Student Loans are a Big Problem for Many

Photo of author

(Newswire.net — October 8, 2016) — Student loan debt in the U.S now stands at over $1.2 trillion, if you include both federal and private student loans. When you consider that the total state government debt figure at the end of 2016 was $1.7 trillion (source http://www.usgovernmentdebt.us/) you get an idea of the comparative scale of the debt problem surrounding the cost of sending your kids to college.

On the subject of money, if you get a lawyer to work on a case for you on a contingency fee basis, you at least know that you are only going to pay some money if a claim is successful. When it comes to the fees associated with going to college, you know that there is a specific cost attached to learning, which can create a big debt problem for many of us.

Graduating with debt

It is a dilemma for many of us, that although we known that a college education doesn’t come cheap, we need to get those qualifications that will set us on the right career path and should also open the door to a better salary progression.

There are Federal student loans which can help to relieve some of the debt burden, but even if you can get the help available on that front, the amount you get doesn’t always cover the entire cost of your college education.

The end result is that many thousands of students are finding that they are graduating with tens of thousands of dollars owing, meaning that they start their adult working life already heavily in debt in some circumstances.

Private loans can actually make the position for some students even more dire, as a lot of these loans tend to have higher interest rates attached to them, plus other fees that can make them much less attractive as an option compared to a federal loan.

Although there is an element of inevitably that you will graduate with some debt, there are certainly some things that you can do to reduce or even sometimes eliminate the amount that you might otherwise owe for your college education.

Explore the possibility of a scholarship

There is always the possibility that if you are prepared to be resourceful and spend time exploring all available options, that you might qualify for a scholarship.

There are many different types of scholarships available and they might be based on your academic or athletic prowess or it might be that your background or locality might allow you make an application for a scholarship.

There are resources available on the internet that could help you to pinpoint any scholarships that you might potentially qualify for, and it is definitely worth taking a look at what is available, if it could end up saving you thousands in fees.

Demonstrating a financial need

If you are able to demonstrate that you have a financial need for assistance with your college fees and are not able to attend without getting some monetary help, it might be appropriate to apply for a college grant.

College grants are similar to scholarships and are need-based, with the financial support you receive not having to be repaid. Millions of dollars every year are awarded to students through grants, so if you think there is a chance that your financial circumstances mean you could qualify for a grant, find out more about making an application.

Choice of school makes a difference

There is quite a diverse range of fees being charged, based on which school or college you decide to apply to.

One way of ensuring that you keep your college debt down is to choose a school that is more in line with the sort of realistic budget that you are looking to work with. Take the time to do some research regarding any financial aid that each college or school offers, as you might find one that allows you to apply for in-state tuition, which could make a substantial difference to your debt level when you graduate.

Get your tuition fees reimbursed

There are a growing number of employers who operate a tuition reimbursement program, so if you have a particular company that you would like to work for or forge a career with, there is the possibility that you might be able to get some or all of your tuition fees back.

Some of the schemes are more generous than others and you might find that some don’t even impose a minimum length of service time after you graduate.

However you go about it, when you look at the scale of student debt, if you can avoid or reduce the amount of money you owe for your college education, it can only make things easier for you financially going forward.

Joseph Watkins has spent most of his career in the loans and finance sector. He is also a father of 2 teenagers and knows how difficult it can be for young families to budget for the future. Joseph enjoys sharing his ideas through blogging.