Move over credit cards – college debt is now the No. 1 source of consumer debt in America, according to data from the Federal Reserve Bank of New York.
Student loans account for more than $1 trillion in outstanding debt for U.S. consumers, surpassing what’s owed on credit cards
The College Conundrum
Still, higher education remains a boon to most graduates’ future prospects. Statistics show that those with a college degree enjoy lower unemployment rates, a better chance of having health insurance and job satisfaction, and higher lifetime earnings (nearly $20,000 per year higher according to the U.S. Census Bureau). So how can degree-seekers balance the cost and benefits? Very carefully.
- Consider limiting the total loan amount to no more than twice what you can expect to earn in your field as an entry-level worker.
- Subsidized federal loans often offer the lowest interest rates and most flexible terms, including covering the interest payments while you’re in school.
- Take the maximum amount offered in subsidized loans before turning to unsubsidized federal loans.
Let Us Help
A student loan from Hanscom FCU can help fund the remaining balance of a college education. Our loan officers work with you to understand your goals and situation, then create a strategy that makes the most sense for you and your family.
Repaying Your Loans? Consolidate and Save
You can now consolidate your current student loans with Hanscom FCU. Here's why you should consider refinancing:
• Simplify repayment with one loan • Lower your payments
There are many things to consider when consolidating your student loans, including the type of loans you currently have, your credit history, and your employment status. Before making a decision, research all your options. We can help. Call our Student Loan Center at 888-549-9050 for assistance.
Related Blog: How to make the most of your student loans.