Student Loan Debts; What You Need to Know

Currently, around 43 million Americans are in debt for student loans. The average American debt is approximately  $37,000. Many seniors intend on going to college immediately after graduating from high school. While this is a smart strategy, many high schoolers are unaware of how financially burdensome student loan debt can be.

As a college student, you must pay for everything, including room and board, books and supplies, food, transportation, tuition, and many other expenses. (The only way to decrease this financial burden is through scholarships or grants.) When you can’t pay for something, you go to the bank and ask for a loan. When you go to the bank and ask for a loan, they might offer you depending on their criteria, but they will expect you to pay it back. If you are unable to repay it, they will keep track of it as it continues to accumulate interest and you will eventually be in greater debt than you started. This does not include the negative impact on your credit score. The greater the debt, the more difficult the financial situation, and the more difficult the financial situation, the more difficult it will be to pay for basic necessities like rent or utilities or gas for your car. This situation can leave a debtor feeling stressed, despairing, or frustrated. 

 What impact will student loan debt have on you when you go to college?

As I mentioned earlier, being in debt can have an impact on your credit score. The lower your credit score, the more difficult it will be to acquire a car, a house, or even a phone. Student loan debt might also make it difficult to find work. Some employers require a credit check, and if your credit score is low, they may refuse to hire you because they believe you will not complete your tasks or are more likely to commit fraud or theft.  Having overwhelming student loan debt can also affect your mental health. A survey from ELVTR says “54 percent of student borrowers experience mental health challenges due to the amount of debt owed. Fifty-six percent of those whose mental health is affected by student loans said they’ve experienced anxiety, while about a third suffered depression.” 

Although student loan debt can be financially and emotionally exhausting, there are steps you can take to avoid becoming buried in debt. One of them is starting with community college. According to Ms. Cole, “if I could do anything differently, it would have been going to a community college, it would have saved me time and money.”  Going to a community college and then transferring to a university Students can complete the “core” courses necessary for transferring to a four-year university at community colleges. After earning an associate’s degree, community college students can apply to transfer as a transfer student to a four-year university. If they fulfill the transfer requirements of that university, they may be admitted there and begin the process of earning a bachelor’s degree. Additionally, it is wise to confirm that all of your classes have the approval of the university you are attending to wasting time and money by having to retake them. Applying for aid is another choice. You can apply for the FASFA program and be eligible for financial aid. Resident Assistants are either undergrads or graduate students who reside in the dorms and work to provide a safe environment for students living in dorms or housing. You may be eligible for free housing and meals in exchange for being an R.A. Being an R.A. looks nice on a résumé.

Although getting through college debt-free may appear to be unavoidable, I believe it is crucial to be aware of everything you may do to avoid it. While attending college is a fantastic choice, there are other possibilities available to you. I believe that making high school kids aware of the seriousness of student loan debt is also beneficial so that students can be informed of and research what they can do to prevent getting into a lot of debt.