Debt for students increases in 2008

One form of loan that people may seek debt relief from are those associated with getting an education.

In fact, recent numbers from the Project on Student Debt show that the average debt for students graduating from college continues to increase. The project's report showed that the average debt for graduates in 2008 was $23,200. Beginning during the 2003-2004 school year, the average debt for graduating students has increased about 6percent every year.

"With debt and unemployment at record levels, young college graduates may feel stuck between a rock and hard place," Lauren Asher, president of the Institute for College Access & Success. The institute plays home to the Project on Student Debt.

Along with facing increasing amounts of student debt, more people are relying on borrowing in order to get an education. Relying on numbers from National Postsecondary Student Aid Study, the project noted that about two-thirds of 2008's graduates had student debt, which is up from the 58 percent who did so in 2004.

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Bad Credit Student Loan Financial Aid; Paying For College, Student Loans With Bad Credit

Most incoming college students have no credit history, which is just as bad as a low credit score, but those seeking financial aid for an education may want to look for a bad credit student loan, which will pay for college by taking the place of traditional financial aid.

A bad credit student loan for financial aid may help pay for college, but these should only be sought if no other financial aid is available, for a number of reasons. One, is the interest rate is likely to be higher on the bad credit student loan. Obviously, a new college student can’t see four years down the road, but if you can only hope to pay off a bad credit student loan, and have little guarantee about your ability to pay in the future, then weigh your options.

Also, a bad credit student loan will most likely require a cosigner so that will need to be available if you are looking for a bad credit student loan to pay for college. Most financial aid will be loans so just make sure you know the terms ahead of time, like when will interest accrue, how long after graduation until repayment begins, etc.

Stafford loans are usually the best loans for a new college student to look for since the government secures them, require little or no credit score, and are more easily available to students since they have a cap on the amount you can borrow.

Research the lenders you may go with, look for low interest rates, and try to find someone who understands you are looking to pay for a quality education, not bury yourself in debt for the rest of your life. If you take the time to do the work and are in need of a bad credit student loan, you will find the financial aid you need to pay for college.


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