Student loans becoming financial burden for college graduates

Samantha Drews, Staff Writer

After nearly two decades of payments, Andrew Johnson, 45, the Vice President of Operations at Krusinski Contruction company, has finally paid off his student loans.

“Student loans, especially today, can be significantly more and take significantly more time to pay back,” Johnson said. “This often can delay financial success and stability until much later in an individual’s life.”

A certain amount of money students borrow from the government in which they must pay back over time is a student loan.

“I have loans through a couple different places,” Lauren Bosman, who has a Bachelor of Arts degree in psychology, said. “For Sallie Mae, at the moment, I make interest only payments [that only lasts for a year then you have to start making actual payments]. I do income-based payments for my other loans.”

Student loans have become an epidemic in America with the national student debt at $1.5 trillion.

“Even though I am in $70,000 worth of debt, I would not trade my college experience and all the people I met, for anything in the world,” Bosman said.

During senior year in high school, students can start applying for FAFSA. The Federal Student Aid helps determine if a student is eligible for student financial aid; such as grants, loans, and scholarships. To apply for FAFSA, go to the FAFSA website and fill out the application by October 1, 2019.

“[The process] is super annoying. I remember getting help from my mother doing that,” Christina Schrems, MSW and CADC, said. “My parents unfortunately were right at the middle-class income line that did not allow for me any assistance.”

Some student loans are income-based and some are set up with a repayment plan schedule. Sallie Mae is a consumer banking company that services federal student loans.

“I am associated with FAFSA and Sallie Mae,” Bosman said. “I have loans through Nelnet and Navient as well. I do not think Sallie Mae helped very much. It would be a lot easier if Sallie Mae let you do and income-based repayment option, but they don’t. So, whatever they say, you have to pay.”

Though student loans can be a big problem for students graduating high school and college, there are ways to lessen the amount of money due such as going to a community college for general education classes, looking into scholarships and applying for loan forgiveness.

“Go to community college for those Gen. Ed. guys,” Schrems said. “Spending two years at university, paying quadruple the amount for the basic courses is an absolute waste of money.”

Student loan forgiveness is an option for people who work in a public service such as education, health services and emergency services.

“It is a program you can qualify for when you work in a specific public service field and are enrolled in a repayment plan of some sort,” Schrems said. “where after you have made 120 monthly payments while working full time, the remainder of your loans are then forgiven, and you no longer continue paying them off.”

Some people who can offer assistance with student loan application and eligibility for scholarships are college counselors, teachers and college administration. Eligibilities for scholarships depend on a high GPA, area of study and involvement in athletics.

“Apply for as many scholarships as possible,” Bosman said.

According to CNBC, the inflation of student loans has gone up by nearly 2.5 times over the past 20 years. Compared to the minimum wage of $8.25 for a working student, it is nearly impossible to pay off a $30,000 tuition average by a four-year graduation; making student loans the most affordable option for graduates.

“This [student loan] often can delay financial success and stability until much later in an individual’s life,” Johnson said.

Students do not have to begin student loan payments until six months after graduation. With that said, students have the option to start with a down payment as early as first semester.

“I paid $10,000 for my first semester up front,” Schrems said.

Once the schedule for student loan repayment is put in place, it is not set in stone. Individuals can refinance student loans; however, missing a student loan payment directly affects a student’s credit score and change the status to delinquent.

“I had to refinance them several times to reduce the payment but that ultimately extended/reset the loan term,” Johnson said.  “These refinancing efforts were necessary for me to financially survive with my current salary at the time.”

There is stress of the future and not knowing what it may hold.

“My advice to high school juniors and seniors is to not let yourself get overwhelmed by thinking you must know exactly what you want to go to college for,” Schrems said. “With time you will figure it out.”