Student loans are one of the many hotly debated issues of the month, with many in the Occupy Wall Street movement young students facing huge bills. A majority of students have to pay the growing tuition costs just to find an entry-level position in the already competitive job market. This means that they are going deeper in debt, with only some graduates landing a job that pays enough to cover their impending student loan bills. Luckily, this is an issue that is on the nation’s radar, with Barack Obama promising to identify new means of lowering tuition and student loan bills. A college student with a good credit score has a better chance of coming out of college unscathed, but there are also non-federal loan options and bad credit loan opportunities that students should explore.


It was recently reported that student loan debt is costing the US government $1,000,000,000! In fact, student debt has doubled in the last 5 years, while the number of students in college has remained the same and even gone down in some parts of the country.


Tuition costs for college students has also increased, with the average in-state tuition costing $7,600 and private school tuition costing as much as $27,000 per year (again, this is just the average). These high costs have caused college loans to be the 2nd largest source of household debt, which is a problem Obama is trying to solve by reducing the maximum payment required on federal student loans from 15% to 10%.


The government has also worked hard to limit the loans a student can take, based on their household status. Students who are still the dependents of their parents are limited to $31,000 in federal loans whereas independent students can take up to $57,500 in student loans. Luckily, not too many students are gaming the system, as only 0.5% of all students have accumulated over $100,000 in college loans.


The bootstrapped student trying to rely on credit cards should think twice, since the national average APR is now 14.99%. For students seeking ways to pay for college, they should consider personal loans, scholarships, and grants. The government is going to be tightening the purse strings soon enough, as a $1,000,000,000 student debt is hard to carry with a country that is in so much debt to collectors as is.



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