COLLEGE KIDS! Prepare yourself for an increase in interest for student loans. Reports are coming in that the federal student loan interest rate is soon going to DOUBLE! From as much as 3.4 to 6.8 percent. It may surprise you to know that student loan debt has now surpassed credit card debt in the US by 150 billion dollars. How are parents and their graduates planning on paying for the mountain of debt that will be placed on their shoulders?  One way that people are ridding themselves of student loans is by registering for loan forgiveness programs. Here, debtors can sign up for programs willing to work with you by offering volunteer services to help pay off your debt. Americorps is one of these programs, I know many law schools offer this type of service as well. 
     Another way to lower student debt is to apply, apply, apply for scholorships while your still in college. Scholorships are practically free money that people are handing out. With the help of a 1-2 page essay you can be one step closer to reducing student fees. 
     I hate to admit that I am a statistic here because I have place my entire college tuition on student loans and a few grants. I don't even want to think about what I will have to do within the next few years to start paying back my student loans. Hopefully, I will find a decent career and have no trouble paying my monthly student loan bills, however, this is not the case for everyone. As of 2012, many students will have a $20,000+ loan to worry about. This raises a couple of other questions like: is college really worth the financial cost?, will student debt totals continue to rise?, and has college become a monetary scam? Leave a comment and let me know what you think!
      I'm not entirely sure how the government expects students to pay this massive burden that is billed to them after graduation. Many people are placed on a payment plan for decades. I think that's horrible and certainly do not want to be one of those people. With colleges cost of attendance on the rise every year, many topping $30,000 students are regretting their college decisions. A way to reduce cost of student loans is to take classes at a community college during the first two years of your undergrad and get rid of those basic math and sciences. Then you can transfer to the college or university of your choice. Another way is to get grant money and financial aid. The earlier you apply for financial aid the more money you can receive. Now picture financial aid as a giant pot of money, those who apply early get to take the biggest handfuls out of the pot as they can and as more and more people take from the pot, the money inside decreases. Those students who apply later in the year for financial aid basically get the slim pickings that are left. So apply early and get good grades, that's the biggest tip I can offer to you.

Barack Obama Audio

 


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