The Need For Better Education Debt Management

It will come as no surprise that student loans are on the rise in the US.

Most people try their best to repay their loans, but they sometimes become difficult to manage. When you fall behind on your payments or really default on your loan this can have a negative effect on your financial record. This will result in unfavorable rates when you later apply for a mortgage or insurance.

The Chronicle of Higher Education reports that 20% of borrowers with government -backed student loans that entered repayment in 1995 have defaulted.

American Student Assistance (ASA) recently released a paper on the need for better education debt management.

Each year millions of students enter college to better themselves academically and secure a stronger financial future.

To achieve this goal, a majority of students must take on debt that has the potential to ruin their financial future before they even get started. While grants at one time accounted for the majority of student aid, over the last 30 years there has been a massive shift toward student loans to cover the costs of financing higher education.

American Student Assistance (ASA) is a nonprofit, federally funded organization whose mission is to help college students and their families successfully manage higher education debt. Through proactive counseling, guidance, and education, ASA provides borrowers with neutral, personalized federal student loan solutions throughout their entire loan experience.

Source: Approaching the Tipping Point