Education is often touted as the reason many people rise from obscurity and impoverished conditions to power and privilege. In many communities, getting accepted into a respected university is a goal that parents want their children to achieve. College is known as a way to attain success. Yet in the last quarter century, it’s become harder and harder to get a college education without finding yourself deep in debt at the end of your college career.
At a typical four year public college, the yearly cost, including room and board, is estimated at just over $15,000. When looking at private universities and colleges, the total increases to a staggering $35,000 per year. Since these are averages, there are many colleges with costs that are both lower and higher. Still, going to college has become a very expensive endeavor.
While the country is in a recession, most universities continue to increase tuition rates well beyond the rate of inflation. There are few families and even fewer students who can pay these fees outright. So, the education system is built on credit, financial aid, and staggering amounts of debt. Many students come out of college financially broke and deep in debt.
Once out of school, students have six months to get some kind of income before they need to start paying off their student loans. Students are allowed a lengthy time to pay off their debt at low interest rates. However, each college loan is a separate payment. Having multiple payments coming due at once is daunting even for students who have solid jobs. Many students have taken it upon themselves to contact debt consolidation firms. These institutions can help alleviate the pain of multiple payments. By consolidating multiple payments into one, you lower your monthly payment while also lowering the interest paid on the loans every month.
