Unsettled student loans exceeded $1-trillion last year, surpassing the total amount of credit card, auto loan and home-equity debt in America. While most agree that college student debt is a major dilemma, there is little accordance on precisely how to fix it. Though increase in tuition costs has slowed in recent years, what students actually pay in the end is still on the rise. Possible solutions are being offered by government officials and educational advisors, however there is still no clear cut solution to the crisis. As more and more students take out college loans and fewer graduates are able to secure jobs upon college completion, many are faced with the challenge of starting off their lives in crippling debt.
Firstly, students should
…show more content…
There is also a 6-month grace period after college completion in which students do not have to make student loan repayments. Most graduates are not yet on the income trajectory that their education would afford and therefore cannot keep up with the high monthly payments. Repayment options are offered to assist graduates in upholding their loan agreement as their financial state evolves. Individuals struggling to make the payments may be considered for an extended payment plan. These plans allow students to make payments over a longer term. For example, converting a 10-year loan to a 25-year loan. This is a good option for those who require lower monthly payments, but in the end these repayment plans result in higher interest costs. Unlike most debts, student loans are usually prohibited by federal law from being forgiven by filing for bankruptcy. Current laws require that individuals with outstanding student loans continue making their payments even if they do decide to claim bankruptcy. Student loans are very difficult to eradicate through bankruptcy so this is why affordable repayment plans are very