With the nation so heavily in debt, it is not surprising that even college graduates start life with the burden of loans they have taken to cover their college expenses. It is estimated that about 50% of recent college graduates have resorted to student loans, the average amount being approximately USD 10,000. Statistics show that the average cost of college increases at twice the rate of inflation, so it can be predicted that people will borrow more money to go to college. College debt is hardly surprising, when attending the average public school costs about USD 13,000 a year, and private schools are two times more expensive. For a family with two or three kids this amount is not affordable, unless the money can be borrowed from somewhere. But after money is borrowed, it must be repaid. Luckily, besides college loans there are grants as well, and they do not have to be repaid. But grants can compensate for only a small portion of college expenses. What is worse, college loan debt affects your credit rating. If your student loan debt is more than 8% of your income, do not be surprised if you have difficulties in obtaining new loans. So, what do you do with your college loan debts? There are several possibilities start repaying them, see if you are eligible for loan forgiveness, consolidate them or refinance. These are the ways to get out of debt declaring a personal bankruptcy is not a solution because most college loans cannot be forgiven through bankruptcy. |
