4 Things You Need to Know About Student Loan Debt

Guest post: Taylor Tomita

As you traverse through the college world, there are a plethora of challenges you may face along the way. Worrying about surviving on a miniscule student income, balancing work and school, and finding time to study are a few of the most common college concerns, but there is one issue that nearly every student faces throughout their time in college: debt.

Student loan debt is a rising issue. In the US, the student debt crisis is a very real and growing issue that is affecting the lives of many college students. Thankfully, being aware of this issue and learning how to combat student loan debt before it affects you can greatly change the outcome of your college experience for the better. I wanted to outline four key things you need to know about student debt in today’s world.

1. There are scholarships to help 

Of course, everyone is well aware of the existence of scholarships. However, there are many misconceptions surrounding scholarships that cause many students to neglect the idea of applying entirely. In fact, many students are not fully aware of the opportunities they can qualify for when it comes to scholarships. Many students are highly focused on academic-based scholarships, but there are also scholarships available for just about any interest you can think of.

Pursing scholarship opportunities can greatly reduce anxieties about student debt as you make your way through college, since they can greatly reduce, if not eliminate, the overall cost of tuition. It is important to do plenty of research when it comes to scholarships, and apply to all the schemes you’re eligible for.

2. You can consolidate your college debts

At first glance, student loan debts can be rather overwhelming. As a student pursues a degree, there are a number of separate loans s/he may need to acquire to complete the necessary courses each year. Each of these subsidized or unsubsidized loans are equipped with their own interest rates and billing statements, which can leave a student with a confusing pile of bills each month.

This is where consolidation can come in handy. This allows a current or former student the ability to compile all of their college debts into one loan. Many companies offer the option to consolidate and refinance all at once, giving you an overall lower interest rate on your loans and saving you money over time.

3. Not all colleges cost the same 

Of course, many of us would love the opportunity to be accepted into an Ivy League school, or another famous university. However, it is important to research exactly what you will need to complete your major. There are a vast amount of “lesser-known” colleges throughout the world that offer the exact same courses, but at a significantly lower cost.

In the US, community colleges offer the ability to transfer credits to a four-year university. This means you can complete a large amount of your course credits at a lower-cost college, and then transfer these credits over to a university to complete the additional course you need to get a full degree. However, it is vital to ensure the credits you are completing can be transferred before you make this decision. Thankfully, there are lots of ways to find what credits are transferrable.

4. College debt shouldn’t hold you back

This is an important thing to keep in mind. Many students are completely turned away from college due to student loan horror stories. However, most students agree that the costs are worth it. Receiving a college degree can open a variety of windows throughout your life. Acquiring a degree allows individuals to pursue many career and life opportunities that may have not been available otherwise.

In summary… 

Student loan debt can be frightening, and this is definitely an issue to be taken seriously. However, with a bit of knowledge, anxieties about college debt can be alleviated. It is important to do your research before, during, and after your time at college. Thank you for reading! Let’s continue the conversation in the comments below. What is something you have learned that you wish you had known before starting college?

Taylor Tomita is a creative writer based in Boise, Idaho, US. When he’s not writing you can find him traveling with his band or searching the town for good pizza.