THE IMPORTANCE OF HAVING A COLLEGE DEGREE AND STUDENT LOAN PITFALLS

The Importance of Having a College Degree
And Student Loan Pitfalls

  Sources extrapolated from: educationdata.org, iontuition.com, NPR-radio 

         It has been my experience that it does matter that you have a college degree to be a viable candidate to be considered for a position in the workforce, or so they say. No matter what they tell you is that they will give you the education that you require. There is always a price to pay. But what they don’t do is promise you any guarantee of promising you a job in the field of work that you had studied for. You are lucky if you have job assistance to guide you in pursuing your dreams. The rude awakening is when that loan you took out, and the bill comes due, where do you acquire the funds from? You turn your pockets inside and nothing to show for it. In short you are left empty handed with a major debt hanging over your head!

         My late father had gone the distance when he was an engineering teacher and went out when he worked in the CETA program. He contacted all his connections, had field trips, practically took them by the hand and made sure that his teachings didn’t go to waste. His students were so grateful for giving them the opportunity to succeed and put their skills to good use. By contacting his friends in that industry, he bridged the communication gap as well by simplifying the lessons that he taught. He went so far as to make coded enforced on illustrations for his foreign country-based students. He designed step by step guides so it would be easier to understand than the spoken word. Gone are the days of old. Nowadays it’s more like an assembly line mentality, get em in, get em out. The attitude is more corporate. Quantity over quality. 

         I achieved my college degree and I’m proud that I pushed myself to get it without any prodding from my family. What I have been encountering is that companies are demanding more and more of you. It’s the catch 22 that comes into play, i.e., experience. Where are you going to get the experience if you are never given the chance to demonstrate your skills for your chosen field? I have seen firsthand that anything less than having a BA (Bachelor of Arts) doesn’t cur the mustard! Do you have any idea nowadays how much money that it costs? Here are the statistics. The annual tuition for a four-year bachelor’s degree in the United States is $8,893 for in state attendees of public colleges, $22,203 for out – of – state attendees of public colleges, and $30,094 for private nonprofit colleges. Money doesn’t grow on trees.

         What is the best plan of action? Cover you’re A$$. Have something else, another skill to fall back on. Luckily, I have other talents to draw from literally. Ironically what I pursued in college course wise has never come into fruition. Now you see my reasoning. Since I’m not made of money, and I didn’t want my parents to shoulder the burden of my endeavor I searched out ways to get my education funded. I searched the internet and came across something called FAFSA. It stands for FREE APPLICATION for FEDERAL Student Aid.

          Recently I heard on the radio how student loans have hindered a graduate’s way of life. There was talk of garnishing paychecks, postponing life changing events like purchasing a home, or even getting married! It will also be detrimental to your credit rating making late payments or defaulting on a student loan! So, to become in good standing with Equifax, Transunion, and Experian it would take 3-6 months to repair. But once that damage is done when, if you need financing of any kind in the future don’t be surprised if you get turned down to purchase a car, home, etc. Usually its for sizeable, credit in good standing purchases. Your credit history is researched with a fine-toothed comb.

         If you can find a company that will assist you repaying your loan all the better and consider yourself lucky. Here is what you have to lookout for…

         The RELIANCE ON DEFERMENT: Taking out a student loan can be overwhelming, and you seek a better way of prolonging the inevitable pain of paying it back. You panic and turn to deferment as a last-ditch effort. But it’s not wise to go this route. Ideally deferment is designed for those returning to school or during a hardship, i.e., job loss. God forbid. The clock starts ticking once you get approval for your loan. When that time elapses reality rears its ugly head and payment comes due. Investigate other options, like refinancing or income- based repayment plans. It would be in your best interest to contact a financial advisor for assistance.

         Secondly, not thinking ahead and PLANNING FOR LONG TERM FUTURE. Having that kind of debt hanging over your head might be intimidating. But by ignoring it, and not confronting it head on will only come back to bite you in the A$$. What are your goals? Short-, and long-term ones. Most importantly don’t forget about retirement. Start, by putting plans into action! Always have a game plan and think ahead.

         The worst think you do is FORGET A LOAN. It’s easy to misplace loan information. You can’t just sweep it under the rug, or it will turn into a mountain! Keep detailed records readily available of every loan that you have taken out. Document all your information with your login information, and account numbers. By setting up autopayments this will ensure that you are covered. 

          If you moved recently make sure that the company is aware of it. By NOT KEEPING YOUR INFORMATION UP TO DATE will create setbacks. Changing your last name would affect it as well, especially if you signed with your maiden’s name and it doesn’t match their records. Make sure that your information about you is current. 

         Don’t count on declaring bankruptcy either. It would take up to two years to restore your credit. The fact is, its nearly impossible to get rid of federal and private student loans through bankruptcy. It is a long and meticulous process and an ordeal and get put through the proverbial ringer. Your best bet is to say that it is causing undue hardship. You must find a judge that empathizes with your situation, which is not always the case. A judge is not always going to let you off the hook that easily, if there is an inkling of you being somehow to make sacrifices to pay off your debt. It is highly unlikely for anyone to get rid of their student loan, via bankruptcy. So, it’s not the best plan of action.