1. The average student loan debt in the United States
In the United States, the average student loan debt is $29,200. This is the total amount of money that a person owes on their student loans, including both private and federal loans. The average debt per borrower is $17,000.
There are a number of factors that contribute to the high level of student loan debt in the United States.
First, the cost of attending college has been rising steadily for many years. In the past decade, the cost of tuition and fees at public four-year colleges has increased by 27%. At private four-year colleges, the cost has increased by 28%.
Second, more and more students are taking out loans to pay for college. In the past decade, the number of students taking out loans has increased by 50%.
Third, the average amount of debt per borrower has been increasing. In the past decade, the average amount of debt per borrower has increased by 36%.
Fourth, the rate of default on student loans has been increasing. In the past decade, the rate of default on student loans has increased from 5.0% to 11.8%.
There are a number of reasons why the average student loan debt in the United States is so high. The cost of attending college is rising, more students are taking out loans, and the average amount of debt per borrower is increasing. The rate of default on student loans is also increasing.
2. How student loan debt affects borrowers
The average student loan debt for Class of 2018 graduates was $29,200, up from $28,950 for the Class of 2017, according to a report from Student Loan Hero.1 Of the 44 million Americans with student loan debt, 11.5% are behind on their payments or in default.2 That’s nearly 5 million people struggling to repay their student loans.
defaulting on your student loans can have serious consequences. You could damage your credit score, making it harder to get a car loan, credit card, or mortgage. You could also end up owing money to the IRS if your student loan is forgiven through income-driven repayment or public service loan forgiveness.
Student loan debt can also affect your mental and physical health. A study from the American Psychological Association found that 76% of people with student loan debt reported feeling stressed about their loans.3 stress can lead to anxiety, depression, and even physical health problems.
If you’re struggling to repay your student loans, you’re not alone. But there are ways to get help. You can apply for an income-driven repayment plan, which could lower your monthly payment. You can also look into student loan consolidation or student loan refinancing.
No matter what, don’t wait to get help. The sooner you take action, the better off you’ll be.
3. The different types of student loans available
There are several types of student loans available to help you finance your education. Federal student loans, private student loans, and parent PLUS loans are all options to consider. Federal student loans are issued by the government and typically have lower interest rates and more flexible repayment terms than private student loans. Parent PLUS loans are federal loans that parents can take out to help cover their child’s education costs.
Private student loans are issued by banks and other financial institutions. They often have higher interest rates and less flexible repayment terms than federal loans. Before taking out any loans, be sure to research all of your options and understand the terms and conditions of each loan.
4. The pros and cons of taking out a student loan
There are a lot of factors to consider when it comes to taking out a student loan. On one hand, loans can help you cover the cost of your education and make it more affordable. On the other hand, loans can also put you in a difficult financial situation if you’re not careful. It’s important to weigh the pros and cons of taking out a student loan before making a decision.
The pros of taking out a student loan include:
- You can borrow the money you need to cover the cost of your education.
- Loans can help you fill the gap between your financial aid and the cost of your education.
- You can get a lower interest rate if you have a good credit score.
- You can choose a repayment plan that fits your budget and lifestyle.
The cons of taking out a student loan include:
- You’ll have to repay your loan with interest, which can make it more expensive in the long run.
- If you don’t make your payments on time, you could damage your credit score.
- You may have to pay origination fees or other charges when you take out a loan.
- If you default on your loan, you could face serious financial consequences.
Before you decide to take out a student loan, it’s important to understand both the pros and the cons. Weigh your options carefully and make sure you understand what you’re getting into. Taking out a loan can be a great way to finance your education, but it’s not right for everyone.
5. How to repay student loans
It’s no secret that student loan debt is a huge burden for many Americans. In fact, the average graduate has around $28,000 in student loan debt. If you’re one of the millions of Americans struggling to repay your student loans, you’re probably looking for ways to get rid of this debt as quickly as possible. Here are five tips to help you do just that:
1. Make more than the minimum payment.
If you only make the minimum payment on your student loans, you’ll be paying them off for a long time. Instead, try to make a larger payment each month. Even an extra $50 or $100 can make a big difference.
2. Get a part-time job.
If you can’t afford to make a large payment each month, consider getting a part-time job. Even a few extra hours of work each week can help you make a dent in your student loan debt.
3. Refinance your loans.
If you have good credit, you may be able to get a lower interest rate by refinancing your student loans. This can save you a lot of money over the life of your loan.
4. Consolidate your loans.
If you have multiple student loans, you may be able to save money by consolidating them into one loan. This can help you get a lower interest rate and make it easier to keep track of your payments.
5. Pay off your loans early.
If you have the money, consider making a lump-sum payment to pay off your student loans early. This can save you a lot of money in interest over the life of your loan.
No matter what method you choose, the most important thing is to make sure you make your student loan payments on time. If you fall behind, you could end up hurting your credit score and making it even harder to get out of debt.
6. Tips for managing student loan debt
If you’re like most college graduates, you’re probably dealing with some level of student loan debt. And if you’re like most people, you’re probably not too thrilled about it.
Student loan debt can be a huge burden, both financially and emotionally. It can feel like you’re never going to get out from under it. But there are things you can do to manage your debt and make it more manageable.
Here are six tips for managing your student loan debt:
1. Know what you owe
The first step to managing your debt is knowing exactly what you owe. Make a list of all of your loans, including the lender, the balance, the interest rate, and the minimum monthly payment.
2. Make a budget
Once you know what you owe, you can start to make a budget. Determine how much you can afford to pay each month, and make sure to include your student loan payments in that budget.
3. Prioritize your loans
If you have multiple loans, you may want to prioritize which ones you pay off first. You may want to pay off the loans with the highest interest rates first, or the loans with the smallest balances first.
4. Automate your payments
One of the best ways to manage your debt is to automate your payments. This way, you don’t have to worry about forgetting to make a payment or being late on a payment.
5. Refinance your loans
If you have good credit, you may be able to refinance your loans and get a lower interest rate. This can save you money over the life of your loan and help you pay off your debt faster.
6. Get help if you need it
If you’re struggling to manage your debt, don’t be afraid to seek out help. There are many resources available to help you get your debt under control. You can find helpful information on the internet, from financial advisors, or from student loan counseling services.