Student debt in the United States is on a steady rise and has been for a considerable amount of time. Political newspaper The Economist has reported that the country’s student loan debt is exceeding $1.2 trillion as of June 2014. This alarming amount is in default due to over seven million debtors. Whether this is due to aimlessness or irresponsibility, many seem unable to find a way to pay back their student loans. The start of this problem originally occurs from the moment an aspiring student accepts a loan. Without having an infallible plan, one is setting himself up for a likely complication. It’s important to think ahead on how one will pay back a loan if accepting one. This can be done by proposing and following ethical propositions which
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There are generally two methods to approaching the payment of these loans which revolve around choosing which loan to payback first. The first method focuses on paying back the smaller loans with lower interest rates in order to make the debtor feel better emotionally as if they have completed more of the payback process. The second focuses on tackling the larger loans with higher interest rates first in order to keep these interest rates from growing too large. I believe the latter method is the more practical approach due to the fact that it can help save money for a debtor in the end. Along with choosing the appropriate loan to payback first, I believe it’s important to do long-term math regarding monthly payments of these …show more content…
I intend to do the math regarding how much of my student loans I can payback per month while also keeping in mind how to be smart with other funds in my life. Although it’s important to pay back student loans, it’s also important to have extra funds in case of emergency. Realistically speaking, most people won’t be able to pay over a thousand dollars per month for their loans especially with the extra costs of everyday living. I plan to limit my discretionary spending in order to save more money that can be used for my student loans. This way I can ensure that my student loan debt will be payed in a timely fashion although I won’t entirely be burdened by the repayment of
There are generally two methods to approaching the payment of these loans which revolve around choosing which loan to payback first. The first method focuses on paying back the smaller loans with lower interest rates in order to make the debtor feel better emotionally as if they have completed more of the payback process. The second focuses on tackling the larger loans with higher interest rates first in order to keep these interest rates from growing too large. I believe the latter method is the more practical approach due to the fact that it can help save money for a debtor in the end. Along with choosing the appropriate loan to payback first, I believe it’s important to do long-term math regarding monthly payments of these …show more content…
I intend to do the math regarding how much of my student loans I can payback per month while also keeping in mind how to be smart with other funds in my life. Although it’s important to pay back student loans, it’s also important to have extra funds in case of emergency. Realistically speaking, most people won’t be able to pay over a thousand dollars per month for their loans especially with the extra costs of everyday living. I plan to limit my discretionary spending in order to save more money that can be used for my student loans. This way I can ensure that my student loan debt will be payed in a timely fashion although I won’t entirely be burdened by the repayment of