The Debt Pool: Avoiding Student Loan Debt
The Debt Pool: Avoiding Student Loan Debt
Students are drowning in debt.
How bad is it?
Student loan totals top $1.757 trillion.
17.9 million: number of students attending college each year (in the U.S.)
43.8 million borrowers have federal student loan debt
That’s more than the entire population of Canada, Poland, North Korea, Australia, and more than 200 other countries. And 4X greater than the population of Sweden.
25.6 million or 58.9% of borrowers have loans in forbearance.
Avoid Debt Altogether
1.Savings
Summer jobs
Birthday money, gifts
Parents paying for it
2.Earn Money while In College
Grants and scholarships
Work grants
Be freelance creative: write, take stock photos
Start a business, i.e. website developer
Tutor others
Crowd fund your education
Buy a sheriff sale house, renovate, flip
Go to night school, work during day
Upstart.com Sell some of your future earnings
If all else fails and you are already in debt…..
Tips for keeping debt under control
1. Keep track: Of balance and repayment status
2. Saving Grace Period: how long you can wait before first payment
3. Stay in Touch: Ignoring lender bills lead to default
4. Pick the Right Repayment Option
5. Don’t Panic: You can temporarily postpone your federal loan payments
6. Stay out of Trouble! Not paying can lead to delinquency
7. Prepay If You Can
8. Pay Off Most Expensive Loans First
9. To Consolidate or Not to Consolidate Your Loans: Consider your options
10. Deduct your student loan interest at tax time
11. Loan Forgiveness: Sometimes, it is an option
Sources:
https://ticas.org/content/posd/top-10-student-loan-tips-recent-graduates
https://blogs.wsj.com/numbers/congatulations-to-class-of-2014-the-most-indebted-ever-1368/
https://ticas.org/sites/default/files/pub_files/Debt_Facts_and_Sources.pdf
https://www.marketwatch.com/story/where-the-presidential-candidates-stand-on-student-debt-2015-07-28
https://www.schools.com/articles/how-to-avoid-student-loan-default