You don't need me to tell that that school's starting again, and for most college students--and even some high schoolers--there can be some tension when figuring our how to pay for it.

I’m one of many college students who have gone into debt to pay for school. Coincidentally, the Department of Education announced that default rates on student loans are on the rise, jumping 7% between 2007 and 2008. Data was not immediately available as it took into account those who had defaulted before September 2009.

On top of that, fewer 16- to 24-year-olds were employed than since records began in 1948. A scant 48.9% of them had jobs, which is not great news when you’re just getting done with school.

So what can you do to calm student loan anxiety? Before you borrow, find out which loans are best: always go for a subsidized federal loan (like the Perkins loan) before looking into unsubsidized federal loans (some Stafford loans), and exhaust both options before taking on private loans.

Also, don’t take on more debt than you need to pay for school, know your loans and their grace periods (the amount of time you have after you’re done with school to pay loans without penalty), be careful if you want to consolidate, and try to score a job as quick as you can. Seriously, those things need to get paid off.

As a final thought: The average college student leaves school with over $20,000 in debt, but the average starting salary for those grads is $30,000 a year. Just like schoolwork, taking your time and doing research before getting involved with loans could save you a hassle down the road.

--Brandon

Photo taken from this photostream and used with permission of a Creative Commons license.
 

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