6.0 Lesson 3: Student Loans

How many student loan borrowers owe more than $100,000?

The average starting salary for a college graduate is approximately $55,000. What percentage of student loan borrowers have LESS than $60,000 in debt?

Think ahead to the year 2035. Predict one way this graph might change and explain your reasoning.

A substantial fraction of borrowers owe less than $5,000. Who do you think is represented in this debt range and why might the number of borrowers in this range be so large?

Out-of-state schools are often significantly more expensive than in-state schools. Do you feel like attending school out-of-state is worth the extra expense? Explain why or why not.

How does the salary you will earn after graduating college factor into how much you should take out in student loans?

In general, do you think taking out student loans is a good thing or a bad thing? Explain your reasoning.

When taking out student loans, what do you call the signed agreement to pay them back?

Imagine you’re looking at attending a college whose tuition is $10,000 per year. Would you be able to pay your tuition only using federal student loans your first year?

Describe one downside to borrowing the maximum allowed amount of federal student loans.

Briefly describe the interest rates associated with the different types of federal student loans.

At what point are you no longer eligible to receive Direct Subsidized loans?

Think back to the interest rates for federal student loans you learned about in the previous resource. How do the interest rates for private student loans shown in the article compare?

We’ve learned that private student loans are the last type of financial aid you should utilize. What characteristics of private student loans best explain why that is?