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Student Loan Debt Soars

This is the time of the year when High School Seniors are busily applying to their dream schools.  Big brand names like Stanford.  Swarthmore.  Syracuse.

Getting accepted is only part of the problem.  What about trying to pay for the schools?

According to the NY Fed, student financial aid debt is soaring.   At $865 billion, it dwarfs national credit card debt of $694 billion.

In 2010, two thirds of the seniors graduated not only with a diploma but also an average of $25,250 in student loans.  That’s an increase of 5% from last year.

Mark Kantrowitz, publisher of FinAid advises students to save money by going after federal student loans because their interest rates are cheaper.n

Another way to deal with financial aid is to avoid taking out loans at all.

In working with clients, we determine if the client is brand shopping or value shopping or a little of both.  In applying to college, it’s good to have a healthy mix of reach, 50/50 and likely schools.  It’s also important to have a good mix of schools that will offer you money whether its merit aid or financial aid.

Going to college doesn’t have to be a uber costly experience unless you want it that way.

Juliet Giglio

Educational Consultant in Syracuse, New York

 

 

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