Student loans have always been one of the biggest enemies of students as they assess their financial situations. Worse yet is that for many families, the parents take on the brunt of the force that comes from these massive student loans. Education is fantastic; this much has been pounded into our heads every since we were in elementary school, but what we weren’t taught was how expensive it is. Many students are finding out that they have no way to pay off their student loans and having to take deferment on their loans. In some situations, this is really the only option, but it should be highly avoided at all costs.
With that said, there is a smart way to go about student loan deferment, but there’s also a not-smart way to go about it; I highly suggest taking the smart way. Applying for loan forgiveness is a great way to lessen the brunt of the payments, but this really only happens if you find yourself unemployed. Refinancing your student loans is another option. This is when you renegotiate your payment plans with the school so it can fit better for you. More times than not this to minimize your payments and stretch them out over a long period of time; this is very common in low-income households. However, the total amount of interest you will end up paying will increase by doing this rather than just dealing with the slightly larger payments. No matter what decision you go with, I highly suggest getting some advice.
The message that “college is expensive” has been shouted throughout the whole education system, luckily, the government has listened. The government wants to make it known how expensive college is well before anyone enrolls anywhere. Furthermore, financial aid is being increased through American Opportunity Tax Credit which provides up to $2,500 per student to go towards tuition and other expenses. You must not forget that tuition is only one part of the expense of college. There are bundles of fees around every corner as well as course materials (like books) that can be be expensive.
College is after all completely optional and there are many occupations and fields where employees are employed right outside of high school. But if you want to pursue a degree, then you better be ready to pay for it. Even though a degree can potentially land you a very solid jump doing something that you love, it won’t be worth anything if you can’t finish school because you can’t pay tuition or the student loans that follow. If this is you then deferring your student loan payments could be the only option for you.