A recent study by the Federal Reserve Bank of New York highlighted growing concerns over the amount of student loan debt the average student takes on to pay for their college education.
The report said the total balance of student loan debts was $870 billion, and of the 241 million Americans with Equifax credit reports (one of three major credit reporting agencies) 15 percent had student loan debt.
Student loans used to be seen as a last resort to pay for college. But with lower interest rates and higher tuition costs, students began to see them as a normal part of the financial aid package to fill gaps in aid.
While student loans are certainly available to help cover the costs of a college education, students should exhaust their scholarship opportunities before turning to student loans.Scholarships provide aid that doesn't have to be repaid, while student loans must be repaid with interest!
With billions of dollars of scholarship aid available, it is not as hard as you might think to secure scholarships for college. For starters, you can take advantage of the My College Dollars app that helps to match you with scholarships you qualify for. It also helps you keep track of application deadlines so you stay on track for submitting all your paper work!