As I sit here writing this article, I am filled with disappointment, I am upset, and I am flustered that I just paid a ridiculous amount of money on my monthly student loan payments. Did you know that the current student loan debt is over 1 trillion? 1 TRILLION! Can you believe it?
Who would have known that going to school to better yourself and further enrich your life could be so costly? Student loans seem to cost more than tuition itself! Let’s face it…we are the future of America so we have the power to change this. But first, we have to tackle the issue one step at a time.
Let’s first talk about the statistics of this epidemic.
- 37 million Americans have Student Loans.
- There is a 27% delinquency rate.
- Americans hold an average of $23,000 per borrower in student loan debt.
Startling isn’t it?
Here are a few tips to help you get through this rough patch! Remember, we are all in this together and will get past this. Few students can afford to pay for college without some form of education assistance.
Know what type of loans you have.
Student loans come in a variety of forms – private, Stafford, Perkins, parent plus, consolidation, and so much more. They can be subsidized, where the government pays the interest before you begin repaying your loan or unsubsidized, where you pay any interest on interest that has already accrued.
There are plenty of types of student loans that one can get based on circumstance and they all have various repayment stipulations. You can find out more information by visiting this link.
Know your repayment options.
Contact your student loan lender(s) for repayment options – deferment, forbearance, reduced payment, etc. You can usually defer your student payments for at least six months after graduation.
Make a spreadsheet.
This sheet should detail loan types, due dates, amount owed, account numbers, and other pertinent information. This will help you come up with a persistent payment schedule. It will also give you something to look forward to.
You don’t have to pay all of it at once. It’s almost impossible! Just think of it as another monthly bill.
Keep up with any new laws concerning student loan forgiveness.
Also, take a look at the current options that revolve around student loan forgiveness. You can find out more information here.
These tips should help you start tackling this loan issue. The least thing you want to do is avoid paying them. Loan debt collectors will make every effort to continuously call and harass you. Being in default may also affect your credit which may prevent you from getting auto loans, home mortgages, or make it harder to rent an apartment or get a job!
Deena is a technology savvy business professional by day, graphic designer/owner by night, and makeup enthusiast from Houston, TX. She is also a former student of Texas A&M University (Gig ‘Em Aggies…WHOOP!) where she studied and graduated with her Bachelor of Science degree in Computer Engineering. She is very excited to join the Under30CEO team as a contributor, and looks forward to sharing her experiences through various articles!
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Category: Money Basics