Student Loan Debt Consolidation: By the Numbers

PAY NOW, SAVE LATER The Benefits of Paying Back Your Student Loans Early For most college students, debt is inevitable. More than 66% of all four-year students take out loans to finance their degrees, and most of them don't think much of it until the bill is due. Rather than putting off the repayment of these bills, students who choose to repay the loans sooner than later can save thousands - even tens of thousands - of dollars in interest. Graduating in debt The average graduate this year walked off the university stage this year DEBT RISING FOR COLLEGE GRADS Average student debt at graduation 25K- $22,900 in debt. 20K- This makes the class of 2011 the most indebted group of graduates yet. 15K- 10K- Average student debt is up 8% over last year, and 47% over a decade ago. WHY: The cost of tuition has been increasing an average of 5% each year. Added to the rising cost of gas, food, and other common expenses, students need more money to pay for classes and live comfortably while in college. OK- 1990 1995 2000 2005 2010 The Benefits of Quick Repayment The most important benefit to paying back student loans early is that it saves you money on interest. Stafford loans are the most common type of student loan. These are government loans that can be obtained regardless of financial need. The interest rate on an unsubsidized Stafford loan is a fixed 6.80%. LET'S EXAMINE Two scenarios to demonstrate the benefit of early repayment: An extended repayment plan typically spans 20 years. Using the average student debt total and the interest rate of typical Stafford loans, this is what you'll end up paying: 6.80% Thtal Amount Hepaid $22,900 $41,954.93 Interest Hate Tutal Interest $19,054.43 241 PAYMENTS / $174.80 per month But, if you can manage a slightly larger monthly payment, you can repay the debt in ten years and realize striking benefits: 6.80% Tatal Amount Repaid $22,900 Interest Hate $31,624.28 Total Interest $8,624.28 120 PAYMENTS / $263.53 per month Repaying your student loans in 10 years as opposed to 20 only raises your monthly payment by about $88, but saves you over $10,300 in interest. That's half the down payment on a modest mortgage. For those who can afford it, the choice is obvious. Additional Benefits BETTER CREDIT By repaying student loans quickly, you will reduce your debt to income ratio, and record a fully repaid loan on your credit history. 1356 1989 5122 5678 FREE UP INCOME Eliminating a monthly debt payment gives you more money to save and enjoy in your post- degree life. INCREASE YOUR DEGREE'S R.O.I. The more interest you pay toward your student loans, the more your degree ends up costing and the less of a return you achieve. If you pay your degree loan soon, you can more quickly begin realizing your degree's full R.O.I. Bankruptcy Reform In 2005, congress passed a bill that protects federal student loans from bankruptcy filings. This means that student loans absolutely must be repaid at some point. Not even filing for bankruptcy will forgive them. The best to repay these loans is to start as soon as possible and make a plan that eliminates them quickly. The longer you wait to pay, the more interest accumulates, and the bigger the eventual bill grows. RASMUSSEN COLLEGE Sources: http://blogs.wj.com//economica/2011/05/07/numberaltheweek dassof 2011-mostindebtedever/ http://www.inaid.org/loans/scripta/interest.cgi http://www.finaid.org/loans/ PAY NOW, SAVE LATER The Benefits of Paying Back Your Student Loans Early For most college students, debt is inevitable. More than 66% of all four-year students take out loans to finance their degrees, and most of them don't think much of it until the bill is due. Rather than putting off the repayment of these bills, students who choose to repay the loans sooner than later can save thousands - even tens of thousands - of dollars in interest. Graduating in debt The average graduate this year walked off the university stage this year DEBT RISING FOR COLLEGE GRADS Average student debt at graduation 25K- $22,900 in debt. 20K- This makes the class of 2011 the most indebted group of graduates yet. 15K- 10K- Average student debt is up 8% over last year, and 47% over a decade ago. WHY: The cost of tuition has been increasing an average of 5% each year. Added to the rising cost of gas, food, and other common expenses, students need more money to pay for classes and live comfortably while in college. OK- 1990 1995 2000 2005 2010 The Benefits of Quick Repayment The most important benefit to paying back student loans early is that it saves you money on interest. Stafford loans are the most common type of student loan. These are government loans that can be obtained regardless of financial need. The interest rate on an unsubsidized Stafford loan is a fixed 6.80%. LET'S EXAMINE Two scenarios to demonstrate the benefit of early repayment: An extended repayment plan typically spans 20 years. Using the average student debt total and the interest rate of typical Stafford loans, this is what you'll end up paying: 6.80% Thtal Amount Hepaid $22,900 $41,954.93 Interest Hate Tutal Interest $19,054.43 241 PAYMENTS / $174.80 per month But, if you can manage a slightly larger monthly payment, you can repay the debt in ten years and realize striking benefits: 6.80% Tatal Amount Repaid $22,900 Interest Hate $31,624.28 Total Interest $8,624.28 120 PAYMENTS / $263.53 per month Repaying your student loans in 10 years as opposed to 20 only raises your monthly payment by about $88, but saves you over $10,300 in interest. That's half the down payment on a modest mortgage. For those who can afford it, the choice is obvious. Additional Benefits BETTER CREDIT By repaying student loans quickly, you will reduce your debt to income ratio, and record a fully repaid loan on your credit history. 1356 1989 5122 5678 FREE UP INCOME Eliminating a monthly debt payment gives you more money to save and enjoy in your post- degree life. INCREASE YOUR DEGREE'S R.O.I. The more interest you pay toward your student loans, the more your degree ends up costing and the less of a return you achieve. If you pay your degree loan soon, you can more quickly begin realizing your degree's full R.O.I. Bankruptcy Reform In 2005, congress passed a bill that protects federal student loans from bankruptcy filings. This means that student loans absolutely must be repaid at some point. Not even filing for bankruptcy will forgive them. The best to repay these loans is to start as soon as possible and make a plan that eliminates them quickly. The longer you wait to pay, the more interest accumulates, and the bigger the eventual bill grows. RASMUSSEN COLLEGE Sources: http://blogs.wj.com//economica/2011/05/07/numberaltheweek dassof 2011-mostindebtedever/ http://www.inaid.org/loans/scripta/interest.cgi http://www.finaid.org/loans/ PAY NOW, SAVE LATER The Benefits of Paying Back Your Student Loans Early For most college students, debt is inevitable. More than 66% of all four-year students take out loans to finance their degrees, and most of them don't think much of it until the bill is due. Rather than putting off the repayment of these bills, students who choose to repay the loans sooner than later can save thousands - even tens of thousands - of dollars in interest. Graduating in debt The average graduate this year walked off the university stage this year DEBT RISING FOR COLLEGE GRADS Average student debt at graduation 25K- $22,900 in debt. 20K- This makes the class of 2011 the most indebted group of graduates yet. 15K- 10K- Average student debt is up 8% over last year, and 47% over a decade ago. WHY: The cost of tuition has been increasing an average of 5% each year. Added to the rising cost of gas, food, and other common expenses, students need more money to pay for classes and live comfortably while in college. OK- 1990 1995 2000 2005 2010 The Benefits of Quick Repayment The most important benefit to paying back student loans early is that it saves you money on interest. Stafford loans are the most common type of student loan. These are government loans that can be obtained regardless of financial need. The interest rate on an unsubsidized Stafford loan is a fixed 6.80%. LET'S EXAMINE Two scenarios to demonstrate the benefit of early repayment: An extended repayment plan typically spans 20 years. Using the average student debt total and the interest rate of typical Stafford loans, this is what you'll end up paying: 6.80% Thtal Amount Hepaid $22,900 $41,954.93 Interest Hate Tutal Interest $19,054.43 241 PAYMENTS / $174.80 per month But, if you can manage a slightly larger monthly payment, you can repay the debt in ten years and realize striking benefits: 6.80% Tatal Amount Repaid $22,900 Interest Hate $31,624.28 Total Interest $8,624.28 120 PAYMENTS / $263.53 per month Repaying your student loans in 10 years as opposed to 20 only raises your monthly payment by about $88, but saves you over $10,300 in interest. That's half the down payment on a modest mortgage. For those who can afford it, the choice is obvious. Additional Benefits BETTER CREDIT By repaying student loans quickly, you will reduce your debt to income ratio, and record a fully repaid loan on your credit history. 1356 1989 5122 5678 FREE UP INCOME Eliminating a monthly debt payment gives you more money to save and enjoy in your post- degree life. INCREASE YOUR DEGREE'S R.O.I. The more interest you pay toward your student loans, the more your degree ends up costing and the less of a return you achieve. If you pay your degree loan soon, you can more quickly begin realizing your degree's full R.O.I. Bankruptcy Reform In 2005, congress passed a bill that protects federal student loans from bankruptcy filings. This means that student loans absolutely must be repaid at some point. Not even filing for bankruptcy will forgive them. The best to repay these loans is to start as soon as possible and make a plan that eliminates them quickly. The longer you wait to pay, the more interest accumulates, and the bigger the eventual bill grows. RASMUSSEN COLLEGE Sources: http://blogs.wj.com//economica/2011/05/07/numberaltheweek dassof 2011-mostindebtedever/ http://www.inaid.org/loans/scripta/interest.cgi http://www.finaid.org/loans/ PAY NOW, SAVE LATER The Benefits of Paying Back Your Student Loans Early For most college students, debt is inevitable. More than 66% of all four-year students take out loans to finance their degrees, and most of them don't think much of it until the bill is due. Rather than putting off the repayment of these bills, students who choose to repay the loans sooner than later can save thousands - even tens of thousands - of dollars in interest. Graduating in debt The average graduate this year walked off the university stage this year DEBT RISING FOR COLLEGE GRADS Average student debt at graduation 25K- $22,900 in debt. 20K- This makes the class of 2011 the most indebted group of graduates yet. 15K- 10K- Average student debt is up 8% over last year, and 47% over a decade ago. WHY: The cost of tuition has been increasing an average of 5% each year. Added to the rising cost of gas, food, and other common expenses, students need more money to pay for classes and live comfortably while in college. OK- 1990 1995 2000 2005 2010 The Benefits of Quick Repayment The most important benefit to paying back student loans early is that it saves you money on interest. Stafford loans are the most common type of student loan. These are government loans that can be obtained regardless of financial need. The interest rate on an unsubsidized Stafford loan is a fixed 6.80%. LET'S EXAMINE Two scenarios to demonstrate the benefit of early repayment: An extended repayment plan typically spans 20 years. Using the average student debt total and the interest rate of typical Stafford loans, this is what you'll end up paying: 6.80% Thtal Amount Hepaid $22,900 $41,954.93 Interest Hate Tutal Interest $19,054.43 241 PAYMENTS / $174.80 per month But, if you can manage a slightly larger monthly payment, you can repay the debt in ten years and realize striking benefits: 6.80% Tatal Amount Repaid $22,900 Interest Hate $31,624.28 Total Interest $8,624.28 120 PAYMENTS / $263.53 per month Repaying your student loans in 10 years as opposed to 20 only raises your monthly payment by about $88, but saves you over $10,300 in interest. That's half the down payment on a modest mortgage. For those who can afford it, the choice is obvious. Additional Benefits BETTER CREDIT By repaying student loans quickly, you will reduce your debt to income ratio, and record a fully repaid loan on your credit history. 1356 1989 5122 5678 FREE UP INCOME Eliminating a monthly debt payment gives you more money to save and enjoy in your post- degree life. INCREASE YOUR DEGREE'S R.O.I. The more interest you pay toward your student loans, the more your degree ends up costing and the less of a return you achieve. If you pay your degree loan soon, you can more quickly begin realizing your degree's full R.O.I. Bankruptcy Reform In 2005, congress passed a bill that protects federal student loans from bankruptcy filings. This means that student loans absolutely must be repaid at some point. Not even filing for bankruptcy will forgive them. The best to repay these loans is to start as soon as possible and make a plan that eliminates them quickly. The longer you wait to pay, the more interest accumulates, and the bigger the eventual bill grows. RASMUSSEN COLLEGE Sources: http://blogs.wj.com//economica/2011/05/07/numberaltheweek dassof 2011-mostindebtedever/ http://www.inaid.org/loans/scripta/interest.cgi http://www.finaid.org/loans/ PAY NOW, SAVE LATER The Benefits of Paying Back Your Student Loans Early For most college students, debt is inevitable. More than 66% of all four-year students take out loans to finance their degrees, and most of them don't think much of it until the bill is due. Rather than putting off the repayment of these bills, students who choose to repay the loans sooner than later can save thousands - even tens of thousands - of dollars in interest. Graduating in debt The average graduate this year walked off the university stage this year DEBT RISING FOR COLLEGE GRADS Average student debt at graduation 25K- $22,900 in debt. 20K- This makes the class of 2011 the most indebted group of graduates yet. 15K- 10K- Average student debt is up 8% over last year, and 47% over a decade ago. WHY: The cost of tuition has been increasing an average of 5% each year. Added to the rising cost of gas, food, and other common expenses, students need more money to pay for classes and live comfortably while in college. OK- 1990 1995 2000 2005 2010 The Benefits of Quick Repayment The most important benefit to paying back student loans early is that it saves you money on interest. Stafford loans are the most common type of student loan. These are government loans that can be obtained regardless of financial need. The interest rate on an unsubsidized Stafford loan is a fixed 6.80%. LET'S EXAMINE Two scenarios to demonstrate the benefit of early repayment: An extended repayment plan typically spans 20 years. Using the average student debt total and the interest rate of typical Stafford loans, this is what you'll end up paying: 6.80% Thtal Amount Hepaid $22,900 $41,954.93 Interest Hate Tutal Interest $19,054.43 241 PAYMENTS / $174.80 per month But, if you can manage a slightly larger monthly payment, you can repay the debt in ten years and realize striking benefits: 6.80% Tatal Amount Repaid $22,900 Interest Hate $31,624.28 Total Interest $8,624.28 120 PAYMENTS / $263.53 per month Repaying your student loans in 10 years as opposed to 20 only raises your monthly payment by about $88, but saves you over $10,300 in interest. That's half the down payment on a modest mortgage. For those who can afford it, the choice is obvious. Additional Benefits BETTER CREDIT By repaying student loans quickly, you will reduce your debt to income ratio, and record a fully repaid loan on your credit history. 1356 1989 5122 5678 FREE UP INCOME Eliminating a monthly debt payment gives you more money to save and enjoy in your post- degree life. INCREASE YOUR DEGREE'S R.O.I. The more interest you pay toward your student loans, the more your degree ends up costing and the less of a return you achieve. If you pay your degree loan soon, you can more quickly begin realizing your degree's full R.O.I. Bankruptcy Reform In 2005, congress passed a bill that protects federal student loans from bankruptcy filings. This means that student loans absolutely must be repaid at some point. Not even filing for bankruptcy will forgive them. The best to repay these loans is to start as soon as possible and make a plan that eliminates them quickly. The longer you wait to pay, the more interest accumulates, and the bigger the eventual bill grows. RASMUSSEN COLLEGE Sources: http://blogs.wj.com//economica/2011/05/07/numberaltheweek dassof 2011-mostindebtedever/ http://www.inaid.org/loans/scripta/interest.cgi http://www.finaid.org/loans/ PAY NOW, SAVE LATER The Benefits of Paying Back Your Student Loans Early For most college students, debt is inevitable. More than 66% of all four-year students take out loans to finance their degrees, and most of them don't think much of it until the bill is due. Rather than putting off the repayment of these bills, students who choose to repay the loans sooner than later can save thousands - even tens of thousands - of dollars in interest. Graduating in debt The average graduate this year walked off the university stage this year DEBT RISING FOR COLLEGE GRADS Average student debt at graduation 25K- $22,900 in debt. 20K- This makes the class of 2011 the most indebted group of graduates yet. 15K- 10K- Average student debt is up 8% over last year, and 47% over a decade ago. WHY: The cost of tuition has been increasing an average of 5% each year. Added to the rising cost of gas, food, and other common expenses, students need more money to pay for classes and live comfortably while in college. OK- 1990 1995 2000 2005 2010 The Benefits of Quick Repayment The most important benefit to paying back student loans early is that it saves you money on interest. Stafford loans are the most common type of student loan. These are government loans that can be obtained regardless of financial need. The interest rate on an unsubsidized Stafford loan is a fixed 6.80%. LET'S EXAMINE Two scenarios to demonstrate the benefit of early repayment: An extended repayment plan typically spans 20 years. Using the average student debt total and the interest rate of typical Stafford loans, this is what you'll end up paying: 6.80% Thtal Amount Hepaid $22,900 $41,954.93 Interest Hate Tutal Interest $19,054.43 241 PAYMENTS / $174.80 per month But, if you can manage a slightly larger monthly payment, you can repay the debt in ten years and realize striking benefits: 6.80% Tatal Amount Repaid $22,900 Interest Hate $31,624.28 Total Interest $8,624.28 120 PAYMENTS / $263.53 per month Repaying your student loans in 10 years as opposed to 20 only raises your monthly payment by about $88, but saves you over $10,300 in interest. That's half the down payment on a modest mortgage. For those who can afford it, the choice is obvious. Additional Benefits BETTER CREDIT By repaying student loans quickly, you will reduce your debt to income ratio, and record a fully repaid loan on your credit history. 1356 1989 5122 5678 FREE UP INCOME Eliminating a monthly debt payment gives you more money to save and enjoy in your post- degree life. INCREASE YOUR DEGREE'S R.O.I. The more interest you pay toward your student loans, the more your degree ends up costing and the less of a return you achieve. If you pay your degree loan soon, you can more quickly begin realizing your degree's full R.O.I. Bankruptcy Reform In 2005, congress passed a bill that protects federal student loans from bankruptcy filings. This means that student loans absolutely must be repaid at some point. Not even filing for bankruptcy will forgive them. The best to repay these loans is to start as soon as possible and make a plan that eliminates them quickly. The longer you wait to pay, the more interest accumulates, and the bigger the eventual bill grows. RASMUSSEN COLLEGE Sources: http://blogs.wj.com//economica/2011/05/07/numberaltheweek dassof 2011-mostindebtedever/ http://www.inaid.org/loans/scripta/interest.cgi http://www.finaid.org/loans/