The first step you should undertake is to conduct research about the various careers and the potential possibilities of growth.
For this purpose, you need to get in touch with your high school career counselor. You can also find about shadowing with a professional. It could be anyone, a dentist, physician, employer, or corporate employee. The main objective is to explore the various career interest and see whether it matches to your talent and skill or not.
This will also allow you to check the starting salary, whether it is on the decline mode, or it is a booming career.
Conduct a review about salaries
Conducting background research about salaries will give you an idea about how much loan you can pay after your college. The main objective is that you should not borrow more than your starting salary while you are in your first year of college. This will help you to repay the student loan comfortably after your pass out.
For example, if you intend to earn $50,000 after your graduation, your loan should not exceed above $50,000.
Finalize how much your Parents can pay through Loans
Student loan debt differs from family to family and it depends upon how much a parent would be able to pay from his pocket. From a parenting perspective, every parent should analyze how the student loan debt will affect their life. This is the reason that every parent should discuss these with their financial planner. You can even talk with a credit counselor in your local credit union.
How to Solve the Student Debt Crisis?
Student Loan Fairness Act
- The Student Loan Fairness Act would help many borrowing parents to pay fewer amounts than currently they are paying right now. However, these borrowing rates would also apply to Federal Subsidized Stafford Loans.
- The loan debt proposal Act will also help the parent with the 10/10 repayment plans that will enable the students to limit their student loans to 10% of discretionary income. However, this plan is offered simultaneously with Income-Based Repayment schemes. Moreover, the parents can also capitalize the loan with an interest of 10% on the loan amount.
- This Student Loan Fairness Act also enables many parents to convert these loans into federal loans, upon qualification. This option will also allow them to talk with their borrowers along offering educational programs in line with federal programs.
Free College
- Reduction of interests on student loans
- No cost at public universities and colleges
- Helping the students to refinance their loans at current interest rates
- Low-income students should be offered more room to use financial aid to cover up various costs such as accommodation, books, board, and other fees.
Bring up more access to federal student loans
Since many schools do not get involved with the federal loan program, therefore the number of community college students cannot get a federal loan. When these students are failing to access federal loans, they start to take up private loans at a higher interest rate. This mistake leads them to borrow loans at a limited budget and limited salary.
How to go back to School with Student Loan Debt?
- You need to call your student loan lender and talk with them by telling them that you would like to go back to school. Also, tell them that you would also like to get the loan by default.
- Most of the time, when you are applying for a loan out of default you need to make all your payments cleared consistently for a certain period.
- When the loan repayments are in excellent condition, seek alternative arrangements with your lender. This will help you to get back on track and complete your education.
- You need to check on your yearly limits when you are borrowing under Federal programs. There is no chance that you can either breach it or even reach it.
- If you are applying for Federal loans, you need to fill out the FAFSA forms.
- You can still get private student loans, then you need to qualify financially, or either you need to have co-signors for approval. Various schools offer aid and grants for you to apply.