EDUCATION
SPECIAL SECTION:
• Electrician – Training to become an electrician takes about
as long as it takes to get a bachelor’s degree and a license,
but this job training pays for itself along the way. If reading
blueprints and installing or repairing wires and other electrical
components interests you, this career might be electrifying.
• Plumber – You’ll need your high school diploma and an
apprenticeship to become a plumber. Once you are licensed,
you can start to work, but you’re sure to need some physical
strength to take on this job.
• Diagnostic Medical Sonographer – After obtaining an
associate degree, sonographers go on to prep patients for
procedures, review and process images for physicians, and
administer ultrasounds. You’ll also be responsible for operating
imaging equipment.
• Elevator Installer – A career with high earning potential,
elevator installers repair and maintain elevators, escalators,
moving walkways, and lifts. A high school diploma and
apprenticeship is required for this role, so if you’re good with
power tools, this job might be a lift up for you.
TYPES OF COLLEGE LOANS
Getting into college is one of the most exciting times of a
student’s life and is the first step in shaping his/her career. Many
colleges and universities offer a myriad of grants or scholarships to
assist with paying for post-secondary school, but often these are
not enough. Student loans provide financial assistance for students
to cover the costs associated with attending a college or career
school, including tuition, supplies, books, and living expenses.
There are several types of loans available including need-based,
non-need-based, state, and private.
Need-based loans are provided to students who are unable to
pay the amount needed to cover all costs to attend college. Need
is determined by the Free Application for Federal Student Aid
(FAFSA), which can be completed online, as the name suggests,
for free! Need-based loans are available as a Federal Perkins Loan,
awarded to students with the highest need, or a Federal Direct
Subsidized Loan, provided interest-free while in college.
If FAFSA determines that a student is ineligible for a need-based
loan, non-need-based loan options are available as a Federal Direct
Unsubsidized Loan or Federal Direct PLUS Loan. Unsubsidized
loans allow the borrower to add interest to the total amount
borrowed after graduation, but beware, as this leads to owing
even more money when it comes time to start paying off the loan.
Direct PLUS Loans provide graduate students or parents the
opportunity to borrow the total cost of attending college, minus
other financial aid received.
Unlike the loans mentioned above that are sponsored by
the federal government, state and private loans are sponsored
by banks, colleges, foundations, and state agencies. The U.S.
Department of Education manages all college loans available by
state and requires students to be in-state residents or enrolled in
a college in that state. Private loans are an option for borrowers
but come with terms and conditions that may not be as favorable
as federal loans. Private loans also require a cosigner who is
responsible for repaying the money if the student fails to do so.
MANAGING DEBT POST-COLLEGE
Student loan debt continues to increase and has become a
burden on both graduates and the U.S. economy. There are a
variety of loan repayment options for students. Here are some tips
on how to approach repayment.
• Figure out what you’ll owe and start to save early – Creating
a budget early will allow you to build a solid foundation for
repayment after graduation. Setting aside money each month
toward future savings for repayment will set you up for success
come graduation day.
• Understand your repayment options – There are several
different options available to start paying off student loans
based on the type of loan you received. Common federal loan
plans include standard, graduated, extended, or income-based.
Standard plans are payments in fixed amounts that ensure loans
are paid off in 10-30 years (these payments are often very high
for new graduates). Graduated plans are payments that start out
lower and increase every two years, also ensuring loans are paid
off within 10-30 years (based on loan). This plan assumes you’ll
continue to make more money as you continue your career
path, so additional money is allotted to repayment as you go.
Extended plans may be made in a fixed amount or a graduated
amount and ensure payment in full within 25 years. Income-
based plans take 10-15 percent of your discretionary income
and are recalculated each year. Once you are married, your
spouse’s income will also be considered, if filing jointly on tax
returns. Any outstanding balance on the loan will be forgiven
after 20-25 years.
• Consolidate for ease – If you have multiple federal loans,
consolidating them into one can make repayment easier.
But there may be fees or other conditions associated with
consolidating, so be sure to do your research.
• Is forgiveness an option? Some programs offer loan
forgiveness if you meet certain criteria or work in a particular
field. People in government, nonprofit, and other public service
jobs may have the remainder of their loans forgiven after 10
years of service. Additional forgiveness options are available for
nurses, teachers, AmeriCorps and Peace Corps volunteers, and
some state and private programs.
Continued on next page >
MARS AREA
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FALL 2019
19