What You Need to Know About Student Loans
Without a well-thought-out plan for how to pay for college and a smart lending strategy, the college dream is all too often becoming the college nightmare. You are going up against higher education, the federal government, and Wall Street.
Colleges set the prices, and the Federal Government and Wall Street set the terms and conditions of your loans. If you aren’t careful, they will chew you up and spit you out.
Here are the facts from the Education Data Initiative as of May 2023:
- As of year end 2023, there is $1.78 trillion in student loan debt spread across 45.3 million borrowers.
- The total outstanding student loan debt is $1,780,000,000,000. Yes, that is $1.78 trillion.
- The average student borrows over $30,000 to pursue a bachelor’s degree.
- A total of 45.3 million borrowers have student loan debt; 92% of them have federal loan debt.
- 20 years after entering school, half of the student borrowers still owe $20,000 each on outstanding loan balances.
Don’t beat yourself up if your kids have to contribute to the cost of college with a responsible amount of debt. The reality is that 7 in 10 college graduates have student loans, and it is simply part of the process for most families. To be clear, we are not anti student loans, we are anti too much student loans.
It is critical that you have an understanding of how you will pay for all four years of undergrad, including the total amount of student loans you will have to take as well as your student loan payment upon graduation. Not all student loans are created equal, and having a smart lending strategy can save you thousands in interest and fees.
Before you or your child takes on any debt to pay for college, you should have an understanding of how these loans work, including types of loans, repayment options, interest rates, and more.
In this ebook, you will learn what you need to know about taking out student loans, including:
- Types of Federal loans and Private loans available
- Interest rates for student loans
- How much you can borrow
- Tips for repayment
- Types of Federal loans available
- Interest rates for Federal student loans
- How much you can borrow
- Tips for repayment
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