The Reality of Student Loans


There is now more student debt in America then there ever has been before. The cost of higher education is continuously inflating, with a rate of doubling every fourteen years. Current students are taking out more than twice what previous generations have.

Millennials graduate with an average of $30,000 in debt. As young uninformed student borrowers, we can be pretty short sighted. We take out the maximum amount to help with all new expenses attending college. When we graduate with such a large debt it will prevent us of meeting other milestones like buying a house, having a family, and retirement. So what can we do as individuals with this national crisis?

First we need to educate ourselves to make the wisest decisions.  Borrowers and their parents need to be informed so they can find the smartest options for financial freedom. We should take advantage of outside assistance like from federal programs, employers and scholarships. Also to be aware and proactive of it always, not to ignore the issue so that is snowballs.

Unfortunately students entering college are not adequately informed about the loans they take out. In high school we are taught to pursue a higher education, but they do not prepare us how to pursue that. Loan servicers do not inform young adults, in lames terms what they are signing up for. After graduating many loan servicers do not make the borrowers best interest their priority. Instead they will have borrowers forbear their loans to try to collect even more interest.

One out of four student default in their loans. After defaulting they can come after your wages, any property in your name, take it out of your social security and even go into your bank account to get their money back. To prevent dire consequences we need to know our options and how to prevent these horrible things from happening. The information is out there, we just have to do the work to inform ourselves. It can be easy to take out loans and worry about it later but that is self-sabotage. Being informed helps make smart decisions and prepares you for life after graduating.

Fortunately there are some options that can help. Our government attempts to assist with loans through the public service loan forgiveness program. This is a federal program that will forgive your student loans after ten years of public service. This includes public services such as police, education careers such as teachers, and healthcare professionals such as nurses. Before assuming this will be a solve-all option borrowers have to make sure they will be eligible and what all need to happen during the ten years for the loans to be forgiven. Other programs similar to the public service student loan forgiveness program are available. Student Loan Hero has a list of loan forgiveness programs .

Employers are also taking responsibility on helping their employees through tuition reimbursement. Even many entry level jobs provide educational assistance such as Target, Starbucks, McDonald’s, Verizon and many more. Every employer places stipulations on how, how much and when you can receive the assistance. The job you currently work at may provide tuition assistance. If not maybe employment at a different place that offers tuition assistance would be a smart decision. If they pay is not as much, think about the amount of tuition reimbursement you could receive. You would be that much less in debt.

Another way to help with college inflation prices that is most advertised in schools is scholarships. Whatever your background is, experiences, grades, or demographic there is always a chance to receive a scholarship. Aside from school, scholarships are offered through multiple facets. A couple of the largest and most popular websites to find scholarships are the College Board and Fast Web. Beware of scams while you search for scholarships. If the information on a scholarship is not on one of these sites be very cautious. Do not give out any personal information and be wary of scholarships that make grand promises that sound too good to be true. Whether it is a couple thousand or a couple hundred every little bit help to tackle your student loans, your future self will thank you.

Although this student loans crisis monster can be large and daunting ignoring it will only make it bigger and can take more from you in the end. It is up to us to set ourselves up for a future free of student loan debt. Assistance with tuition can be found in unexpected places. After graduating borrowers want to work and continue to learn in their field. We do not want to be buried by our debt. This is a national crises but by paying attention and making good decisions we will not be a part of this catastrophe.

About Asma Aladimi

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