Student loan debt is the second highest form of debt in America, second only to mortgage loans. In fact, a staggering 95% of total consumer debt lent over the last year was for student loans and car loans. America is a strong nation, but you cannot build a strong nation on theft and unpaid debt, so it is essential for US students to effectively deal with their student debt.
Why Students Are Seriously Struggling In North Carolina
These shocking statistics don’t translate well; there are over 43 million students in the US who collectively owe $1.41 trillion in debt– and it seems that the problem is particularly bad in North Carolina. A recent study found that North Carolina students are more likely to default on their student loans, which implies that many students in North Carolina are overwhelmed by their student debt. This is a cause for concern, as it means that more young adults in the state are entering the working world with crippling debt.
How To Deal With Your Student Debt
If you are a student and you are struggling to make your student loan payments, don’t worry. There are a few different programs and loan options out there that can make it easier for you to make your monthly repayments. While most students in North Carolina are on the standard 10 year repayment plan that is the default option for federal student loans, but many people struggle to manage this loan.
If you can relate to this, here are some other options that you can consider:
- A graduated repayment plan; this repayment plan starts out with lower monthly payments which will increase over time. This is ideal for students who know that they will be earning more money in the future.
- An extended repayment plan; this useful repayment plan means that you have 25 years to pay off your debt, significantly lowering your monthly repayments.
- A private student loan; there are lots of excellent private student loans that you can consider. These loans often come with low interest rates that are easy to manage, so they are easier to repay that federal loans. However it is important to maintain a budget with the loan so that you never miss a monthly payment.
- An income-based repayment plan; these repayment plans are specifically tailored for your monthly earnings, so it means your monthly repayments will be realistic and manageable.
- Companies are now beginning to offer student loan forgiveness schemes to students who are starting work in specific areas. Depending on what career path you have followed, you will find specific companies who offer loan forgiveness specific to your job. Some companies may offer teacher loan forgiveness and other companies will also offer this to the armed forces and public services too.
Student debt is a big problem in the US, but there are lots of ways for American students to clear their debt. It just takes commitment and focus – and a good budget.
Chrissy Hines
