More and more young people today are finding themselves knee deep in student loan debt. The bad news is, if handled incorrectly, the consequences can be long term and devastating for an individual’s credit. The good news, however, is that, if taken care of properly, these loans can help build, or even boost, your credit.
Young people in average to entry-level salary jobs must seek out help when in crisis, before debt piles too high for rectification. Although it may seem contradictory, now some colleges are looking to cut costs for students in above and beyond the usual financial aid recommended. It’s a well-known conundrum that for the first time in American history, the student debt is at a higher rate than credit card debt, which is a staggering and unsettling fact.
Student debt around the country is at one trillion dollars and is still on the rise. One has to consider the Student Loan Forgiveness Act that President Obama put into effect fairly recently. One option is consolidating into a Federal Consolidation Loan towards Public Service Loan Forgiveness. This is one way to be eligible for loan forgiveness. Be aware though, consolidation could potentially change any current headway in your loan payment status.
The main worry for a good portion of the population is that many potential students are opting out of higher education altogether because of the cost of most colleges and universities in the United States today. Young adults find themselves in the position of choosing decades of debt or a lower overall income without a degree. Not to say that there is any shame in an occupation that does not require a degree, but there is most definitely something to be said for backing up your street smarts with a little scholarly know how.
Capitalism is dependent on a stable middle class; however, it’s difficult to secure such stability with a society that is constantly bludgeoned with loads of debt. Chances are that the focus may need to be shifted towards another area of concern. The problem on a greater scale seems to be that the U.S. economy is tanking and has been for some time now. The question at hand is what our country’s leaders can do about the mounting problem. At this point, there has been little in the way of concrete answers and speculation seems to be the only answers available.
Politics aside, it’s a frustrating but true statement that many scholarships go untapped each year because students don’t know that they exist. Many young adults rely on financial aid and loans alone, barely scraping by because they are unaware that any scholarships apply to them personally, making it crucial that students “do their homework” when it comes to applying for scholarships.
There are countless no-strings-attached funds out there in the form of scholarships that are waiting to be claimed. Students must seek out the scholarships that are often hidden under the surface layer of research, available only to those who are truly dedicated to funding their college education.
This article was written by Frederic Hobbs, a small business owner who loves blogging, the Boston Red Sox, and his community. Frederic Hobbs is a strong advocate of banking with a local Massachusetts Bank as opposed to the big national banks receiving big bailouts.