Borrowing for college is more today than ever before. With the student loan lending industry reaching $1 trillion in extended funds, millions of people will spend the next ten or more years paying back the thousands of dollars they borrowed to fund their education. In the event the job market isn’t a lucrative as hoped or financial hardship strike, many of these people will face the harsh reality of debt default.
Borrowing, Paying and Saving
Most people don’t have the loan repayment on their minds, let alone the importance of saving. Money management skills are like any other behavior and require practice to become a good habit. If you are borrowing to fund your college education, prioritize a savings account dedicated just for use of student loan repayments after you graduate.
You may be granted a small grace period after graduating, but that doesn’t mean you can’t start paying right away. Take advantage of the funds you do have while you have them and put them into an account to help support your monthly debt payment requirements, or start paying down your balance as you borrow. Not only does this show your lender your responsible borrowing, but lenders are far more likely to offer payment assistance down the road if hard times strike unexpectedly.
Student loan lawyers all over the country are working to provide relief for graduates who borrowed too much, or fell into hard times and can’t repay. If you or someone you know is struggling to repay their student loans, ask for help. There are debt relief options to help you get back on track.