Major Student Loan Mistakes, and Ways to Avoid Making Them

Major Student Loan Mistakes, and Ways to Avoid Making Them

Major Student Loan Mistakes, and Ways to Avoid Making Them

Copy Link
Facebook
X (Twitter)
Bluesky
Pocket
Email

The economy’s long nosedive has done more than raise unemployment rates and housing foreclosures—it’s also contributed to a devastating increase in the amount of student debt. Following a recent Education Department report on debt repayment figures, Gawker compiled a list of the top ten universities for student debt, which is topped by NYU’s staggering $659 million total.

This year also marked the first time in history that outstanding student loan debt exceeded outstanding total credit card debt, with student loan debt nationwide increasing at a rate of about $2853.88 per second. It’s a grim landscape for students who’ve borrowed money, and one that is rife with ways to exacerbate the amount owed. In light of this, Sarah Deveau has provided a helpful list of tips and practices to avoid via the San Francisco Chronicle.

Highlights from the pieces, "The 6 Worst Student Loan Mistakes You Can Make" include smart warnings against tempting practices like falsifying information on a student loan application, spending loan money on non-essential purchases and missing payments. "Some experts suggest that your monthly student loan payment should be no more than 10% of your expected salary," Deveau writes. "Calculate your monthly loan payments based on a 10-year repayment schedule, including interest, the find out the average starting salary for your career choice. If your loan payments will be higher than 10%, look at reducing the amount you borrow, either through producing more income or switching to a less expensive program."

The bottom line, she says, is this: 

A student loan is often the first large sum of money a young adult must manage themselves. Avoiding common money mistakes when it comes to financing your college education is crucial to graduating with only good debt, and as little of it as possible.

Some of it seems fairly no-brainer, but Deveau lays it out in concrete, practical terms that should make a lot of sense—especially to students taking on loans for the first time.

Support independent journalism that does not fall in line

Even before February 28, the reasons for Donald Trump’s imploding approval rating were abundantly clear: untrammeled corruption and personal enrichment to the tune of billions of dollars during an affordability crisis, a foreign policy guided only by his own derelict sense of morality, and the deployment of a murderous campaign of occupation, detention, and deportation on American streets. 

Now an undeclared, unauthorized, unpopular, and unconstitutional war of aggression against Iran has spread like wildfire through the region and into Europe. A new “forever war”—with an ever-increasing likelihood of American troops on the ground—may very well be upon us.  

As we’ve seen over and over, this administration uses lies, misdirection, and attempts to flood the zone to justify its abuses of power at home and abroad. Just as Trump, Marco Rubio, and Pete Hegseth offer erratic and contradictory rationales for the attacks on Iran, the administration is also spreading the lie that the upcoming midterm elections are under threat from noncitizens on voter rolls. When these lies go unchecked, they become the basis for further authoritarian encroachment and war. 

In these dark times, independent journalism is uniquely able to uncover the falsehoods that threaten our republic—and civilians around the world—and shine a bright light on the truth. 

The Nation’s experienced team of writers, editors, and fact-checkers understands the scale of what we’re up against and the urgency with which we have to act. That’s why we’re publishing critical reporting and analysis of the war on Iran, ICE violence at home, new forms of voter suppression emerging in the courts, and much more. 

But this journalism is possible only with your support.

This March, The Nation needs to raise $50,000 to ensure that we have the resources for reporting and analysis that sets the record straight and empowers people of conscience to organize. Will you donate today?

Ad Policy
x