Student debts are on a rise in our country per the National Center for Education Statistics (NCES) reports. According to these reports two thirds of students in America have debts with an average of $19,237 student loan debt after graduation. The median debt load is $17,120 with a quarter of undergraduates borrowing more than $25,000 and a tenth borrow more than $35,000.
These debt totals are much higher for students pursuing graduate degrees. Graduate students add tens of thousands of dollars on top of their original student debt. Depending on the degree, average debts range from $42,000 to $126,000. It makes one consider if it's really worth going for that MBA.
College education in our country is expensive and every year students going to college get into loans for their tuition. Tuition every year is increasing at an alarming rate which is more than the rate of increase of cost of living.
An ambition of college education is an uphill task. Working while pursuing education is a path strewn with thorns. Multi-tasking gets students into dipping grades due to busy schedules. Funds for college can be obtained through other means if students lack on finances.
The most popular loans are federal loans which anyone can avail. All students are eligible to receive federal loans regardless of credit score or a co signer or any other impediments. Federal loans do not require you to pay back until six months after graduation.
Private or alternative loans have become increasingly popular for students as of late. Private loans have higher rate of interest and are less favorable for the borrower. In 2009, students borrowed $18.5 billion from private lenders, up by six percent from the previous school years and now equal to 25% of all student loans in America. Private loans are disbursed basing on credit scores. Students with good credit score receive private loans with lesser rate of interest as well as smaller loan fees.
Federal loans are better option for students opting for loans. Federal Stafford loans are subsidized and about 5.5 million students borrow these loans every year. Federal loans have some borrower protections if a student is unemployed. Interest on federal loans such as Stafford or Perkins is paid by the government while you are in college. The interest rates on these loans are fixed and manageable. The interest you pay towards student federal loan is tax deductible.
These debt totals are much higher for students pursuing graduate degrees. Graduate students add tens of thousands of dollars on top of their original student debt. Depending on the degree, average debts range from $42,000 to $126,000. It makes one consider if it's really worth going for that MBA.
College education in our country is expensive and every year students going to college get into loans for their tuition. Tuition every year is increasing at an alarming rate which is more than the rate of increase of cost of living.
An ambition of college education is an uphill task. Working while pursuing education is a path strewn with thorns. Multi-tasking gets students into dipping grades due to busy schedules. Funds for college can be obtained through other means if students lack on finances.
The most popular loans are federal loans which anyone can avail. All students are eligible to receive federal loans regardless of credit score or a co signer or any other impediments. Federal loans do not require you to pay back until six months after graduation.
Private or alternative loans have become increasingly popular for students as of late. Private loans have higher rate of interest and are less favorable for the borrower. In 2009, students borrowed $18.5 billion from private lenders, up by six percent from the previous school years and now equal to 25% of all student loans in America. Private loans are disbursed basing on credit scores. Students with good credit score receive private loans with lesser rate of interest as well as smaller loan fees.
Federal loans are better option for students opting for loans. Federal Stafford loans are subsidized and about 5.5 million students borrow these loans every year. Federal loans have some borrower protections if a student is unemployed. Interest on federal loans such as Stafford or Perkins is paid by the government while you are in college. The interest rates on these loans are fixed and manageable. The interest you pay towards student federal loan is tax deductible.
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