Michaela Go
English 11000
Prof. Creaney
11/20/19
Student Debt: Avoiding It and Learning More
Student debt has become a crisis that continues to trouble many students in our generation. Every individual fear putting themselves into debt for they know the obstacles that come with it. Student debt may require some to sacrifice their own desires in order to pay off what they owe. With institutions raising their costs, it’s almost impossible to not consider taking out loans. Even with rising tuitions, how can a student avoid falling into major debt even if they borrow student loans?
Before we can say what a student can do to avoid student debt, we must first identify why students fall into debt in the first place. Why are students so susceptible to falling into debt? Walter Myers, the writer of “The effect of student loans on your future: What to know before applying for financial aid,” stated that students aren’t given enough support when it comes to learning about financial aid. Myers wrote in this article that “one in five borrowers doesn’t understand the term of his loans”, meaning that students borrow a big amount of money from the provider without knowing what’s on paper. For example, some students were unsure of what their monthly payment would be. In a situation like this, a student is already digging a hole for themselves. It seems that in the moment students worry only about how much money they need to spend, and put aside the fact that someday they’ll need to pay it all back. This is a very dangerous way to think and it can lead a student to face debt after they have graduated. Students are not given enough information or education on financial aid. They get the basic information from their school counselors and advisors but they never get too deep into it. If a student does not put in time to look into financial aid, it will cause student debt to impede on their “path to prosperity” (Myers).
Now that we went over a root problem behind student debt we can now answer our initial question. How can a student avoid falling into major debt even if they borrow student loans? Students can research the kinds of aid that are available to them. Yes, loans are a huge help to pay your tuition but there is more to financial aid than just taking out loans. There are many different types of financial aid like grants, scholarships, tax benefits, and work-study opportunities. A student can find out about the different types of aid in a click of a button. For example, FAFSA has a section on their website dedicated to educating others on the types of aid they can obtain. FAFSA offers aid to eligible students every year and also offers assistance in loans. Students can also find that there are programs to help them save money as they go on to pursue a college education. For instance, ASAP is a program that assists students coming from low income families. ASAP gives students from low-income families an opportunity to attend a CUNY school of their choice. This information can be easily found by a student if they are doing their research. If their student loan providers aren’t giving them sufficient information, the student must take it upon themselves to find the answers to their questions. They cannot find themselves lazy in finding the information that they need. Researching about the different types of financial aid can increase the amount of options a student has.
It is crucial that a student knows the facts of their loans, and stays knowledgeable on their providers. First and foremost, a student must know what they owe. According to an article written by New York Life called “Six Tips to Avoid Being Young and in Debt” it suggests that students list down all the possible loans and interest rates. A student should pick the best “deal” that they can find before just choosing any random provider. Every student has options to choose from, it’s just a matter if they are looking for them or not. A student must be able to know that they can trust their provider. There are predatory providers whose goal is to make the borrower pay more than they’ve asked for. To identify whether your provider is predatory or not is a skill every student should have. Jill Rayner wrote “Tackling Unfair College Student Loan Practices” to educate others in identifying predatory providers. Rayner tells the reader how they can identify providers that are untrustworthy. For example, predatory providers have abnormally high interest rates, unfixed rates, quick timelines and additional costs. Rayner provided great advice to students when it comes to finding a reliable provider. With financial aid, there can be words or terms that we may not understand. To understand their loans and avoid further confusion a student should be up to date in terminology involved with loans. Knowing the different terminology can increase their knowledge in financial aid. College Board has a page on their website that is dedicated to defining terms dealing with loans, FAFSA, scholarships, and more. The page is called “Financial Aid Glossary: Learn the Lingo” and it can be extremely helpful when talking to different providers about different options. Again, students have access to this information through a click of a button. One google search, and they have a world of information in front of them. They are able to find the answers to their questions, if they put in the time to research and educate themselves on loans and providers.
Student loans do not have to be as scary as everyone thinks they are. Many fall into debt because they didn’t understand their loans and its conditions. Students were left clueless on what to pay monthly and focused only on borrowing the money. By focusing on only the borrowing aspect, they forget to consider how they will pay for it later. Their debt and troubles can be avoided if they simply do their research. Loans are beneficial but they are not the only option. A student can look into the different types of aid that they can obtain assistance from. They can apply for scholarships, sign up for programs like ASAP to help them pay for their tuition. Students can find a trustworthy loan provider through the research they do. Avoiding a predatory provider is so crucial when it comes to avoiding falling into student debt. Predatory providers only have their benefits in mind and will make money at the expense of the one borrowing. A student can avoid the troubles they fear with student debt by looking for the information they need. If they have a question, research it. If they want more options, research it. If they want to save, research it. We are in a day and age where sources are accessible to us in a click of a button. Students must use this to their advantage to help them avoid falling into major debt.
Work Cited:
III, Walter Myers. “The Effect of Student Loans on Your Future: What to Know before Applying for Financial Aid.” NBCNews.com, NBCUniversal News Group, 28 Jan. 2019, www.nbcnews.com/think/opinion/applying-financial-aid-student-loans-are-mortgage-your-future-no-ncna944971.
Life, New York. “Six Tips on How to Avoid Debt: New York Life.” Six Tips on How to Avoid Debt | New York Life, www.newyorklife.com/articles/avoid-being-young-and-in-debt.
“Pay for College: Financial Aid Glossary.” Pay for College | Financial Aid Glossary, bigfuture.collegeboard.org/pay-for-college/financial-aid-101/financial-aid-glossary-learn-the-lingo.
Rayner, Jill. “How to Avoid Unfair College Student Loan Practices .” AffordableCollegesOnline.org, AffordableCollegesOnline.org, 20 Nov. 2019, www.affordablecollegesonline.org/college-resource-center/unfair-college-loan-practices/.
Second Genre: Advertisement
This advertisement is made to encourage students to do their research and explore financial aid in order to avoid stressing about debt after they graduate.
