Student Debt

by Grace G.

Hey there, I’m Grace and today we are going to be talking about student debt and how to minimize it. Student debt has always been a major problem in today's world and is only growing. Americans owe over $1.71 trillion in student loan debt, spread out among about 44.7 million borrowers which is about $739 billion more than the total U.S. credit card debt. This is insane, millions of people around the world owe lots of money. This past year and going into this year, has also been known to be the worst two years of student debt because of covid. Things in life such as covid pop up, this is why it is always important to be prepared and know how to minimize student debt or just debt in general. So I am going to inform you with some helpful ways to avoid student debt from happening to you. 

One of the many things you can do to minimize student debt is to save as much as possible before it comes time for college, so you can afford living. Some things to keep in mind while saving is whenever you borrow money or apply for a credit card, you must pay attention to the terms and interest you will accrue when not paid in a timely manner. Every dollar you save is a dollar less you’ll have to borrow. It is cheaper to save than to borrow. For example, saving $100 a month for 10 years at 6.8% interest comes to $17,216. However, borrowing instead of saving, will require payments of $198 a month for 10 years at 6.8% interest, almost twice as much. So looking ahead and saving money would be a smart option, so you don’t have to get a student loan and borrow money. Even doing things such as putting $5 in your savings weekly early on, will help you save tons of money and most importantly help you stay away from student debt. 

Another helpful source of saving yourself from student debt is to take full advantage of free money sources, such as grants and scholarships, before ever turning to student loans. You would be surprised how many different opportunities for scholarships that you could get. All you need to do is apply for scholarships and put yourself out there because you never know. Grants or scholarships can help take so much off your load financially in the long run. So make sure you are checking out your options before going into college or thinking about having to get a student loan.

Something that is good to start at a young age not only to keep you from having student debt but also to learn real life skills for your future is getting a job. Working part-time during the school term and full-time during the summer to earn money is a great way to save up for college. As you know money is not just gonna grow on trees, so it is an excellent idea to get a job right when you start off with high school. High school students can earn up to about $6,000 a year without affecting their eligibility for need-based financial aid. Even a little money can go a long way so it sure wouldn’t hurt to get a job before it's time to go to college.

In all, you need to be always thinking ahead when it comes to things like student debt. Savings money, applying for scholarships or grants, and getting at an early age, all the above will be extremely helpful for minimizing student debt. You do not want to end up having a student loan as borrowing money will only start to pile up and you could be paying it off for years and years still after college. Do all that you can to save up and avoid student debt otherwise you will look back and wish you were more prepared! 

Works Cited

Kirkham, Elyssa. “[Survey] Life After Debt: What Paying Off Student Loans Is Really Like.” Student Loan Hero, 12 Mar. 2020, studentloanhero.com/featured/life-debt-survey-reveals-paying-student-loans-really/.

Network, Edvisors. “How to Minimize Student Loan Debt.” Edvisors, 1 Mar. 2021, www.edvisors.com/student-loans/minimize-debt/.

“Project on Student Debt.” The Institute for College Access & Success, ticas.org/our-work/student-debt/.

“U.S. Student Loan Debt Statistics for 2021.” Student Loan Hero, 27 Jan. 2021, studentloanhero.com/student-loan-debt-statistics/.