Student Debt Analysis

666 Words2 Pages

Going to college usually includes a sum of debt to help pay for the tuition and college expenses a student might incur. In fact, in 2012 the average balance of loans for undergraduates was $25,900. (Johnston & Roten, p. 24, 2015) This can create a huge challenge for individuals as they exit college with such a huge amount of loans to repay. “Student loan debt rose by 328 percent from $241 million in 2003 to $1.08 trillion in 2013” (Johnston & Roten, p. 25, 2015). While financial aid is available, sometimes it can be confusing and the amount of debt can become unmanageable. This article focused on repayment plans for these high amounts of debt. With new repayment plans, students may find it easier to handle these debts. The two types of …show more content…

If an individual’s income is low enough, a zero payment may result using the IBR or PSLF program (Johnston & Roten, 2015). These zero payment periods do count as part of the 10 year repayment plan before loan forgiveness is granted. Both of these programs can be very beneficial for students with a high amount of student loans. With the new revisions to these plans, including basing repayment on income, can make student debt very manageable. These programs can encourage individuals to seek student loans, rather than private institution or credit card loans. I decided to focus on student loan debt management for this assignment, because this is something that I have in my personal life. In order for me to complete this master program, I had to take out a student loan. I have heard a lot of talk about the loan forgiveness plan, but have never been given any information about this. This article helped to clarify what is included and the requirements for the two different repayment options. These options both apply to me as I am a public service worker. I will use this information to help repay my student loan when it comes time to start paying after I graduate. Although I will need to look into these programs further, I feel that this article was very beneficial to my current

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