Tuition: $27,564, Room and board: $20,430, a degree from aprivate four-year institution….expensive.  Todaystudents are paying enormous amounts of money for an education. According to the Nellie Mae Foundation, the average studentswill graduate with over $18,800 in debt (this figure nearly doublesfor graduate school).  That’s enough to put a nice downpayment on a $200,000 home!

Similar to mortgages, school loans areconsidered by financial advisors to be good debt. Nevertheless,debt is debt.  How do you pay it back? How do students on thebrink of graduation prevent feeling overwhelmed?

William Carter, a graduate ofPrairieViewA&MUniversity, has accumulated over $20,000 instudent’s loan debt.  However, he stated that the ROTC Armyhelped him out significantly because it paid for three of his fiveyears of school.

Now in his first year at Dallas TheologicalSeminary (DTS) School, Carter is paying over $400 a month to stayenrolled.  “I’m not worried about it [student loans]because when I come out of school I will have financial stabilityin the United States Army as Captain.” Carter’s adviceto other students is “don‘t take out loans if youdon‘t have to.”

Patrice Clark, a senior political sciencemajor at Howard says, “At one point I did feel overwhelmed,but not any more because I know that there are many payment optionsavailable,” he said.  “After grad school I hope to secure astable job where I can pay it back.”

At HowardUniversity, the Washington Postrecently held  a seminar entitled, “What is yourFinancial IQ?” Learning About Managing Dollars MakesPerfect Sense.  The forum on financial literacy includedinformation for debt management, bill consolidation, home buying,starting your own business and financial management.

Tessa Smith, a junior print journalism majorat Howard says, “I don’t feel overwhelmed by my loans. I’veonly accepted two small loans so far, so I don’t think it will betoo hard to pay them off, especially since I have parents who arewilling to help me if I get into a bind.”

“I do not feel overwhelmed yet(concerning my loans) because I am not forced to pay for them rightnow and I know that the loans enabled me to go to school,”said Latoya Branch a junior psychology major. “My loans areprobably around $20,000 and I plan on paying them off when I get mycareer started.  Hopefully I can afford to pay my loans once Ienter the work world, but that remains to be seen.” addedBranch.

A few tips to consider when applying for loansand paying them off are:

1. First things first, borrow only what youabsolutely NEED!

2. Live below your means

3. Start paying them off as soon as possibledon’t wait to you graduate if you have the money now to putaside.

4. Try to get the lowest interest possible

5. Don’t worry yourself to death as longas you can put a little down your consistency will pay off,literally!

The University of Michigan’s Office offinancial Aid has put together a graph to allow students to see howlong it will take them to pay off their debts.

BACHELOR’S DEGREE:

The average amount borrowed by a studentreceiving a bachelor’s degree is $18,900.  The chart belowshows the monthly payments and the total amount repaid under threedifferent repayment options at the debt level.

*Interest rate of 3.24% (the current rateduring repayment or forbearance).

MASTER’S DEGREE:

The average amount borrowed by a studentreceiving a master’s degree is $36,900. The chart below shows themonthly payments and the total amount repaid under three differentrepayment options at this debt level.

*Interest rate of3.24% (the current rate duringrepayment or forbearance).