Worth the debt? New study on student loans

(InvestigateTV) — A NerdWallet study found 30% of borrowers feel college wasn’t worth it for the money they spent.

Around 20% report borrowing more money than they needed just because it was offered. Meanwhile, 31% said their student loan debt is preventing them from buying a house.

Kate Wood, a writer with NerdWallet, looked over the research and said despite the regrets and misgivings about the money spent, if you look at the glass half full that means 70% did find college worth it. 

“There are a lot of different reasons why people might have, you know, regrets now about the choices they made,” Wood said. “When for a lot of folks when they were 17, 18, 19, 20 years old.”

Wood said another interesting finding in the study is that almost 1 in 5 Americans with student loans keep the balance a secret from their significant other.

She said debt often comes with a stigma and the first step is forgiving yourself and losing the embarrassment. Wood says the second step is tackling that debt and getting rid of it.

“That might mean checking what type of repayment program that you’re on. Could you be on a repayment that is better for your financial situation right now or that better fits your financial goals?” Wood asked. “It could mean redoing your budget, your general household budget so you made a debt repayment plans for the student loans, and you are chipping away at that each month.”

Wood said those who are trying to tackle student loan repayment and not sure where to start should visit studentaid.gov. Log on and look at the loan simulator – it will show what it would look like if you went on other plans, such as how much monthly payments would change and how the overall repayment timeline would change.

Those with private loans should also contact their loan servicer to ask about options.

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