How to Control College Debt
Debt can make your life a struggle. Not only do you owe the amount you borrowed, but the interest on the loan can be crippling. For many folks, their student loans are making their lives a misery. Almost 12 and a half million people in America have borrowed between $10,000 and $25,000 for their college education.
Why would you borrow large amounts of money and get into debt before you even start your working life? The answer is simple:.
According to the Georgetown Center on Education and the Workforce, 65 percent of all the jobs available in America will require education beyond high school in the next two years. So, to get a good job in the future, you'll have to get educated beyond high school, and that probably means getting into debt. If you do take out a student loan, do so with a sound plan in mind. It's important to take control of your debt, and take advantage of all the options available that can make your loan more manageable.
Getting as much information from reputable sources is a must. Federal Student Aid, an office of the U.S. Department of Education, provides a repayment calculator and a lot of information that is available to anyone who is thinking about borrowing money to go to college.
It is possible to choose an income-driven repayment plan. This bases your monthly payment on the amount you earn, rather than how much you borrowed. It could be a far easier way to get through your life and get a foothold in the working world without putting your survival at risk.
If you have multiple loans there is a possibility of consolidating your federal student loans so that you have one monthly payment through a Direct Consolidation loan. There are also options to refinance either federal or private student loans through a private lender.
Getting a college degree is a sound goal for your future, as it seems like more and more people will be borrowing to go to college. Making sure you have your loans under control moving forward is vital to your future success and financial stability.
IMPORTANT DISCLOSURES
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.
Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC