Student Loan Debt

On average, most people graduate college with a student loan debt of over $20,000. The source of this debt is not only for tuition fees, but also credit card payments as well. It is likely that after graduating from college, a person would spend a good portion of their life paying off that debt. The average cost of attending college and university has not only increased, but so has living costs. With living being so costly, it is natural to seek to do higher paying jobs. However, just paying for tuition can make a person deep in debt. There are two types of student loans. One is federal loans and the other is private loans. Federal loans are based on financial needs. The U.S. Department of Education offers these loans and it pays for expenses
As a result, the number of students needing financial aid also increased. In 2011. Most students left college with around $25,000 in debt. It has been found that first generation college students are more likely to have higher student debt because of their families’ not able to give much financial support. In a survey of 506 college students, 77.8% of them owe student loans and 37% of them owe $20,000 or more in student loans. It has been found that 50% of all bachelor’s degree recipients have at least $11,000 of debt. The other 50% of the recipients have around $20,000 of debt. Also, students who are first generation college students, financially independent, or have a low Grade Point Average, or GPA, are more likely to have higher student loan
The best way is to start planning ahead in high school, starting with freshman year. Talk to an advisor about AP and honor courses, get involved in the community and school. Join clubs and participate in activities. Another way to start preparing is to look into career paths and learn about budgeting and finances. Junior Achievement, or JA has a website that helps teens find a career path that they like, inform them about saving and budgeting, and how to start a business. In sophomore year, students can start attending college and career events, research about funding for college, take the PSAT and prepare for it again the following year along with SAT and ACT, and continue to look out for career and college options. There are scholarships that are also offered to sophomores, so it is best to also look out for them. Take AP and honors classes or duel enrollment if you believe you can handle it. Juniors will take the PSAT to try to qualify for National Merit scholarships and programs. Juniors can also start taking the SAT and ACT. They can contact colleges and universities to request information or applications, check the deadlines for their target schools, and attend college-prep classes. In the spring, they can start visiting colleges and universities. They can narrow down their options and decide on their career