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Some students deny continuing their study and some attempt suicide. When they start thinking about their education. They think that they need to pay a heap of debts that is why they get back off.

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In this Padlet, you will be able to learn the concept of student debt loans in elaboration with interesting images, videos, and websites. For instance, you will be able to learn how to pay loans on time, what type of loans, benefits, and drawbacks of loans. I hope you will find this an interesting Padlet.

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Student debt is money owed on a loan that was taken out to pay for educational expenses by students. Rapidly rising college tuition costs have made student debt the only option to pay for college for many students. There is different law to take loans in every country. Various factors make students take debts. The most common is a decrease in the income premium of graduates compared to non-graduates.
I chose this website because it gives a detailed description of student debt, its history, statistics, and the difference in the laws to take a loan in different countries and it gives information about the political and social reactions happening in the country due to student debt.

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Student debt is a form of debt that is owed by an attending, formerly withdrawn, or graduated student to a lending institution, or to a financial institution.

The lent amount, often referred to as a student loan or the debts may be owed to the school (or the bank) if the student has dropped classes and withdrawn from the school, or if the student has graduated but is underemployed. Withdrawing from a school, especially if a low (or no- income student) has withdrawn with a failing grade, could deprive the student of the ability of further attendance by disqualifying the student of necessary financial aid. Student loans also differ in many countries in the strict laws regulating renegotiating and bankruptcy. Due payments may be a retroactive penalty for services rendered by the school to the individual, including room and board.

As with most other types of debt, student debt may be considered defaulted after a given period of non-response to requests by the school or the lender for information, payment or negotiation. At that point, the debt is turned over to a Student Loan Guarantor or a collection agency.

Many factors are accountable for student debt. One factor is the decline in the income premium for graduates compared to non-graduates. It is not yet negative, but has declined to historic lows for those born since 1980 (with more pronounced downward trajectories for those with post-graduate degrees). Another factor is amount of interest on the loans. Yet another factor is the new guidelines developed by the federal government. There are now new rules deciding who can borrow, as well as how much debt they can take on. Colleges and universities have been increasing the costs for students to attend schools. This is subsequently increasing the amount of debt the students take on as student loans. Reports have shown that borrowers who finished college in the early 1990s were able to manage their student loans without an enormous burden. The average debt increased 58% since in the seven years from 2005 to 2012. The debt for students in the United States rose from $17,233 in 2005 to $27,253 in 2012. Some blame the economy for the debt increases, but in the same 7-year period credit card debt and auto debt have decreased. According to the American Center for Progress' report on the Student Debt Crisis, within the past three decades the cost of attaining a college degree has drastically increased by more than 1,000 percent. If student debt went in rhythm with inflation since 1992, then graduates would not be facing this immense debt pressure. From 2015 to 2017, the student loan debt in United States saw a steady ascension, where New Hampshire carried the highest average debt per student, at $27,167. Newer data, as of 2018, reflects an even larger crisis and cumulative level of student debt.

As of 2018, a total of 44.2 Million borrowers now owe a total of over $1.5 Trillion in student debt. In addition to more borrowers, and the total amount owed having more than doubled (up 250%) from $600 Billion to $1.5 Trillion in 10 years, according to Forbes Magazine , the rate of delinquency greater than 90 days, or default, has doubled to over 11% nationwide, according to the Federal Reserve.

A student loan servicer is a company which facilitates different aspects of a loan. The servicing group will typically be responsible for maintaining records on a particular loan, handling loan distribution, and providing requested information to the loan recipient. US student loan servicers include Great Lakes Educational Loan Services, Navient, FedLoan Servicing (PHEAA), MOHELA, HESC/EdFinancial, CornerStone, Granite State - GSMR, OSLA Servicing, and Debt Management and Collections System.

In recent years, some student loan servicers have gone under legal scrutiny for alleged wrongdoing. Navient, formerly Sallie Mae, was charged with multiple class action lawsuits for their loan servicing methods. Navient was also sued by the Consumer Financial Protection Bureau (CFPB) for improper handling of borrower relations. FedLoan has also received public pressure for possible mistreatment of loan recipients.

There are two types of loans students borrow in the US: Federal loans and Private loans. Federal loans have a fixed interest rate, usually lower than private loans' interest, set annually by the congress. The direct subsidized loan with the maximum amount of $5,500 has an interest rate of 4.45%, while the direct plus loan with the maximum amount of $20,500 has an interest rate of 7%. As for private loans, there are more options like fixed interest rate, variable interest rate, and income based monthly plans whose interest rates vary depending on the lender, credit history and cosigners. The average interest rate for a private loan in 2017 was 9.66%. The Economist reported in June 2014 that U.S. student loan debt exceeded $1.2 trillion with over 7 million debtors in default. In 2014, there was approximately $1.3 trillion of outstanding student loan debt in the U.S. that affected 44 million borrowers who had an average outstanding loan balance of $37,172. As of 2018, outstanding student loan debt totals 1.5 trillion.

The interest rates are a major factor in the alarming debt numbers, however, the booming of prices of college is another major factor for US tremendous student debt. The Public universities increased their fees by a total of 27% over the five years ending in 2012, or 20% adjusted for inflation. Public university students paid an average of almost $8,400 annually for in-state tuition, with out-of-state students paying more than $19,000. For two decades ending in 2012, college costs rose 1.6% more than inflation each year. Government funding per student fell 27% between 2007 and 2012. Student enrollments rose from 15.2 million in 1999 to 20.4 million in 2011, but fell 2% in 2012. Bloomberg reported in July 2014 that: "The biggest growth in the program came in the past decade, as student debt rose an average of 14 percent a year, to $966 billion in 2012 from $364 billion in 2004, according to New York Fed data."

There were around 37 million student loan borrowers with outstanding student loans in 2013. According to the Federal Reserve Bank of New York, outstanding student loan debt in the United States lies between $902 Billion and $1 Trillion with around $864 Billion in Federal student loan debt. As of Quarter 1 in 2012, the average student loan balance for all age groups is $24,301. About one-quarter of borrowers owe more than $28,000; 10% of borrowers owe more than $54,000; 3% owe more than $100,000; and less than 1%, or 167,000 people, owe more than $200,000. Of the 37 million borrowers who have outstanding student loan balances, 14%, or about 5.4 million borrowers, have at least one past due student loan account. For every student loan borrower who defaults, at least two more borrowers become delinquent without default. In 2010 for the first time ever, student loan debt exceeded credit card debt and in 2011 student debt surpassed auto loans (both of which were decreasing). According to Mark Kantrowitz, publisher of FinAid.org, student loan debt is growing by $3,000 per second. According to a report by The Institute for College Access and Success the average debt from those who graduated in 2013 topped $30,000 in six states and was only below $20,000 in one state. Data released by the Federal Reserve Bank of New York showed that in the fourth quarter of 2014 delinquency rates for students dipped to the point where approximately one in nine student loans is past due. As of 2015 over half of outstanding student loans are in deferral, delinquency or default. Rising student loan debt is exacerbating wealth inequality.

Student loan borrowers that attended a for profit, and two year community colleges, in comparison, earn low annual salaries; an average of $22,000 for people withdrawing from schools as of 2010. This means that these people have troubles paying back their loans. The new evidence is reliable with the previous data. For example, the statistics presenting that default rates are essentially lower within the demographic of borrowers with large loans than within borrowers with small loans. However, the new evidence which goes back twenty years, shows how much the scenery of borrowing has changed. Currently, most borrowers are older and attended a for profit or two year community college. About ten years ago, the standard borrower was an established student at a four-year university.

In recent years, tuition has been rising due to the cuts of government funding in education. As an example, more specifically, the University of Pittsburgh has had an increase in tuition of 3.9 percent for the academic school year of 2014-15. In 2014, the U.S. Department of Education ranked Pitt as the most expensive public university for tuition and fees at $16,240, just ahead of Penn State University.

In 2005, the difference in median annual income between those with a bachelor's degree vs. those with a high school diploma was $16,638, though this varies considerably by field of study.

In January 2019, the Federal Reserve said that student loan debt has more than doubled in the last decade, and is forcing many in the millennial generation to delay buying homes. A 2019 survey by Bankrate found that student loan debt is also forcing millennials to delay other financial and life milestones, such as building emergency savings, saving for retirement, or paying off other debts. Beth Akers, a senior fellow at the Manhattan Institute for Policy Research, points out that 66% of millennials have no college debt; most who do have debt proportional to their income; and that for those who drop out or fail to get a high-income job after getting an expensive degree, there are government programs that limit payments to a reasonable percentage of income and that forgive loans after 10-20 years if they cannot be repaid.

The growing problem of student debt has caused many reactions from young people throughout the United States. As a result, the Occupy Colleges and Occupy Student Debt movements merged in 2012 in an effort to gain support from students around the country. There have been significant efforts made via social media for the Occupy Student Debt campaign. In particular, students all over the United States have posted their personal student debt testimonies. While some success stories of students eliminating debt have been reported on, they are met with heavy skepticism. Since last October, Occupy Student Debt has provided a platform for over 800 students to share their horror stories. Because of this, other organizations such as, Rebuild the Dream, Education Trust, and the Young Invincible, have joined in the effort and started similar platforms. The Occupy College movement itself has staged over 10 direct actions. They have also gathered over 31,000 signatures on the White House's petition site, "We the People". As a result, President Obama announced the Pay as you Earn initiative. Another petition, titled 'Support the Student Loan Forgiveness Act of 2012' on MoveOn.org, which seeks similar relief for student borrowers, has gotten over one million signatures. HR 4170: "The Student Loan Forgiveness Act of 2012" would give relief to borrowers with both federal and private student loans. HR 4170 also includes the "10-10" programs, which allows borrowers to pay 10% of their discretionary income for ten years with the remaining balance forgiven afterwards.

In April 2012, student loan debt reached US$1 trillion. Severity of the student debt burden represents such a threat to the middle class that some have demanded a general bailout. Anthropologist David Graeber, author of Debt: The First 5000 Years, argues that student debt is "destroying the imagination of youth":

If there's a way of a society committing mass suicide, what better way than to take all the youngest, most energetic, creative, joyous people in your society and saddle them with, like $50,000 of debt so they have to be slaves? There goes your music. There goes your culture. There goes everything new that would pop out. And in a way, this is what's happened to our society. We're a society that has lost any ability to incorporate the interesting, creative and eccentric people.

In 2014, a Chilean activist, artist Francisco Tapia, known as "Papas Fritas" (French Fries) "burned $500 million worth of debt papers" from Viña del Mar University, and displayed the ashes in a van as an art project. "The University was being shut down due to financial irregularities. 'It is a concrete fact that the papers were burned. They are gone, burned completely, and there's no debt,' said Papas Fritas in his first U.S. broadcast interview. 'Since these papers don't exist anymore, there's no way to charge the students.'

On November 12, 2015, students organized rallies at more than 100 college campuses across the United States to protest crippling student loan debt and to advocate for tuition-free higher education at public colleges and universities. The demonstrations took place just days after fast food workers went on strike for a minimum wage of $15 an hour and union rights.

In 2015, Central Saint Martins student Brooke Purvis announced that he would burn his student loan as a form of protest art, raising awareness about student debt. It is argued the art work addresses the subject matter of the materialism of money and brings to light the political issues of the U.K student loan system.

A February 2018 research paper from the Levy Economics Institute of Bard College argues that government cancellation student debt in the United States would result in rising consumer demand, along with economic growth and increased employment. Over the following decade, the GDP would increase by between $86 billion and $108 billion annually, which would result in an increase of between 1.2 and 1.5 million jobs and a decreased unemployment rate of 0.22 to 0.36 percent.

In April 2019, Elizabeth Warren, a U.S. Senator from Massachusetts seeking the nomination in the 2020 Democratic Party presidential primaries, added a proposal to her presidential platform to cancel student debt and make public colleges tuition free. In June 2019, U.S. Senator from Vermont Bernie Sanders, who is also seeking the 2020 Democratic nomination, offered a plan for the cancellation of all 1.6 trillion in outstanding student loan debt which would be paid for with a tax on Wall Street speculation.

According to a Hill-HarrisX poll, 58% of registered voters are in favor of making public colleges tuition free and also support abolishing all outstanding student loan debt.

It was revealed in September 2019 that the U.S. Army is using the student debt crisis to boost recruitment, more so than the ongoing conflicts it is engaged in, and because of this exceeded its recruitment goals. The Head of Army Recruiting Command, Maj. Gen. Frank Muth, said that "one of the national crises right now is student loans, so $31,000 is [about] the average. You can get out [of the Army] after four years, 100 percent paid for state college anywhere in the United States."

Student loan resistance groups

The most visible student loan resistance groups in the US are the Debt Collective, Strike Debt, and Student Loan Justice.

As of 2018, Canada ranks third in the world (behind Russia and South Korea) for the percentage of people in the age group of 25-34 who have completed tertiary education. But Canadians are not prone to the rapid accumulation of student loans. As of September 2012, the average debt for a Canadian leaving university was 28,000 Canadian dollars, and that accumulated debt takes an average of 14 years to fully repay based on an average starting salary of $39,523. To temporarily help their low income struggling citizens with student debt, Canada has a program called "interest relief". It grants 6 months free of mandatory payments, for a maximum of 30 months. The Canadian government pays for the interest on those loans during the grace period, so the loan amount is the same at the end of the grace period. Also, students are relieved of their debt after 15 years. As a nation, Canadians have accumulated more than $15 billion of student loan debt as they continue to fight tuition rates from further skyrocketing.

There is concern about the level of student debt in the United Kingdom. There is also concern about possible changes in government policy forcing graduates to pay back more. Andrew Adonis claims most student loans will never be repaid, Adonis also states that university leaders have failed to improve teaching standards but rewarded themselves handsomely with high salaries. The Institute for Fiscal Studies claims that 75% of graduates will never repay all their debts. Andrew McGettigan, loans system expert said, "Until the government removes their right to retrospectively change terms, then you as a borrower appear to be on the hook to future policy changes". Sebastian Burnside NatWest economist, said "These latest figures show student debt is becoming of greater priority with every passing year. Student debt is the fastest growing type of borrowing and is rapidly becoming economically significant."

Germany has both private and public universities with the majority being public universities, which is part of the reason their graduates do not have as much debt. For undergraduate studies, public universities are free but have an enrollment fee of no more than €250 per year which is roughly US$305. Their private universities cost an average of €10,000 a semester which is about US$12,000. Private universities account for 7.1% enrollment with the rest attending the public universities. The private universities have a smaller teacher to student ratio and tend to offer more specialized programs which is why Germany is experiencing a boom in private universities enrollment in recent years for majors like law and medicine. However, most students still prefer public universities due to the drastic difference in tuition cost. The only expense students take out loans for in public universities is the living cost which ranges from €3600 to €8,200 a year depending on the university location. However, the repayment of this loan is interest free and no borrower pays more than €10,000 regardless of the borrowed amount. In 2005, the average debt at graduation was €5,600 which is US$6,680. The chance to gain a bachelor's through well respected universities at a reasonable price without interest packed loans attracts many foreign students as seen through increased enrollment of students from all around the world.

The average tuition for a bachelor's degree in France is around 190 euros a year, around 620 euros a year for engineering degrees, around 260 euros a year for a master's degree and around 400 euros a year for a PhD. These prices are similar to its neighboring country, Germany. Housing, transportation and health insurance costs are not included in the tuition price. Students are able to take out loans in order to pay for these expenses. Only less than 2% students take out loans as there is financial assistance to pay for the full tuition or half of the tuition for low income families, depending on their needs.

Excluding students from outside Switzerland, the EU, or EEA, there is no tuition fee for students studying at Finnish Universities. There are, however, many exemptions for non-Finnish citizens studying at a Finnish University to not pay tuition as well. In addition to going to college for free, students also receive student grants from the government. These grants are generally used for housing and compensates for up to 80% of rent for students who live independently and/or not qualified to receive child benefits. Through Kela, 40% of students take out student loans in addition to student grants. Student loans average to about 650 EUR a month for higher education within Finland and an average amount of 800 EUR a month for Finnish students studying abroad. These loans are not through Kela itself, but is a guaranteed loan through the student's bank of choice. Besides, student loans and grants, Finland also compensates its citizens, and others that qualify, a meal subsidy, school transport subsidy, and a student loan compensation for students who finish schooling in a target time.

In August 2017, Finland saw student loan drawdowns double to 143 million EUR from August 2016 as a result of being able to borrow 650 EUR a month from the previous 400 EUR a month. The reform for financial aid resulted in students that qualify for government-guaranteed loans to increase to over 60%.

Analogously, the educational system in Denmark resembles the one in Finland. There are no tuition fees for Danish and EU students. Students in Denmark also receive student grants from the government to enroll into an institution of higher education. Every Dane over the age of 18 is entitled to this public support if they decide to further their education. The scheme and the conditions for grants and loans are different if they are a foreign citizen. However, financial support is still available if the applicant is from one of the EU member states. Apart from the public support there are many corporate sponsored scholarships for international students with different requirements.[citation needed ]

Best, J. and Best, E. (2014). The Student Loan Mess: How Good Intentions Created a Trillion-Dollar Problem. Atkinson Family Foundation.

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Student debt is a form of debt that is owed by an attending, formerly withdrawn, or graduated student to a lending institution, or to a financial institution. The lent amount, often referred to as a student loan or the debts may be owed to the school (or the bank) if the student has dropped classes and withdrawn from the school, or if the student has graduated but is underemployed.

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This website describes three specific detailed types of student loan debt. These types are federal loans, private loans, and refinance loans when student complete their studies from high school. Federal loans are safe as they use protections like the ability to tie payments to income when you graduate or get loans forgiven if you work in a public service field.
Moreover, banks, credit unions, and states make private loans and refinance loans. However, federal loans are issued by the government.
I select this website because it gives you thorough definitions of subtypes of three core loans. I think it is interesting information for you to read with full knowledge.

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There are three types of student loans: federal loans , private loans and refinance loans once you leave school.

Federal loans are provided by the government, while banks, credit unions and states make private loans and refinance loans. Federal loans are more flexible overall. The particular loan that's best for you depends on factors like your financial need, year in school and whether you have a credit history.

To get federal loans, fill out the Free Application for Federal Student Aid, known as the . You can apply for private or refinance loans directly with the bank or financial institution you want to borrow from.

The right loan is key to taking on no more student loan debt than is necessary. Here's a guide to understanding student loans and how they work.

Types of federal student loans

Most federal loans don't require a co-signer or good credit; nearly every student with a high school diploma is eligible to receive them. Fill out the Free Application for Federal Student Aid, known as the , to apply.

Until September 2017, these were available to undergraduates and graduates with particularly high financial need. Students borrowed money from, and repaid it to, their school. The government isn't making new Perkins loans for the 2019-20 school year. But those with outstanding Perkins loans who work in public service careers may be eligible for Perkins loan forgiveness .

Types of private student loans

Banks and other financial institutions make private loans to students. When you apply for private loans , the lender will want to see proof you can repay it, usually in the form of a good credit score. A co-signer can help you qualify; that person will be responsible for the loan if you can't pay it back.

Private loans are available for specific circumstances if you need them.

Many states offer their own loan programs, but they generally behave more like private loans than federal loans. Examples of state lenders include:

Search the U.S. Department of Education's database of state loan options to see what's available where you live.

Types of student loan refinancing

After you graduate and have shown responsible payment history, you may be able to refinance student loans. That's when a private lender pays off your loans and gives you a new repayment schedule and lower interest rate. Generally, you need a credit score of 690 or higher to refinance. You'll lose federal loan protections if you include federal loans in the package.

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There are three types of student loans: federal loans , private loans and refinance loans once you leave school. Federal loans are provided by the government, while banks, credit unions and states make private loans and refinance loans. Federal loans are more flexible overall.

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Website #3 How long will it take to pay off student loans?

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Website #3 How long will it take to pay off student loans?

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Paying off a student loan is a big headache for students. Various methods can use to pay off loans. This website describes tips and tricks to pay off loans very fast and with time. Some of them pay more than the minimum amount, pay more than once per month, consider income-driven repayment plan, create a budget, and small goals to the setting. In this way, you remove the temptation to spend repayment funds.
I choose this website because it takes off the stress from the shoulder of students. Moreover, it gives useful tips to pay off loans and get rid of the problems that arise due to the delay to pay off loans.

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How long does it take to pay off student loans ? It varies based on the strategy you use to repay. But if you're unsure how to move forward, our calculators can help find the best payoff plan for you.

Use our Use our Percentage of Salary Calculator to build a repayment plan based on using a portion of your yearly earnings. Monthly Payment Calculator to build a repayment plan based on contributing monthly payments.

Both calculators can help you determine your ideal monthly payment, as well as:

How long to pay off a student loan (in years)

Total interest you'll pay over the life of your loan

Note: If your contributions are less than what monthly interest would cost, the calculator will not be able to determine a payoff time frame.
Pay off student loans based on salary

Choose a percentage of your salary as payment, and see how long it will take to pay off your loan.

RESULTS

Pay off student loans based on monthly payments

Enter your loan amount, interest rate and monthly payment to see when your loan will be paid off.

RESULTS

*Each student loan has its own terms giving a student a minimum payment amount. If your loan is too high and your chosen payoff amount too low, because of interest, the loan will never be paid off.

4 tips for paying off student loans

So you've figured out your ideal repayment plan, but maybe you're still asking, " When will my student loans be paid off ?" If so, here are some additional tips and tricks to help you pay off your student loans faster - without breaking the bank.

1. Make larger payments

If it's possible, pay more than the minimum amount. Often, lenders will apply your monthly payment to your loan's interest before its principal. If you pay only the minimum amount, then less of your money will go toward paying down the principal. You'll end up paying more in interest over the life of the loan.

By paying more than the minimum , you'll pay down more of the principal - which can help you pay off your student loans much sooner.

2. Pay more than once per month

Making an extra payment in addition to your required payments can go a long way toward reducing the principal of your student loan. Your loan may have less interest accrued if you can make another payment within the same month. A more significant percentage of your money may be applied to the principal as a result.

3. Create a budget - and stick to it

Paying off a student loan is a long-term effort. Creating a budget can identify which expenses are necessary and which aren't. You may discover how daily spending decisions affect your long-term goals and find ways to pay down your loan faster in the process.

Setting a goal for yourself can be a great way to stick to your budget. Once you have an end date in mind, you'll feel each payment bringing you one step closer to paying off your loan.

Another great way to avoid the urge to spend? Create a dedicated student loan account and deposit money automatically. That way, you may remove the temptation to spend repayment funds.

4. Explore all your options

There's more than one way to pay off a student loan. Depending on your circumstances, you may be surprised at the various repayment options available to you:

If you qualify, these options can help you pay down your loan faster. But no matter your situation, with good planning and discipline, you can pay off your student loan faster than you expected.

STUDENT LOANS: Compare student loan interest rates today.

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How Long Will It Take To Pay Off My Student Loan?

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How long does it take to pay off student loans ? It varies based on the strategy you use to repay. But if you're unsure how to move forward, our calculators can help find the best payoff plan for you.

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Website #4 Pros and Cons of Student Loans

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Website #4 Pros and Cons of Student Loans

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This website describes the advantages and disadvantages of student loans. Student debts help in affording the college expenses. Paying student loans build a credit score which is beneficial throughout life. These loans can also be used for other college expenses like textbooks and laptops along with tuition, room, and board. However, the cons are student loans are very expensive and failure in paying them off makes it impossible for students to get rid of them. Taking student loans also starts the after-college life in debt. Individuals must give up other financial goals until they pay the debt.
I selected this website as it elaborates the advantages and disadvantages very well. These are realistic to student life.

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Okay, so my opinion on student loans is no secret: Student loans suck. That's why I built this website, after all. But the truth is, student loans are an essential part of many people's lives. Without them, a college education could be out of reach for millions of students every year, often making them a necessary evil.

If you're brand-new to the world of student loans, you should take a look at our introductory guide that will help you understand all of the student loan basics.

Are you trying to decide if taking out student loans to pay for school makes sense for you? Are you wondering if the cost of student loans are worth it in the long run? The answer to those questions is highly dependent on each person asking them; the answer won't be the same from me to you or from you to your siblings or friends. All you can do is weigh the positives and negatives, the advantages and disadvantages, and make the decision that seems best for your own personal situation.

Need help keeping track of your student loans? Download our free Student Loan Spreadsheet!
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With that in mind, I wanted to compile a list of all the major pros and cons of taking out student loans to pay for college. If you are applying for colleges and are considering taking out student loans to afford your education, keep these student loan benefits and drawbacks in mind before making a decision either way.

Pros and Cons of Student Loans

Pros of Student Loans

Cons of Student Loans

1. Student loans let you afford college.

1. Student loans can be expensive.

2. Student loans can mean the difference between an okay school and your dream school.

2. Student loans mean you start out life with debt.

3. Student loans can be used for things besides tuition, room, and board.

3. Paying off student loans means putting off other life goals.

4. Paying off student loans will help you build credit.

4. It's almost impossible to get rid of student loans if you can't pay.

5. Defaulting on your student loans can tank your credit score.

Pros of Student Loans

I know, the words "pro" and "student loans" don't seem like they should ever be used together in the same sentence. But I promise you, there are at least a few. Otherwise, no one would ever take out student loans!

1. Student loans let you afford college.

The average cost of college tuition, room, and board for the 2017-18 academic year is between $20,770 (4-year, public, in-state) and $46,950 (4-year, private), according to College Board. How many college students or recent high school graduates do you know that can afford between $80,000 and $188,000 for four years of college? Even when you lump in help from parents, it's a small percentage of Americans that can afford a price tag like that without taking out any student loans at all.

The simple fact is, college is so expensive that for the vast majority of Americans, it would be nearly impossible to afford without the help of student loans. I would definitely say that something that allows you to follow the American Dream and earn a quality education can't be all bad.

2. Student loans can mean the difference between an okay school and your dream school.

Look at the chart above, and notice the huge difference in price between a public 4-year college and a private 4-year college. The private college costs more than double what the public university does.

Now imagine that your parents did their best over the years to sock away money over the years for your education, and they were able to save enough to cover four years at a public university. If the public university offers the courses you want to take and fits into your plan, then great: You can graduate from college debt-free!

But what if it has always been your dream to go to Yale, or some other private school. You're accepted, but your parents weren't able to save enough money to cover all of it. You'd be stuck still having to cover $20,000 though other means, most likely a mix of financial aid and student loans. If you didn't have access to student loans, you would be forced to go to the college that you could afford out of pocket. But because student loans exist, you have the ability to decide: Go to the okay school and graduate debt-free, or go to your dream school and take out student loans to pay for it.

The decision you make is, ultimately, your own, and whether or not going to the more expensive school is the better decision will depend on your own financial situation. That being said, the fact that student loans offer the ability to choose is definitely a positive.

3. Student loans can be used for things besides tuition, room, and board.

Many people think of student loans as only being able to be used on things like tuition, room, and board. And though it's true that that is what you will use the bulk of your loan money on, you can also use your funds for essential college expenses like textbooks, a laptop, and computer software. Those are not insignificant costs, and the fact that student loans can ease the burden on you and your family is a good thing. However much student loans suck, they carry much lower interest rates than expensive credit cards or personal loans.

That being said, when it comes to using your student loan funds, you should of course be smart with how you spend it. Only buy what is necessary for your education. No splurging! By keeping your college expenses as low as possible, you'll be able to take out fewer student loans. And that means more money in your pocket once you graduate.

4. Paying off student loans will help you build credit.

Yes, that's right: Student loans, used responsibly, can help college students and graduates build their credit scores. In fact, because many college students don't have any other bills or debts associated with their names, student loans may be the only way for students to begin building their credit history. Having a good to excellent credit score will come in handy throughout the rest of your life as you apply for apartments, look for credit cards, finance a home purchase, and even when you're applying for jobs.

But to realize these awesome benefits, you've got to make sure you're using student loans responsibly. Only take out as much as you know you can repay, try making interest-only (or more!) payments while in school to keep your balance low, and make sure that you always- always! -make your monthly payments.

Cons of Student Loans

1. Student loans can be expensive.

When you borrow student loans to pay for your college education, you don't just have to pay back the amount that you borrowed: You have to pay back interest as well. This can range anywhere from 4.45-7% for federal student loans (in 2018) to a high of 11-15% for private student loans. On the high end, that can be comparable to a credit card. If you can afford to pay for college without using student loans, it would definitely be in your best interest to do so. And be sure to always accept federal student loans first, before turning to private student loan companies, to save the most money. Follow this order when accepting your student loans to graduate as cheaply as possible.

2. Student loans mean you start out life with debt.

If you rely on student loans to pay for college, that means that you will start out your adult life in debt. Sure, that college education might mean that you earn more money over your lifetime than someone with only a high school diploma. But, depending on how much you borrow, it could mean for a difficult first few years out of college, especially if, like millions of other college graduates, you're having a hard time finding a job that pays enough money to allow you to live a decent life. (Luckily, if you're having a hard time making payments on your federal student loans, you have options.)

Taking out fewer (or no) student loans could mean the difference of being able to live a comfortable life and struggling just to make ends meet. Take it from me, it's no fun living in your mother's basement until you're 28 years old.

3. Paying off student loans means putting off other life goals.

The average monthly student loan payment in 2018 is $351. But many college graduates find themselves paying higher amounts, especially those who had to take out private student loans. (I personally pay $611 every month to cover my student loans, and that's without factoring in the extra payments I make to pay them off faster.) That's money that you could be using to save for a down payment on a house, finance a wedding, or invest for your long-term financial goals. If you've got a substantial amount of student loan debt, you might not be able to start pursuing these other financial goals until after you've finished paying off your debt, and at that point you'll have to double your efforts to make up for lost time. No bueno.

4. It's almost impossible to get rid of student loans if you can't pay.

If you can't afford to pay your mortgage, your credit card bills, your car loans, or your medical bills, it might seem like your world is coming to an end. But you've got one final emergency valve you can release in those situations which can allow you to dig your way out of debt: You can declare bankruptcy.

Editor's Note: Declaring bankruptcy is by no means something to take lightly. Yes, it has the potential of drastically reducing the amount of money you owe on your debts, but it will also cause your credit score to plummet for nearly a decade after the process is done. It's there for emergencies.

Unfortunately, declaring bankruptcy will very rarely get rid of your student loans. Under current law, they're nearly impossible (but not entirely impossible) to discharge in bankruptcy, and that's a big deal for people who find themselves unable to pay for whatever reason. Imagine not having health insurance, being diagnosed with cancer, taking on medical debt to afford chemotherapy in order to live, and then needing to declare bankruptcy because you can't afford your hospital bills. And then, on top of that, still having to pay your student loans.

Luckily, there are some other ways of getting rid of student loan debt through discharge and forgiveness.

5. Defaulting on your student loans can tank your credit score.

I mentioned above that responsibly using student loans can help you build a credit history and, with it, a credit score that will be useful throughout your life. But the alternative also holds true: If you are irresponsible with your student loan use, you can cause significant damage to your credit score.

What does irresponsible use of student loans look like? Taking out more than you can expect to pay off after graduation, failing to make your monthly payments on time, and defaulting on your student loans can all have major negative consequences for your credit score. Defaulting is the worst of all outcomes, as it means that you've gone for more than 270 days without making a payment on your student loan.

A bad credit score can follow you throughout your life, making you pay more for everything from credit cards to car loans to mortgages. It could even cost you your job.

Luckily, if you find yourself unable to make your student loan payments, you have options available to you. Income-based repayment plans can help you find a payment amount that fits into your monthly budget; deferment and forbearance can see you through periods of economic hardship, and the Department of Education has even set up a default rehabilitation program to help you recover from default without damaging your credit score. If you can't make your payments, you need to communicate to your lender.

A Necessary Evil

I can honestly say that there is nothing inherently bad or wrong with the concept of student loans. People borrow money to pay for things that they need all the time. Car loans, mortgages, college-think of all the significant things that you might not be able to afford without relying on debt. Would you be better off if you could pay for these things yourself so that you don't need to pay interest on top of what you borrowed? Of course. But for many Americans that just isn't an option.

Student loans, used properly, can make a lot of sense and can be used for a lot of good. The real issue isn't the concept of student loans, but the reality: High interest rates, laws that make it near impossible to discharge college debt even in bankruptcy, astronomical college prices that each year pull the dream of a college education out of reach of millions of Americans. That's why it's so important that if you do decide to take out student loans, you limit the amount you borrow as much as possible and then pay them off as quickly as possible once you graduate.

Are you looking for ways to pay back your student loans? These articles can help:

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Are you considering taking out student loans to pay for your college expenses? Before you commit to any decision, make sure that you weigh the pros and cons of taking out student loans so that you're sure you're making the right decision for your personal situation.

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In this video, the description is given that the student debt loan impacts the whole world economy. Moreover, the tuition of colleges and universities got to increase a lot as compared to previous times which is a big burden for students. The public schools increased debts as quite compared to last year. The student considers college is a massive scam that gets just the money and some think it is just because of the government.
I select this video because I am a student as well and I understand that increasing the fee of college every year is a burden for students. That is why I choose this video to explain it.

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In this video, the Emory university quad has 1100 bag packs of students who attempt suicide due to the burden of excessive student debt every year. In this video, they raise awareness about the issue of mental health and the impact of college student suicide. We make them believe that they are not alone. We all are with them and they do not need to lose hope. To stop suicide, the community should talk more about mental illness as openly they conversate about physical illness.
I choose this video because I think it gives you a theme of how a university goes through several suicides every year and parents loss their child.

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Video #3 Cancel student Debt helps the well off

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Video #3 Cancel student Debt helps the well off

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This video describes the Elizabeth Warren wants to cancel 95% of a student loan should be canceled. The idea is described that how much a student earns if the student in private, government college, and high school. Warren's words say that the tax might not be constitutional and the same wealth tax could be used to help pay for a whole and other progressive policy ideas. She wants to do is tax the wealthy to help the merely well off.
I choose this video because she is not at the side of successful people, she wants to upraise the rest of the people who are sufferings student debts.

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Elizabeth Warren's Plan To Cancel Student Debt Helps the Well-Off

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Video# 4 How to pay student debt loans faster

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Video# 4 How to pay student debt loans faster

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The video is about how would you pay your loans faster. The various methods are described in this video to pay loans faster. The first thing is you must know how much you owe, if you are unsure then contact the lenders. Secondly, you need to know how you can get the lowest interest rate possible. can also get some rate reduction from many lenders when you sign up for autopay. Moreover, refinancing gives you the flexibility to decide how you want to pay off your debts. The most crucial idea is to prepay to pay off your debts faster.
I selected this video as I think the lady described the ways in a
more convenient way.

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How to Pay Off Your Student Loan Debt Faster

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This image shows that the students get under the burden of student loans. One thing is always going in their mind is how to pay off their debts. That is why they do not concentrate on their study as well.

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