A new change to the process of applying for federal financial aid could lead students to make smarter choices when borrowing for college. Starting this year, the Free Application for Federal Student Aid (FAFSA), which was previously available for students and their families to fill out in January, is available starting October 1.
Borrowing to pay for a college or university education can also be a major source of financial strain for young adults. According to Credit Karma’s Credit Fumble™ survey, 32 percent of all loan defaults were on student loans.
A new survey by Credit Karma confirms that the cost of higher education has increased massively in America. Millennials were almost two-and-a-half-times more likely than Baby Boomers to have paid $30,000 or more for their education (47 percent to 19 percent), and more than three times as likely to have paid $60,000 or more. Almost 1-in-8 Millennials said that they had borrowed $50,000 or more to pay for their education.
Educating consumers about the ins and outs of their student loans and the rights they have will help them start to take control back. Student loan debt can make people feel powerless. Missed payments and defaults have long-term negative impacts for borrowers. It is important that borrowers know the nitty-gritty details of their loans, their interest rates, their payment terms and any potential grace periods they might have. Let's demand more support for financial literacy.
It’s hard to afford college without student loans. According to the Institute for College Access & Success, 69 percent of graduates from public and nonprofit colleges had student loan debt. Credit Karma data from our member base of over 40 million consumers shows the 15 cities where the highest percentage of members had student loans.
Is there a right way and a wrong way to pay off student debt? Who is doing a better job?
Residents of which cities are carrying the most student loan debt and what can they do about it?