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Believe it or not, graduation season is creeping up. And that means it’s the time of year I’m reminded how much I hate what student loans have done to the financial health of our nation’s graduates. Unfortunately, according to the Federal Reserve Bank of New York’s latest report on debt and credit among U.S. households, debt — especially student debt and delinquency levels — continued to grow in 2015.
Don’t take this post the wrong way; I’m not upset with you. The levels of student loan debt are just spiraling out of control. I feel the need to give a little tough love on this subject, and hopefully it’ll get through to at least one student or parent.
Here are the top 10 things I hate about student loans.
Need I say more? Well, I will. Students and parents of college students need to do their homework to understand the full ramifications of student loan debt. Educate yourself on the different payment terms between federally guaranteed and private student loans.
Before taking out loans, estimate your total balance at graduation and use a payment calculator online to see what your payments will be. Can you reasonably expect to afford those payments based on a starting salary (which you also need to research) in your chosen career? And once you do start paying down your loans, know your rights as a borrower and remember there is always room for negotiation. If the answer is no, signing on for the loans may not be your best option. Get real and know your options! Your future self will thank you.
This story is an Op/Ed contribution to Credit.com and does not necessarily represent the views of the company or its partners.
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August 26, 2020
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