How to Avoid the Deep Student Loan “Debt Trap”

Dear College Made Simple reader,

A startling statistic appeared in the news last week – yet no one seemed to notice.

According to the U.S. government’s Consumer Financial Protection Bureau, student loan debt has passed the $1 trillion mark.

So it’s important that families understand the real and long-term damages of this level of debt. And, most importantly, you want to know how to avoid falling into an inescapable debt trap.

– Scott

How to Avoid the Deep Student Loan “Debt Trap”

Of the $1 trillion student debt I mentioned, $117 billion of it was borrowed last year.

Think about that. Nearly 12% of our collective student debt was taken out last year.

Should these trends continue at this trajectory, we are putting ourselves at risk for another debt-laden financial meltdown.

Debt is a measure of risk. Too much of it – especially in an unstable job market – puts borrowers in an compromised financial standing and threatens to upend long-term plans such as starting a family, buying a house, and retiring comfortably.

Meanwhile it’s common knowledge that tuition prices continue to climb to astronomical and unaffordable heights.

For the 2009–10 academic year, annual prices for undergraduate tuition, room and board were estimated to be $12,804 at public institutions and $32,184 at private institutions. Those figures are 37% and 34% leaps, respectively, from figures taken at the beginning of the 2000s decade.

The Department of Education hasn’t yet released tuition prices for the 2010-12 year, but the writing is on the wall.

The picture I’m painting isn’t pretty. Future college students have many challenges in front of them.

College Made Simple is here to help you face these problems AND solve them.

We do that by taking a big-picture view of a college education and help you get the biggest bang for your buck to avoid falling into debt. And we’ll do that by…

•           Helping you choose the right major. People choose the wrong major for a lot of reasons (mistaking interest for talent, pressure from parents, perceived trends, indecision, etc). By doing so, they are setting themselves up for either a flat, lifeless career or an expensive career overhaul. For many, it’s both.

•           Helping you choose the  right college. Picking the right college is perhaps the most important decision you’ll make in the entire college process. It’s not always about the availability of programs, but the availability of financial aid and scholarships.

•           Helping you find and win scholarships. There are millions of dollars in scholarships available, yet prospective students don’t apply for them because A) they don’t realize they are out there and B) they don’t know what it takes to win them.

•           Helping you get the best financial aid package possible. The financial aid process is a maze fraught with dead ends, pitfalls and expensive consequences for good intentions. Families absolutely need to be armed with the best information when navigating the financial aid process.

You can get on this path right away by taking us up on our Free College Funding Analysis.

To your college funding & admissions success,

Scott Weingold

Co-Founder, College Planning Network LLC

Publisher, CollegeMadeSimple.com – The free educational resource of College Planning Network

 

Related Articles:

The Student Loan Dept Bubble

The Straight Facts on Paying Back Your Student Loans

Return to College Made Simple's Free Reports

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Editor's Note: Scott Weingold has been ranked the #1 “College Financial Aid Expert Worth Knowing About” in the entire country by CollegeStats.org.  He has co-authored the book, “The Real Secret To Paying For College. The Insider’s Guide To Sending Your Child To College – Without Spending Your Life’s Savings.” Scott also publishes a popular free online newsletter, “College Funding Made Simple" which reveals insider’s tips, methods, and strategies for beating the high cost of college.

Scott is the co-founder and a principal of the widely renown College Planning Network, LLC – the nation’s largest and most reputable college admissions and financial aid planning firm. CPN is a proud member of the Better Business Bureau, the National Association of College Funding Advisors, the National Association for College Admission Counseling, the National Association of Student Financial Aid Administrators and the Student Affairs Administrators in Higher Education.

Scott, along with his college funding advisory team, helps thousands of families throughout the country with their college planning needs and offers a series of free educational webinars and workshops on “How To Pay For College Without Going Broke In The Process!” He's been featured or mentioned in The Philadelphia Inquirer, Yahoo News, TheStreet.com, Voice America with Ron Adams, Crains Cleveland Business, and on Cleveland Connection with James McIntyre.  Scott has published numerous articles and is a professional speaker who has addressed thousands of audiences online and offline throughout the United States.  His actionable insights and candid, open approach have earned him & his team numerous media interviews, citations, and speaking opportunities, and his free online video workshop is one of the Internet’s most widely viewed pieces in the college funding space.