OPINION: We Should Learn About Student Debt, Don’t Ignore It | Notice
Student Debt: A concept all college students are familiar with, but usually don’t pay attention to after completing the Free Federal Student Assistance Application (FAFSA) each year. With student debt increasing exponentially for decades to a current total of $ 1.7 trillion, it has certainly become a crisis that we cannot ignore.
According to Forbes, there were 44.7 million student borrowers with student loan debt in 2020, and North Carolina is the 10th highest state for student debt. Therefore, it is fair to say that the majority of NC State students should be concerned with this issue. With student loans and debt in general being such a big issue in the university community, students should have a better understanding of these financial concepts before it becomes an even bigger issue in their future.
However, not all of us specialize in finance or economics with a focus on debt. This makes information on student loans highly dependent on the circumstances and knowledge of each student. Some may be first generation students or pay for their education without parental help. This can make it difficult to find an adult who can guide them through the loan repayment process.
Even if you have access to college graduates or parents who have experience handling student loans after graduation, the loan repayment process can still be quite intimidating and confusing. This often leads students to choose to defer or withhold their payments, resulting in additional interest accumulation over time that they will have to pay later.
Students also find themselves more in debt by turn to credit cards in order to make loan repayments or other purchases without a thorough knowledge of how they can lead to a bigger pile of bills.
Additionally, there is no official course offered at NC State for students to learn exactly how to manage their loans. There are many different ways to repay loans, such as income-based repayment plans; these adjust your monthly payments according to your income. However, with all of these different options, it can be difficult to know which plan is the best choice.
Many non-profit organizations offer loan postponement, cancellation or release after a number of years working for them. There are many loan forgiveness options for teachers, public service employees (especially in healthcare), and the military. Loan forgiveness is definitely something to consider when applying for a job after college.
For many, student loans are a concern in the future, whether after graduation or after graduate school. In order to help students manage their loans and eliminate the general lack of knowledge about debt, NC State should require a class on student debt for all freshmen who use loans or plan to do so at school. ‘university. This course could provide students with an opportunity to learn about all the different loan repayment and forgiveness options early in their college career and alleviate the stress of making a plan after graduation.
The class could also focus on debt in general, especially as many young students begin to use credit cards during their college years to build their credit scores. Another financial topic that not every student can handle is credit cards. This can cause students to have to manage even more debt on top of their student loan debt.
A compulsory class at NC State that focuses on the ins and outs of debt would only benefit students because they would be better prepared for a life of financial success without worrying about debt each month.