Video Post: Think About Debt Before Graduation by Christina Barks* (Guest Contributor)

VIDEO: http://www.cbsnews.com/video/watch/?id=7423408n&tag=strip

            In this economy you have to get a higher education greatly increases your chances of getting a good job. However, college is expensive and many students (or their parents) cannot pay for all of it out of pocket or through scholarships. The reality is that most students obtain student loans, and subsequently go into debt. This is a hard concept for many college students to grasp. Many students don’t deal with repaying debt it until after they graduate from college. However, the delay  may cause some issues once they graduate, being suddenly obligated to pay back the debt plus all the interest.

Quick Thought:

            As noted in the video, if you don’t think about your debt before you graduate, then you might not be prepared for your monthly loan payments. One thing that the video talked about was finding a school that is in your budget. If you are currently going to a school that is too expensive, it might be wise to transfer to a cheaper school with your major. Another thing the video mentioned is paying off student debt while still in school. This is worth looking into so that you can cut down on some of the debt after school.

            With the unemployment rate rising it is important to know how much debt you are getting into and to have a plan to pay it off after school. If you have student loans, or are planning on getting student loans, you should look at your options for paying them back. There are many options to choose from, such as paying down the interest while in school, paying a set rate after graduation, and paying a rate based on income. Figure out what works best for you, and stay focused so that you can get through your schooling as quick as possible and with as little debt as possible. The sooner you pay it off the less interest added and the less money you have to pay in the long run.

READERS, what are do you think?

·         How do you plan on paying for college or paying off your debt after college?

·         Do you think that a college education is worth going into debt?

*Christina Barks is an undergraduate student with UK Department of Family Sciences

Reference

Quijano, E. (Performer). (2012). U.s. student debt over $1 trillion. [Web Video]. Retrieved from http://www.cbsnews.com/video/watch/?id=7423408n&tag=strip.