There is wide array of false assumptions regarding student loan debt that are circulating across the country. For instance, many people believe it is difficult to obtain financial assistance to attend independent colleges. While it is true that student loan debt accounts for the highest levels of debt in the country, this is in part due to people’s misconceptions about seeking financial aid.
When individuals make decisions based on myths, they limit their educational options and will likely cultivate a significant and unnecessary amount of debt. Financial aid is offered by many universities and non-academic institutions. Unfortunately, a large number of students are simply unaware of the opportunities available to them. Consider some of the myths about student loan debt and their corresponding facts.
Myth: Going to college will result in 100,000 dollars of student loan debt.
Fact: While the average student loan is certainly large (29,400 dollars), the number of students with debts of 100,000 dollars or more account for only about 4% of all students. The majority of students with six figure student loan debt are graduate students.
Myth: There is little or no financial aid at independent colleges.
Fact: Independent colleges are twice as likely to offer grants and financial aid to their students. Students at for-profit institutions will receive three times less financial aid than those at independent colleges.
Myth: Defaulting on student loans is inevitable.
Fact: With student loans being high and growing every year, some defaulting is bound to happen. But of the almost 40 million people who have student loans, only 7 million defaulted. Obviously, this is a huge number, but nowhere near a majority of the people with student loan debt.
Myth: All students at independent colleges pay the same incredibly high tuition.
Fact: The average amount that students at independent colleges pay is less than 60% of the “sticker price.” With financial aid options, students are able to bring their tuition rates down to well below the high amount that most people think they pay. And students from lower incomes are given a greater amount of financial aid, making it more feasible for them to attend the university.
For more facts about student loan debt, contact the Brock and Stout Law Firm today.