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Did you know that the average student graduates with $21,000 in student loan debt? It's true, so if you find yourself in this situation, don't worry, you aren't alone. For some reason, student debt upon graduation is spun as a bad thing by the media. It isn't. Think about it: No one ever thinks twice about a new graduate's $21,000 car loan, but if it's a student loan? Oh, the horror! One thing to keep in mind is that student loan debt is no different than any other loan: If you borrow it, you have to pay it back. That's why it is important that you do not borrow more than you can pay back upon graduation. It's not graduating with debt that is the problem, it's graduating with TOO much debt in relation to the career you've chosen. It's one thing to borrow $100,000 to become a doctor, but make no sense doing so to become a teacher, or a social worker, or some other low paying career. Make sure you take this into consideration BEFORE taking on more debt than you can repay. Sometimes things happen, even if you've borrowed responsibly. Accidents happen, and jobs are lost, both of which can affect your ability to repay your student loan debt on time. Luckily there are programs in place to help people who find themselves in this situation. One such option is to apply for an economic hardship deferment. This suspends, or reduces your payment until you get back on your feet. However, the interest will continue to grow on loans that are not federally subsidized. Another option is to extend your repayment plan timeframe. If your current plan calls for a 10 year repayment period, extending it to 20 years will lower your monthly cost by 34 percent. On the downside, doing so will also increase the overall cost of your loan by almost doubling the amount of interest you'll pay over the life of the loan.
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Loan Debt: Student
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