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The breakdown of the costs associated with college includes tuition, room and board, transportation, books, and other miscellaneous supplies. In today’s economy, the average annual college tuition can range from around $25,000 for an in-state public college to $50,000 for a private college. 

If you are one of the lucky ones, you might earn an academic or athletic scholarship. Some people are even fortunate enough to be able to fully pay for college in real-time. Those people make up less than 30% of the population, however. For the remaining 70% of Americans who have gone through the U.S. higher education system, they can tell you how painful it is to spend years of their adult life saddled with student loan debt. 

Help End The Student Loan Crisis

The current total student loan debt in the U.S. sits at over $1.56 trillion. That number is shared among 45 million people. To give a sense of how extreme an epidemic this is, that amount is $521 billion higher than the nation’s entire credit card debt. 

Rid Yourself Of Those High-Interest Rates

The main reason it is so hard to climb out of the hole of student loan obligations is the high-interest rate. This can vary depending on the type of loan. Subsidized loans are based on income and do not accrue any interest until the student graduates. The interest is paid by the federal government until then. Unsubsidized loans, however, are a fixed rate and begin adding up interest immediately. Regardless of which type you choose, it is wise to pay off your student debt as quickly as possible. The average federal student loan interest rate is approximately 4.5% for subsidized undergraduate loans and can go up to 7% for unsubsidized graduate loans.

Protect Your Credit And Your Future

Because of these high-interest rates, it is widely advised that you should attempt to pay off a student loan within two years’ time. Not doing so will affect future endeavors such as buying your first house or trying to not drown in credit card debt. This is a weight that you don’t want to carry for long. The best way to pay off a loan as quickly as possible is to have a plan of action. Setting a goal date may not be exactly accurate, but the idea of having one gives you motivation, shows you an endpoint to strive for, and it gives you encouragement by letting you see your progress throughout your journey. 

Here at Morris Invest, we pride ourselves on our ability to help people build wealth through passive income. Interested in learning more? Let’s schedule a consultation to get started!