Community Colleges and the Dangers of Student Loan Debt

for high school students who are on the hunt for ways to reduce the cost of college education, your local community college might seem like a way to keep costs down and avoid the crush of debt from school loans.

In fact, many financial advisers recommend that if you are aware of the cost of a student, you can complete your first two years at community college before transferring to four years in university to receive a degree, as well as how to cut college costs as much as half and reduce your needs are for college credit.

community colleges almost everywhere, the annual tuition rates well below those four years of colleges and universities, at first blush, the route two years may seem like a logical choice in terms of cost management and college loan debt relief.

As it turns out, however, a community of students were among those students likely to struggle with college loan debt and default on their federal student loans.

According to the latest figures from the U.S. Department of Education, 10.1 percent of the community of students who wore the federal education loans end up defaulting on loans in the first two years of repayment - more than double više4, 4 percent of borrowing students at public universities, four years and 3.8 percent of borrowing students at private universities four years.

Expanding the scope of view of student loan delinquencies to defaults - from late payments, not just a complete lack of payment, also point to cope with the repayment of debt - the potential for trouble among community college borrowers was even greater:. a whopping 60 percent of the students or the community will default or become delinquent (without defaulting), the college credits, according to a new report published by the Institute for Higher Education Policy

In comparison, among student borrowers at public universities four years, 34 percent and will fall behind or default on their school loans. For four years the private universities, 28 percent will.

Minimization and Management, student debt at the Community College

So what do you default and delinquency rates mean for college-bound adults who are looking to find a quick way of working age population, or for graduates who want to reduce the cost of four years of college education transfer credits from community college?

For many students, attending a community college is still an effective way to significantly reduce the total amount spent on college education, but there are several dangers careful to avoid taking on more student loan debt than you'll be able to handle later:

1) Keep free of tuition costs low.

full 52 percent of students performed an associate degree and 37 percent of students in certificate programs do not take any school loans at all, according to the College Board.

These students would work in the community college experience in management of their living expenses at the same time they retain their college costs low. Most communities are commuter students, students who live at home, which reduces back to the room-and-board costs.

Controlling or reducing the cost of living can mean life at home with their parents, brown packing lunch instead of eating on campus, or working part or full time while going to school.

2) Are you looking for scholarships and grants.

can reduce your cost of college and beyond, looking for scholarships and grants, which give financial assistance that, unlike college credit, should not be paid back.

If you are a student works, check with your human resources department at work. Some employers offer tuition reimbursement programs or vocational training benefits to help defray the costs of higher education.

3) to finish your degree.

For those students who do not have to rely on student loans to get through school, once the best predictor of successful repayment of the certificates. Students who complete the degree, above and beyond, are likely to pay back their school loans without defaulting, and becomes delinquent.

Only 15 percent of community college graduates default on college loans, compared with 27 percent of community college breaks, according to the Institute for Higher Education Policy. When looking at student borrowers who fall behind on loan payments without defaulting, 27 percent of community college graduates experience this type of crime, compared to 39 percent of the community of students who have not completed their degree.

Students who spend one year or less in school are most likely to run into repayment problems in college debt, often because they can not even find a job or jobs that do not are not paying enough to allow them to pay their student loans.

4) to borrow only what you need.

excessive can be particularly problematic for the community of students, because the federal education loan program offering the same loan amount maximum, regardless of the type of school they attend.

Most undergraduate federal loan is $ 5,500 for first year students and $ 6,500 for second year students ($ 9,500 and $ 10,500, or, if you're an independent student, not financially dependent on their parents).

the largest federal undergraduate loans, in other words, it will be, as opposed to four-year college or university, usually covers the cost of tuition and fees at community college, leaving a few thousand dollars still available for books, transportation and living expenses .

that the extra money can be tempting. Living expenses can be very challenging for many students, regardless of the type of school they attend. How do you pay for your living expenses while in college can mean the difference between manageable and unmanageable levels of debt when they graduate.

After a plan to pay for their living expenses, without resorting to maxing out your student loans will significantly reduce the amount of money you need to complete the degree. And less student loan debt when you graduate, below - and thus more manageable -. Monthly payments will be and the faster you will be able to pay these loans from the