221 National Financial Literacy Month - Day 14 - Student Loan Debt & You

The spring of the year is the time frame when high school students and their families work to see what college admits them for attendance. Students apply for the Free Application for Federal Student Aid (FAFSA) form in the United States to determine their eligibility for student financial aid. 

Once the FAFSA form has been processed, students receive a synopsis of the financial aid that is available to them.in support of attending a post-secondary educational institution in the United States. This funding is used to assist in covering the many costs incurred in the pursuit of post-secondary education. Financial aid is available from federal and state governments, educational institutions, and private organizations. It can be awarded in the form of grants, loans, work-study, and scholarships. 

Facts: 

• 40 million Americans have at least one outstanding student loan.
• Americans owe more than $1.75 trillion in student loans, making up 6 percent of the total national debt.
• The average borrower graduates from college owing $39,300.

In addition to signing the promissory note for student loans, take the time to examine exactly when your first payment will be due and how much it will be. When the time to start paying comes, you have options for repayment. The Federal government offers longer-term payment plans as well as graduated repayment options which allow you to bulk up your income and get some job experience under your belt before making larger monthly payments.

During certain seasons of life, your income may be severely limited, and affording student loan payments just isn’t possible. Fortunately, loan servicers are aware that situations like this occur and have precautions in place to help students get through these difficult times. The bottom line for students with student loan debt is to work closely with the loan servicers and work out terms for repayment, transparency is everything.

Learn about Paul Lawrence Vann's virtual Financial Fitness course, it is being offered at a 50% discount throughout the month of April, National Financial Literacy Month, here is the link:  https://bit.ly/3dbperG