Surviving Your College Loan Debt

poor student — Fri, 23 Oct 2009 19:10:56 +0000

Did you know that the average costs of higher education increase at a rate that is double that of inflation? And tuition is only part of the equation when trying to come up with the financial resources to make it through college. Books and living expenses can add up quickly, as well. With the costs associated with getting a diploma skyrocketing, it’s no wonder that the average college student graduates with at least $10,000 in college loan debt.
College loan debt can be overwhelming, especially for new graduates who are faced with a lack of jobs and living expenses, as well as car payments and credit card debt. But, it is possible to get out from under your college loan debt. Remember, as overwhelming as they seem right now, one day you will be a little more financially secure and you can start really focusing on paying down your college loan debt.
In the meantime, you can consider options like deferment, grace periods, and forbearances if your loans are federally backed, and you could look into consolidation of your college loan debt if they are not federal loans. Both can help reduce your payments by hundreds of dollars a month, although you will end up paying back more in interest.
Consolidating your college loan debt means that a lending company will pay off your loans for you, and you will then make payments to that company to pay off the amount of the loan. They are able to lower the monthly payments because they stretch the period of the loan by several years, sometimes up to 30 years. If you consider consolidating your college loan debt, make sure you choose a company that will allow you to pay off the loan early with no penalties.
The last thing you want to do is default on your college loan debt. Bankruptcy is rarely granted for student loans, and they will garnish your wages. Talk with your lenders, research your options, and relax. You can survive your college loan debt.

Examining Average Student Loan Debt In The U.S.

poor student — Wed, 21 Oct 2009 13:57:59 +0000

According to the National Postsecondary Student Aid Study, sponsored by US Department of Education’s National Center for Education Statistics, average student loan debt has increased 5.6% ($1,139) every year since 2003-2004. In 2007-2008, two out of every three undergraduates completed their studies with thousands of dollars in loan debt. The average college student graduated owing $23,186 in student loans. If we include PLUS loans, 66% of college students graduated with debt. In this case, the average student loan debt was $27,803. Every year, 13.5% of parents borrow PLUS loans to finance their children’s college education. When their children graduate, these parents owe $23,298 in PLUS loans. With today’s ever increasing costs of higher education, today both parents and children are graduating with ever increasing college loan debt.
In 2007-2008, the National Postsecondary Student Aid Study performed a survey of 128,000 students including undergraduate, graduate, and professional students. In 2007-2008, students completed their Bachelor’s degrees with an average student loan debt of $19,999. One in every four owed $30,526 and one in every ten had borrowed $44,668 or more.
Graduate and professional students owe even more money. A graduate degree can cost an additional $30,000 to $120,000. One in every four graduate students borrows upwards of $42,898 for a Master’s degree, and that figure jumps to $75,712 for a doctorate degree. Professional students borrow even more. They graduate owing an additional $118,500 for a professional degree. As the level of education increases, so does the average student loan debt.
Although graduate degrees result in increased debt, it is important to note that students who complete bachelor’s degrees with no debt are 1.7 times more inclined to pursue graduate or professional studies. In other words, students who finish bachelor’s degrees with high debt loads are less likely to pursue graduate or professional education that might result in higher earning power. However, the fact that even graduate and professional students graduate with high debt levels shows that loans are virtually unavoidable.
Whether you are above or below the average student loan debt level, if you are struggling to pay back your loans there is help available to you. Speak with a loan representative about your options today.

Poor Credit Student Loans » Average College Student Loan Debt

Surviving Your College Loan Debt

Examining Average Student Loan Debt In The U.S.