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See the Surprising Truth About How Students Are Spending Their Loans

- Beer or Textbooks? - THE RISING RATE OF FRIVOLOUS STUDENT LOAN SPENDING BILL WITH NATIONAL STUDENT LOAN DEBT INCREASING EVERY YEAR, COLLEGE STUDENTS ARE SPENDING THEIR MONEY ON MORE THAN JUST TEXTBOOKS According to a 2016 Student Loan Hero survey Students in 2017 are 2X as Likely to Spend Student Loan Money on Non-Educational Expenses than the Class of 2016 WHERE'S THE MONEY GOING? 41.3% 14.9% 12.8% 2.5% monthly bills, e.g., rent & cell phones clothing & other accessories restaurants & take-out drugs & alcohol Spending loan money on unnecessary things might not be illegal, but is it worth it? IN 2016 THE AVERAGE COLLEGE GRADUATE HAD OVER $37,000 OF STUDENT LOAN DEBT According to the 2014 National Student Financial Wellness Study Students are overburdened with financial concerns 70% 60% 50% 32% of college students report being stressed about their personal finances worry if they have enough money to pay for school are concerned about their month-to-month have neglected studies because of money problems expenses According to the 2014 National Student Financial Wellness Study Financial ignorance might be the biggest problem facing students 7% 59% say they have no idea when their loans will don't even know their yearly costs for school be paid off U.S. national student loan debt is $1.38 trillion! 20% 54% of loan holders of borrowers said don't know they did not calculate their their terms for loan repayment monthly payments when taking out loans A stagnant job market is leaving college grads with few opportunities to find high-paying jobs, which only increases the burden of loan debt According to the Economic Policy Institute on the graduating class of 2016 COLLEGE GRADUATES AREN'T GETTING MUCH HELP FROM THE JOB MARKET OR THE ECONOMY 12.6% Up from 9.6% in 2007 are underemployed or work fewer hours than they wish AVERAGE STARTING SALARY FOR COLLEGE GRADUATES IS DECLINING $54,304 $50,087 $52,353 $50,219 2000 2005 2010 2015 Though most federal loan borrowers are on a 10-year repayment track, it takes an average of 21 years to pay off student loan debt 21 BLOWING STUDENT LOANS ON NON-EDUCATIONAL EXPENSES COULD COME BACK TO BITE YOU A 10-year federal subsidized student loan with a 5% fixed interest rate, according to a 15-week semester/30-week school year FRIDAY NIGHT PIZZA ADDS UP Regular Price Price With Loan $15 X 120 weeks = $15 X 120 weeks x interest = $1,800.00 $2,291.02 $491.02 more than if yoU paid with non-loan money It's like you paid $19.09 for every $15 pizza MONTHLY BEER BUDGET BLOATS MORE THAN YOUR BELLY Regular Price Price With Loan $100 X 30 months = $100 X 30 months X interest = $3,000.00 $3,818.36 $818.36 in "extra curricular" student loan expenses YEARLY SPRING BREAK EXTRAVAGANZA ISN'T A DROP IN THE BUCKET Regular Price Price With Loan $1000 X 4 years 1,000 X 4 years X interest = $4,000.00 $5,091.14 $1,091.14 more than if you paid with non-loan money SO WHAT'S A HARD WORKING STUDENT GOTTA DO TO STAY OUT OF LOAN TROUBLE? Make a budget & stick to it 80OZE Find out what your total costs will be before taking out loans Make a monthly budget for your bills, booze, & "fun money" Download an app that helps keep track of your spending Make early payments while you're in school, which will save $$$ later in interest Only take out what you need You can take this back, sir! Thanks! ~30% of students with loans borrow the maximum amount possible Borrow less, if you need less Take out federal student loans, which typically have lower interest rates and more government repayment options Return loan money within ~30 days if you take out the max but borrowed too much Choose a payment plan that works for you Decide whether you want to pay off your loans early, on time, or extend your terms 24 Set up automatic payments, so you never miss a payment MY PAYMENT PLAN Consider income-driven repayment or deferment/forbearance you can't afford your monthly payments if Refinance your loans to lower your interest rates Make extra payments and make sure they are applied correctly to the principal to maximize interest savings Don't panic!-Consult an expert if you feel overwhelmed SPASE Ready to pay off your student loans? STUDENTLOANHERO.COM SOURCES Student Loan Hero DEVELOPED BY N NOWSOURCING

See the Surprising Truth About How Students Are Spending Their Loans

shared by StudentLoanHero on Mar 02
Even if you escaped college without student loans, you definitely know someone who has them. Student loan debt is quickly reaching crisis proportions in the United States. But how is that money being ...


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