It's no secret that the price of a college education is on the rise, and with it, the number of loans students are taking out to afford their bills. While those loans can provide great financial assistance to students while they are in school, loans (and their interest rates) can become a huge burden after graduation. In July, the Department of Education released a report which states new estimates for total outstanding student loan debt: more than $1 trillion in 2011, composed of $864 billion in federal government loan debt and $150 billion in private student loan debt. Furthermore, 8.1 billion in private student loan is in default, suggesting that 1 in 20 students will default on their private loans.
In the long term, this debt could force students who borrowed a great deal to delay buying a house, starting a family, or accessing the money to start a small business. Federal laws also make it difficult for students with student loan debt to file for bancrupcy, though some groups are urging Congress to re-visit those laws to help adults still struggling with student loans to get a break. Studies are also finding that the recovery of the housing market is being hampered by exhorbitant student loan debt, as many who would be purchasing new homes are now financially unable to. This shows that student loan debt is harmful not only to students, but to the US economy as a whole.
The best case scenario, of course, is to get yourself out of the mess that is student loan debt as quickly and efficiently as possible. The importance of higher education is hard to dispute, but earning your degree feels even better when you have the tools to pay back the debt you owe for it.
RealSimple Magazine offers some smart and creative strategies to tackle your student loan debt and take back control over your fiances. You can check out the full article here.
Whether you are 1 or 20 years out of college, we hope these tips will help you live a financial future free of student loan debt!
~Savvy Student
In the long term, this debt could force students who borrowed a great deal to delay buying a house, starting a family, or accessing the money to start a small business. Federal laws also make it difficult for students with student loan debt to file for bancrupcy, though some groups are urging Congress to re-visit those laws to help adults still struggling with student loans to get a break. Studies are also finding that the recovery of the housing market is being hampered by exhorbitant student loan debt, as many who would be purchasing new homes are now financially unable to. This shows that student loan debt is harmful not only to students, but to the US economy as a whole.
The best case scenario, of course, is to get yourself out of the mess that is student loan debt as quickly and efficiently as possible. The importance of higher education is hard to dispute, but earning your degree feels even better when you have the tools to pay back the debt you owe for it.
RealSimple Magazine offers some smart and creative strategies to tackle your student loan debt and take back control over your fiances. You can check out the full article here.
Whether you are 1 or 20 years out of college, we hope these tips will help you live a financial future free of student loan debt!
~Savvy Student
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