For the fresh college grad, everything looks sunshiny and abloom when it comes to what the future holds. Despite post-recession downturns like lack of real, full-time and well-paying jobs in the monthly Labor Department employment updates, enthusiasm and positivism naturally runs high in the veins of a young American finally free from campus confines and out into the real world. Just don’t mention student loan repayment, at least not while the young, enthusiastic person is busy pounding the pavements of employment avenue.
But sugar-coating the first few days out of college and immersing one’s self with finding work will soon have to give way to the fact that the graduate will need to face the ghost of college past – paying the lingering student debt.
Here are five useful and thought-provoking sites that the new graduate can browse through to help pay and bust this all-too-soon real-world challenge of college debt repayment.
While it takes a standard 10 years to pay off a student loan, you can hasten that dreary payment period so that the sooner you get over it, the better. Many young professionals confessed that paying their student loans have forced them to put off accomplishing their future plans like buying property and getting married.
Why not take a cue from Greg and Alex, which the article interviewed via student debt network so that idealistic, clueless students with I.O.U. souvenirs from student loan programs can take inspiration – and copy gameplan from. With tenacity, diligence and turning frustrations into weapons of determination, the real-life stories shared prove that one can bid student loans good riddance in a much shorter time, and for real.
Here’s another useful read on student loan repayments, this time presenting the new graduate (and the parents too) with various options on repayment options with guide questions like when and where a bigger payout is better. The article settles some persistent questions attached to this debt malady, like the maximum amount of payment that would really make a difference on the young American’s life, without resulting to premature death by hard, backbreaking work.
This is quite different from the usual student loan repayment reads where only the options are expounded, but not how to choose the best one given the student and parents’ financial situation. Should one go for income-based repayment, a graduated repayment or a standard repayment? Should you cut down the debt if you receive a windfall or money gift? Should you infuse extra like $50 or $100 a month if you can afford it? The situations and positions presented can make it easy for the Pell Grant prisoner to better approach college debt and be free the soonest.
The statistics are clear: student loan defaults increased in the first quarter of 2013, and efforts to make collections from those already out in the real world are faltering. Coupled with unsteady unemployment, this college debt crisis made for a double whammy for the young American graduate. Reality is harsh – you are young, you can set the world on fire, but you cannot burn brighter than the sun while collection agents and billing statements cloud your future and hound your post-dormitory days.
This article provides a clear glimpse of the student loan default scene in America today. While there is an internal system problem involved (transfer of collection work from servicing companies to collection agencies), the fact remains personal responsibility on the part of the borrowers is a major factor. Borrowers with default status but who made an effort to pay some periods back can be moved to check if their efforts are reflected accurately in the current period.
This article makes it pretty straightforward to those who want to have some reprieve from student loan nightmares and just start anew without excess college debt baggage: defaulting on a student loan is a bad idea with serious consequences.
Given that, it proceeds to resurrect the spirit back in the life of the young, debt-ridden American by giving little rays of sunshine: they can choose a different repayment plan and switch to income-based alternatives, plus an option on payment delays that will not put them on default status, like deferment and forbearance. The value of this site lies in its clear instructions for the young graduate whose initial compensation package may not be enough to cover the student loan.
This blog post on college tuition increase and hence, higher student loans by the dynamic economist duo of Gary Becker and Richard Posner made things clear from the start: The growth in tuition is not explained by any conspiracy theory, but mainly by increases in the cost of producing college education. With that said, Becker and Posner proceeded to explain the relationships among college tuition hikes, higher college debt and college teachers with masters and PhD degrees.
The question now moves to the practicality and value of investing in education, or simply, signing up for huge student loans. Taking the words of two professionals for it, the answer is still yes, which makes it a feel-good read for those beleaguered by college debts. While it has no therapeutic claim, Becker and Posner’s cost-benefit analysis of attending college can calm the tortured mind of a young graduate in search for repayment money to put off plans of jumping into the nearest river.
The two said that while tuition increased rapidly since the 1980s, so too did the monetary returns, with the average 4-year graduate earning 40% more than high school graduates and greater increase for those with graduate degrees. Beautiful cost-benefit analysis like this makes the debt-ridden college graduate wish he never left school at all.
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