dollars more than previously. Five thousand in only four years in mind boggling. If a student wanted to pay off that amount in ten years, it would be $167.36 a month, versus in 2012 it would have been $116.05. Many students and their families live paycheck to paycheck, and they do not have that money to spare each month. The increase in price will hurt more than it would help.
As Graduation comes near we all like to believe that our careers begin debt free behind that glass door, and we turn the knob and all our hard work will have paid off. When in fact, the glass door shatter and the student faced with the reality of paying back student loans. There is little dispute today that the number of students who have student loan debt has increased.
The first solution to limit debt for a student is working and saving while attending school. Another solution includes attending a community college instead of,or before, a university. As a final solution, applying for scholarships can limit or diminish the amount of money needed to borrow, therefore, decreasing future debt. To start, one considerable solution to help with student debt is working and saving.
Many people believe those loans can be paid off in a matter of a couple years. However, this idea is misguided as many people do not pay their student loans off until their early forties. Keywords: Education, tuition, budget, degree, necessary How Student Loans Effect the Economy When students are finishing off their senior year in high school, they begin applying to college. Many people are blinded by how much after high school education actually cost.