The negative effects of student loan debt on recent college graduates have been well reported on. There are things, however, which can be much worse. The current state of the American economy is driving up the price of literally everything, including a college education. Some unscrupulous people may present opportunities to you, giving advice on how to eliminate all of your debt related to student loans. Beware of such advice and remember that there are real, honest ways to get rid of your 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.
Banks and other financial places that give any kind of loan will always initially charge you the highest possible interest rate they can. It is only with the interest rate do they make any profit. However, you don't have to keep paying that high interest rate throughout the life of your student loan debts.
Your Situation Is Not Hopeless
Once you have held down a solid job for a period of time and you can prove to your lenders that you are a low-risk borrower, you will be more able to successfully negotiate a lower interest rate on your student loans. It might also be advantageous for you to contact one of the many non-profit organizations and speak to one of their debt specialists. They can help you with consolidation loans. They also offer money management classes.
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. - 16089
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.
Banks and other financial places that give any kind of loan will always initially charge you the highest possible interest rate they can. It is only with the interest rate do they make any profit. However, you don't have to keep paying that high interest rate throughout the life of your student loan debts.
Your Situation Is Not Hopeless
Once you have held down a solid job for a period of time and you can prove to your lenders that you are a low-risk borrower, you will be more able to successfully negotiate a lower interest rate on your student loans. It might also be advantageous for you to contact one of the many non-profit organizations and speak to one of their debt specialists. They can help you with consolidation loans. They also offer money management classes.
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. - 16089
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