College Debt Management After Canceling Loan Forgiveness

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While the coronavirus pandemic has brought some student loan forgiveness for some, reality will soon come as many students struggle to manage college debt. This takes a toll on finances, and there are ways to recover and save money.

Graduation from high school and the joy of achievement are sometimes accompanied by awe about the future.

“Unfortunately, the student debt crisis is actively deterring them from doing this, preventing them from creating long-term wealth, but also preventing them from spending money on what they like,” he said. Tory Dunlap, money instructor

Dunlap said the pandemic is forcing college students to act financially and balance.

“Unfortunately, a lot of people who ended up battling the pandemic probably fought before, and so they couldn’t pay off their student loans,” she said. “Perhaps they were unable to take advantage of this time. This is a bigger problem with the student debt crisis – $ 1.7 trillion for recent graduates. “

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That’s an average payment of almost $ 400 a month, she says, which is why many spend the summer trying to figure out how to meet their financial goals.

“It depends on the individual, private versus public schools,” Dunlap said. “Unfortunately, women bear the brunt of student debt. Women account for two-thirds of the student debt in the United States, the biggest systemic problem in education and accessibility. ”

She suggests spending money prudently and managing money responsibly, since interest can be charged quickly.

“In addition to the monthly payment, you want to send any additional money towards the principal,” Dunlap said. “This is the original amount of money they took as part of your student loan. Putting in any extra money you have, even if it’s $ 50, channel it to the principal — it will help you get out of debt much faster. ”

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