There are 43 million people in the United States who owe federal student loan debt. Student loan debt is more often discussed as an issue that only affects millennials, but it is an issue that cuts across all age groups. Federal statistics show that about 7.8 million people age 50 and older owe a combined $291.9 billion in student loans. People from age 35 to 49 owe $548.4 billion. That group includes more than 14 million people. The Average student loan debt in the United State is extremely high, making it impossible not to crumble under the heavy weight of it.
What Is Student Loan Debt?
Student loan debt is money owed on a loan that was taken out to pay the expenses of school tuition. These loans are used to cover the portion of tuition that has not otherwise been paid with grants, assets, scholarships, or the help from a parent or guardian. The tricky thing with repaying student loans is the system expects students to get jobs right after college. But there are no guarantees of immediate employment after graduation. This unemployment rate leads to students drowning in the average student loan debt after graduation.
Tips To Deal With The Pressure Of Student Debt
Student loan debt statistics say that 61 percent of more than 1,000 student loan borrowers fear student loan debt and their worries are spiraling out of control. More than 70 percent that took part in the survey said they suffer from headaches due to the stress. Here are some tips to not fall into debt and depression:
Choose the Right Repayment Plan
Federal student loan programs offer a repayment plan that automatically enrolls all users in a standard 10-year plan, with your first payments due six months after you graduate. The government also offers six other repayment options that could be more suitable for your situation.
Put Your Payments on Automatic
Majority of lenders either cut rates or offer some kind of bonus if you set your payments to automatic. If you pay your student loan payments automatically on your repayment option, some lenders will reduce interest rates by 0.25 or 0.50 percent as an incentive.
Reduce Your Rate
If you have a steady career and your monthly paychecks total $1,000 or more than your total monthly debt, there’s a high chance you can refinance a high-interest student loan into a lower rate. This reduction will reduce your monthly costs.
Who Can Help With Paying Off Your Student Debt
Learn how to pay off your debt faster. Our repayment experts are online to answer your questions. Connect with a live person for reliable information and debt reduction advice. Get in touch with us now.