?What's Worse than Student Loan Debt?
Although the media and financial institutions have been reporting about how crippling student loan debt is to modern American graduates, there are worse things in life. Because of the economy, everything costs more, especially a college education. Don't get pressured into taking advice from questionable sources about paying off your student loan debt. Unlike other things in life, there is always hope for paying off your student loan debt.
Interest Rates and Averages
The average student loan debt for individuals who had graduated from college after having studied for four years was $20,000 in 2006. This can be a rather intimidating statistic, and some students feel that having to start to pay off such debt just six months after having graduated from college will be too much to handle.
The sad reality of the matter is that anyone who has been born into a modern American or European household has been doomed since the day they were born to pay immense amounts of taxes to the government of the country where they live. In fact, you should feel better when you think about how insignificant student loan debt is when compared to the debt people get into when they purchase a home.
Financial institutions will always try to charge you an interest rate on any loan as high as they possibly can, especially at first. This is because the bank earns money by means of the interest they charge. As times go by, however, the bank will become more willing to lower your interest rate.
Your Situation Is Not Hopeless
There are always things you can do to negotiate a lower interest rate. This is even better when you have had a job for a while, as you can prove that you are a low-risk borrower. But you can always contact a debt management specialist at any point of your life. These are often non-profit organizations that will offer you money management classes as well as a consolidation loan.
It might not seem like it at the moment, but a $20,000 student loan debt is not all that horrible. Within five to seven years of paying reasonably sized monthly payments, you should be able to finish paying it off completely. Making more than your required monthly payment might even award you a refund. Remember, student loans are much easier to pay off than home loans.
Interest Rates and Averages
The average student loan debt for individuals who had graduated from college after having studied for four years was $20,000 in 2006. This can be a rather intimidating statistic, and some students feel that having to start to pay off such debt just six months after having graduated from college will be too much to handle.
The sad reality of the matter is that anyone who has been born into a modern American or European household has been doomed since the day they were born to pay immense amounts of taxes to the government of the country where they live. In fact, you should feel better when you think about how insignificant student loan debt is when compared to the debt people get into when they purchase a home.
Financial institutions will always try to charge you an interest rate on any loan as high as they possibly can, especially at first. This is because the bank earns money by means of the interest they charge. As times go by, however, the bank will become more willing to lower your interest rate.
Your Situation Is Not Hopeless
There are always things you can do to negotiate a lower interest rate. This is even better when you have had a job for a while, as you can prove that you are a low-risk borrower. But you can always contact a debt management specialist at any point of your life. These are often non-profit organizations that will offer you money management classes as well as a consolidation loan.
It might not seem like it at the moment, but a $20,000 student loan debt is not all that horrible. Within five to seven years of paying reasonably sized monthly payments, you should be able to finish paying it off completely. Making more than your required monthly payment might even award you a refund. Remember, student loans are much easier to pay off than home loans.
About the Author:
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posted by Debt Consolidation Loan at
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