According to studentloanhero.com, the average debt for a 2016 college graduate is $37,000. The number can be higher if it is a private or for-profit school along with taking a fifth or sixth year. Today, 1.45 trillion dollars in loans are yet to be paid back by 44 million borrowers, which is $620 billion higher than the national credit card debt.
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Even if you dropout and do not graduate, you still have loans to pay off. Sometimes your loans can be discharged, cancelled, or forgiven. Some of these clauses can be if the university closed while you were a student, the death of the student or parent who financially supports them, a false eligibility certification, or if you choose to teach.
The Federal Student Aid office states that if you "teach full-time for five complete and consecutive academic years in certain elementary and secondary schools and educational service agencies that serve low-income families, and meet other qualifications, you may be eligible for forgiveness of up to a combined total of $17,500 on your unsubsidized and subsidized loans".
Going back to the "ramen every night" question, the typical payment plan states that you can pay your loans off in ten years. Some plans can be customized by you to take less time or more time. Your payment is determined by your monthly income and expenses.
So, do not fear. It is not as severe as some recent graduates and memes can convince. Your income, tax refunds, and possible reimbursements will be able to help you pay your loans.
- Joe
I just completely understand what you're saying. Although, there are some parts that were confusing to me. For one, it says that Americans owe 1.45 billion, which is 620 billion more than the U.S. credit card debt. I think this may just be a typo, though. Also, could you explain how someone would be able to pay off their student loans within 10 years?
ReplyDeleteThe 1.45 was actually supposed to be trillion, so thank you for noticing that. When you graduate, you construct your own "plan" on paying your loans off. If you choose to do the standard FAFSA payment plan, the payment rate will have it be paid off in full in ten years.
DeleteThe average medical student graduates with over $150,000 in debt, for these students, or other students who graduate with more that the average debt, If they don't have a paying job right out of college could they still pay off debt in 10 years?
ReplyDeleteWhen you graduate, you actually have a six month grace period, so you wouldn't start paying until then. So if you don't get hired a week after you walk, don't sweat it! The average plan will have you pay it off in ten years, but you can adjust it to where you choose the payment amount/payoff time.
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