Written by Millionaire’s Digest Team Member: Rashida Carter
Founder & Owner of: The Randomness that is WE
Millionaire’s Digest Team, Contributor, Family & Life Writer
As i know all to well, student loans are taking over the lives of the majority of college students. Limiting what the can and can not borrow from banks upon graduation. The average amount of student debt is currently ranging from $35,000 to $50,000, and trust me, that’s on the low spectrum.
A lot of students who go to undergraduate school and then decide to further their education, have at the very minimum $80,000 to $100,000 in student debt. How are student expected to pay these monies off, when there is a likelihood that they will not obtain employment in their field of academia for at least 6 to 18 months after graduating (maybe longer).
Obama proposed a student loan forgiveness program for students who after making 20 years worth of payments will have the rest of their loans forgiven. Oh yea, now that only includes federal loans. So for the student who have both private and federal loans, your private loans will need to be paid in its entirety, no forgiveness there. Now, while i love President B. Obama, and i agree with the majority of what he has done for the country, this idea absolutely sucks. If you are anything like me, you cant get a bank loan for a house (co-op,condo,house) because you’re loans are entering repayment and based on your income and the other bills that you have and need to pay, to them it looks like you will not be able to afford everything *le sigh*.
However, though i am not the biggest fan of Hillary Clinton, she does have a pretty interesting proposal for student debt relief. Mrs. Clinton is proposing the option to refinance student loans to current percentage rates (i’m hoping those percentages will be considerably lower than the 6.8% that i know it is now). A revised income based repayment system the permits you to only pay 10% of your current income. Enrolling employers in the relief programs, allowing payroll deductions along with the tuition reimbursement that most employers offer now. Starting a business will also give you some forgiveness totaling $17,500. As well as being a member of AmeriCorps and providing the minimum of two years of service, will get your entire loan forgiven (doesn’t sound like a bad idea,huh). She also is creating an initiative for incoming college students as not to defer young kids from enrolling in college.
Secretary Clinton i hope you can live up to the promises you are making for college student with a mountain of debt, because i know we all can agree, that we don’t want to pay student loans for the rest of our lives. At the very least making it manageable will do a great deal for a lot of us, so people can stop taking about us being almost 30 still living with out parents, because we cant afford to pay rent and everything that comes with it, and pay off our student loans. I know the millennials are something special, but i think thats a bit too much to ask of us… dontcha think ?
Article Credits: Rashida Carter
Millionaire’s Digest Team, Contributor