The student news site of Seward County Community College

Crusader News

The student news site of Seward County Community College

Crusader News

The student news site of Seward County Community College

Crusader News

Crushed: Student loan debt at record high

“Student loan debt nationally topped $1 trillion in 2012, more than credit cards, car loans or any other type of consumer debt,” according to the Huffington Post. Filing bankruptcy might seem like a good solution out. What many don’t know is that student debt is not like any other debt, it cannot be discharged by filing for bankruptcy. There is no way to get out of the student loan debt short of dying. After high school graduation, a young adult’s next big choice to make is where to go to continue their educations. Many students dream of going to college and earning their degrees in their desired careers and seeking a higher education, means more job opportunities. Although sometimes getting a higher education means paying a big price. Many students who go to a college or university decide to apply student loans. Many different types of loans are available for college students. It makes it easy for students to get the money they need for their education, but will they be able to pay them back? Studies show that in 2007-08 nearly 50 percent of all students at four-year, for-profit schools have incurred some level of student loan debt. To add to the debt problem, earning a degree doesn’t promise a secure job. Most graduates think that by getting a higher education, they have a secure job, but most of the time that is not the case. In the past years, wages have been going down but the cost for college has been rising. According to the Associated Press, about 53.6 percent of bachelor degree-holders under the age of 25 last year were jobless or underemployed. The crucial part is that these student debts cannot be discharged through bankruptcy. In 2005 a reform law passed in which student loans could not be discharged in bankruptcy. As stated in the Huffington Post: 2.9 million Americans have private student loan debt, owing about $150 billion and representing 15 percent of all student debt. The reason why it’s so easy to get student loans is because no matter what the situation is the loaner will have to pay it back. Lenders don’t have to be careful about who they lend money to; they will get their money back. Just because the loan is non-refundable doesn’t mean the loaner can pay it back. At Seward College Community College, students get the opportunity to decide for student loans. Community college students won’t have the same expenses as many at big colleges or universities. Students at SCCC are advised by Financial Aid staff on how to handle a student loan. Whenever students enter SCCC, they are advised to go onto a website called studentloans.gov where there is a program called “exit counseling.” This program is designed to help students to stay on top of student loans. It will provide information on repayment, how it can jeopardize your credit, bankruptcy, and how in specific cases it can be discharged. Also, toward the time the student will graduate, they will send a brochure with information about the “exit counseling”, to make sure the student is well informed. Our Federal Aid does a great job to keep students on track and provide them with any answers to questions they may have about finance. Student loans can be avoided to many students. Being up to your eyeballs in debt doesn’t always have to be the case. Many SCCC/ATS students are familiar with FASFA. It’s a great opportunity for students to help pay for their college and it is based on the students own income and their households income. Students just have to research, fill out an application and hope to receive a letter of acceptance. Keep out of debt and search for ways to pay for college. Being in debt at a young age is not fun. So why try to get a student loan just because it’s easy to get. Apply for scholarships, join a group at college, fill out the FASFA, and do research for ways to pay for college. It might seem like a good idea in the long run but we think if it’s not necessary, don’t do it. Do research on ways to get money for your education or get a job that will help you while in school. Hopefully in the end, it’ll all be worth it.

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Crushed: Student loan debt at record high