Putting Student Loans in Perspective

Always making the news, the increasing cost of college and student loans are the focus of an article by Michelle Singletary of the Washington Post.

I like how the current statistics were laid out. Here they are at a glance:

Costs

• Average Cost of one year at a public college: $12,796
• Average Cost of one year at a private college: $30,367

Federal Funding

• Maximum federal Stafford Loan amount you can get for all undergraduate study: $23,000
• Current interest rate of federal Stafford Loans: 6.8%

Without generous scholarships and grants, getting into big debt will be necessary. If you are taking out very large loans, make sure you choose a high paying profession or you may be setting yourself up for a life of debt and a high chance of bankruptcy..which will ruin your credit.

Here are some other options:

• Alternative private loans - current interest rates: around 7.6% and 9%
• Have a parent help using the federal PLUS Loans - 8.5%
• Get a job while in school
• Stay at home and commute to a community college for the first couple years

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