Reflections on Student Debt
Graduates typically earn more over their lifetime than those who did not pursue higher education. But how to pay for that university degree or specialized education? By the time some students complete their university studies these days, they graduate with a student debt that is counted in six figures. Ouch! So naturally, students will look for free money if they can find it. If you are a student, what are your options? PAYING FOR HIGHER EDUCATION: OPTIONS Scholarships: A minority of students can successfully compete for financial scholarships. If that's not you, read on... Grants and gifts: Depending on the career you are preparing for, non-repayable grants may be available from your industry. Also, governments often have some funds earmarked for student grants. In the USA, the Pell Grant is an example. Part-time employment during your education years: While it may not cover all your costs, having a job during school will certainly help. And while you are working, you will have less time to be tempted to spend money. Social expenses can eat a big hole in the student budget. Student loans: Low interest student loans are another popular alternative. The resulting student debt must be serviced in the early years after you graduate. In the USA, Stafford Loans (Guaranteed Student Loans) are available with low interest rates. In the case of subsidized loans to needy students, the government pays the interest while you're in college. Direct Student Loans: These are low-interest loans made by the education institution itself, using funding sources available to the school. Government cost-of-living funding: Depending on the educational assistance policies of the country you live in and your own economic circumstances, you may qualify for government money. In Australia, the Austudy program helps tens of thousands of students complete their tertiary studies. Repayment starts after graduation but only when the graduate's income passes an inflation-adjusted threshold. In the UK, the repayment of student loans starts when the graduate's income exceeds £10,000 per year. STUDENT DEBT: REPAYMENT REALITIES You must start to service your student debt shortly after you enter the workforce which is typically the lowest paid years of your careers. It is also the time when you will also be handling other expenses such as establishing a family. If you cannot service your student loan after completing your education, it is important not to default on your payments as that triggers a set of punitive responses from the relevant government departments. In the USA, your tax refund is sent to the Education Department and your wages are garnished. Also, your credit rating is damaged and that penalty travels with you for some years. Plus, they add substantial collection fees to your already-high student debt. In a word, don't. Don't default, that is. Instead, talk to an Ombudsman at the Department of Education or to an appropriate authority in your country. A good time to think carefully about the practicalities of actually repaying your student loan is when you are applying for it in the first place. student.debt-go.com is a significant source of further information about a range of debt issues, including student debt. Check it out today.
Average Student Loan Debt
The average student loan debt depends on the institution and the course which the student is studying. The National Post-Secondary Student Aid Study has calculated the following statistics for average student loans for the academic year 2003-2004. Twenty-one percent of the students attending certificate courses at community colleges had borrowed loans at a median average of $5,307; while 78% of those attending certificate courses at private schools borrowed at a median average of $5,705. These figures show that the number of student borrowers at the private schools was marginally higher than the number at community schools. Among the associate degree students at community colleges, 28% had borrowed a median average of $5,879. The statistic among bachelor’s degree students was still higher. For the four-year bachelor’s degree course at public colleges, 58% of students borrowed at a median average of $14,671; while at private colleges, 69% borrowed at $17,125. For the four-year master’s course at public colleges, 48% of the students were borrowers with a median average of $26,119; while at private colleges 73% students were borrowers with a median average of $29,000. For specialized courses like doctorates and professional courses, the student debt was exceedingly high. 48% of the students undergoing doctorate courses at various institutions borrowed an average of $44,743 last year. 89% of the students opting for four-year professional courses at public colleges borrowed an average of $63,500 and 81% of the professional courses students at private colleges borrowed an average of $71,317. These figures show that as the academic level goes higher, the average student loan debt also goes higher. The expense of professional courses such as medicine and law are very high and therefore, students also borrow more. Almost all students appearing for professional courses fund their education via some or the other student loan facilities. Another observable factor is that students studying in aided public schools and colleges borrow less and the number of borrowers is also less than at private schools. Student Loan Debt provides detailed information about student loan debt, student loan debt consolidation and more. Student Loan Debt is affiliated with Debt Consolidation Loan Online.
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A student loan debt consolidation loan allows you to combine your federal student loans into a
single loan with one monthly payment. The repayments of a student loan debt consolidation loan
can be significantly lower than the payment required under the standard 10-year repayment option.
For American students, the U.S. Government came up with a plan that can help a student manage
their student loan debt. The plan they came up with is called a Federal Direct Consolidation
Loan. It doesn't matter if you're a recent graduate student, well into your career already,
still at school, or in your grace period for repayment of a student loan. For any of those
student categories, a Federal debt consolidation loan may be applied for.
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