Dun Dun Dun. Something that most people are dreading after college. Not only do you have to worry about becoming an adult and handling a full time job, you also need to pay off your student debt if you took out loans for college.
Two types of loans that the government offers through FASFA are unsubsidized loans and subsidized loans. Unsubsidized loans are loans where the student is responsible for the interest from when the loan is taken out, while subsidized loans are loans where the government pays the interest on the loan until the student graduates – some time after graduation, the student becomes responsible for the interest on the loan as well as the loan.
According to the Federal Reserve Bank of New York Consumer Credit Panel, the average student loan debt in America is $26,700, but that can vary by state. In Delaware, 65% of the state’s graduates have an average of $33,849 in student debt, one of the highest student debts in the country. This means that many of us have decided to make a big investment in our future. The ValuePenguin study says that graduates in New Hampshire have the highest amount of student debt, while those in Utah have the lowest.
However, there is no need to fret. As long as you remember to pay on time and pay in bigger portions than required, a loan can be paid off!