The student loan debt crisis in America is very real — with more than 44 million Americans owing a total of more than $1.5 trillion, an average debt that continues to grow and more loans defaulting every day. According to the latest data available, the average student in the class of 2016 has more than $37,000 in student loan debt.
Sure, there are a lot of factors that students cannot control — like interest rates and cost of tuition — but one of the biggest problems surrounding student loan debt is the lack of understanding of how it even works. In fact, according to a recent survey, more than half borrowers didn’t know that interest accrues on their federal unsubsidized loans while they’re in school — and 10% falsely believed that you don’t have to repay your loans if you don’t get a job after college.
The point here is not that you’re totally screwed or that you should never consider borrowing money for school. Understanding the statistics, and how student loan borrowing and repayment programs work in general, will allow you to make informed decisions and avoid causing unnecessary damage to your financial life — both now and down the road.
Whether you currently have student loan debt or are considering borrowing money for school, it’s crucial that you understand all of the options available to you in order to choose a strategy that’s best for you and your situation.
Borrowing money to get a higher education is an investment in your future — so you can [theoretically] get a better, higher-paying job down the road. You just have to do it in a smart way. And I’m here to give you the information and resources you need to make those decisions that will set you up for success.