Freshman Marti Pike applied for student loans in order to attend Harding. She said she understands that loans are a big responsibility, but that the benefits of her decision outweigh the risks.<\/p>\n
\u201cAt the end of the day, if I didn\u2019t go into debt, I wouldn\u2019t be in college,\u201d Pike said. \u201cI want to be a doctor, and I know I need a degree to do that. That will make the money back and also give me the opportunity to do something that I love.\u201d<\/p>\n
Graduate Financial Aid Director Renee Bissell said students often allow their parents to take control of their loans while in school, which often leads to post-graduation panic.\u00a0<\/span><\/p>\n \u201cWhen you just let mom and dad figure it out, and you don\u2019t really know what this means, that\u2019s a dangerous thing,\u201d Bissell said. \u201cYou need to know what this debt means for your future.\u201d\u00a0<\/span><\/p>\n Over half of Americans ages 18 to 29 have outstanding student loan debt, according to the Pew Research Center. At the end of June 2017, Americans owed more than $1.3 trillion in student loans. For many students, paying outright for a college education simply is not an option. Still, enrollment in four-year institutions continues to rise, according to the National Center for Education Statistics.\u00a0<\/span><\/p>\n Bissell emphasized the importance of keeping a budget during school and after graduation.\u00a0<\/span><\/p>\n \u201cIt\u2019s very helpful to have an understanding of how money works and how debt works. I don\u2019t think that students understand what the word \u2018debt\u2019 really means,\u201d Bissell said. \u201cThey don\u2019t seem to catch it until they get out of school, and they have to make their first payment. Then they\u2019re scared to death.\u201d<\/p>\n To better prepare for the future, Bissell said, immediately educating oneself about debt is essential.\u00a0<\/span><\/p>\n \u201cThe biggest mistake students make is not being educated. People bury their heads in the sand,\u201d Bissell said. \u201cIf you don\u2019t pay attention, you can take on more debt than you need.\u201d\u00a0<\/span><\/p>\n Financial Aid Counselor Rigel Page encourages students to keep track of the loans they take on and look into payment options while they are still in school.\u00a0<\/span><\/p>\n \u201cDon\u2019t borrow more than you have to,\u201d Page said. \u201cKnow what your loans are. Sit down and look at how much you\u2019re going to make and how much you can pay.\u201d\u00a0<\/span><\/p>\n According to studentloans.gov, understanding the difference between direct subsidized and direct unsubsidized loans is crucial. Direct subsidized loans, also known as Stafford Loans, accrue interest throughout college, which the U.S. Department of Education pays. Direct unsubsidized loans, also known as Direct Stafford Loans, are available to undergraduate students as well; however, students must repay all interest on this loan. Loan servicers provide a variety of payment options such as date-specific payments, plans customized to one\u2019s income and loan consolidation, which combines loans into one monthly payment with a single servicer.\u00a0<\/span><\/p>\n Page urged students to contact their lender with questions about repayment and consolidation of their loans, noting that students should think twice before deciding to consolidate.\u00a0<\/span><\/p>\n \u201cYou can only consolidate one time,\u201d Page said. \u201cPeople think that if they consolidate to make one payment, it\u2019ll be easier. Then something happens, and they can\u2019t do that anymore because they\u2019ve already done it. Wait to consolidate until you really need to. Most of the time, it\u2019s not a benefit.\u201d<\/p>\n The problem compounds when students pursue graduate school. Graduate schools usually allow students to take on larger loans, which can make repayment more difficult in the future, according to Bissell. A graduate student should be extremely careful about what they spend, especially if they are already living entirely on loans.\u00a0<\/span><\/p>\n \u201cDon\u2019t go buy a new car and expect to pay for it with loans,\u201d Bissell said. \u201cThink about even your everyday life. A $5 cup of coffee is not a $5 cup of coffee, it\u2019s that cup of coffee times the interest that\u2019s accruing on it for the next four years.\u201d\u00a0<\/span><\/p>\n Students should also take note of loan forgiveness programs, such as the public service loan forgiveness program and the teacher loan forgiveness program. Students employed at governmental organizations or non-profit tax-exempt organizations may qualify for public service forgiveness programs.\u00a0<\/span><\/p>\n Alumna Audrian Harville, a fourth grade teacher at Landmark Elementary School in Little Rock, qualified for teacher loan forgiveness. Students in education programs can qualify for the TEACH grant, a loan forgiveness program that offers up to $4,000 a year to teachers who work in high need fields of low-income schools for four years after graduating.<\/p>\n Though Harville is involved in a loan forgiveness program, she spoke to the impact student loans continue to have on her life.\u00a0<\/span><\/p>\n \u201cI wish I had known how much of a burden they are. Loans can be debilitating,\u201d Harville said. \u201cOur society has changed \u2026 it is seen as a necessity for success, but the cost is astronomical.\u201d<\/p>\n Still, students should not forego a good education due to fear of debt, according to Pike. Instead, they should treat the decision like a personal investment.\u00a0<\/span><\/p>\n \u201cWhen you invest in college, you\u2019re investing in yourself and your abilities,\u201d Pike said.\u00a0 <\/span>\u201cIf you work hard, it will pay off. As soon as you start investing in yourself, you start to accumulate better opportunities.\u201d<\/p>\n Sophomore accounting major Jackson Acuff said student debt affects several aspects of life, including a future career.<\/p>\n \u201cDon\u2019t ever be late on your payments,\u201d Acuff said. \u201cIf you\u2019re a business major, and when you go to apply for a job and that company sees that you have a bad credit score, they\u2019re not going to want to hire you. Student loans impact your ability to get more loans, rent an apartment, buy a house and even get a job.\u201d<\/p>\n According to senior management information systems and international business double major Julia Bergeth, it is important for students to realize that they will have to live below their means once they graduate.\u00a0<\/span><\/p>\n \u201cYou\u2019re starting your post-grad life with debt, so don\u2019t plan on living the way your parents live as soon as you graduate,\u201d Bergeth said. \u201cThey are were able to afford that lifestyle with a greater amount of income, while you will be having to pay off whatever amount you owe.\u201d\u00a0<\/span><\/p>\n Bergeth also discussed the importance of paying more than the minimum requirement each month.<\/p>\n \u201cPay off your student loans as quickly as possible,\u201d Bergeth said. \u201cDon\u2019t just make the minimum payment each month, pay more than that so you\u2019re not paying more interest.\u00a0<\/span><\/p>\n There are resources out there to help students manage their student loans; but, according to Bergeth, doing what you can to start paying them off now will make it easier on yourself in the future.\u00a0<\/span><\/p>\n \u201cEducate yourself. Always educate yourself,\u201d Bissell said. \u201cGet out of debt as fast as you can \u2026 then you don\u2019t have to worry about it. \u2026 It\u2019s well worth just being in pain for a little while and not having that house, or not having that new car, and being done with it. You have to make sacrifices.\u201d<\/p>\n For more information on student loans and financial aid, contact Harding\u2019s Financial Aid Services at finaid@harding.edu.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" Freshman Marti Pike applied for student loans in order to attend Harding. 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