Tackling the Question of Student Debt
For some people, back-to-school season means thinking about higher education, and with that comes important questions: How do you know if you need a college degree? Is your future career worth the money? And if so, how are you going to pay for it?
Check out this guide to learn how to find the answers and best prepare for what comes next on your education journey.
Choosing Higher Education
The first step is determining if higher education right for you. There are a few keys to consider:
- Cost: Can you afford it?
- Necessity: Does your chosen career require it, or can you go to a trade school?
- Return on investment: Is your potential job’s median salary versus degree cost worth it?
If you’re unsure what you want to do, take a gap year or go to community college to complete general education requirements at a lower cost, giving you time to figure things out. On the other hand, if you’re confident you want to go to college, do your research. Look at multiple locations that offer your degree and compare costs, including tuition and housing.
Understanding Student Loans
Once you’ve decided higher education is the path for you, it’s time to think about paying for it. Every year, tuition continue to climb—since 2010, it has increased by over 36%. If you can’t afford to pay out of pocket, there are two types of student loans you can take out:
- Federal loans, which ae funded by the government
- Private loans, which are offered by banks, credit unions, and other private companies
Federal loans have many benefits, such as fixed interest rates, repayment requirements starting after you graduate, and potential subsidized loans, meaning the government will pay your interest while you’re in school.
It’s highly recommended to apply for federal loans first, and if you don’t receive enough, you’ll need to find private loans to cover remaining costs. There are endless options to choose from, so like you did with college, shop around until you find what works best for you. Also keep in mind that your credit score and current income are both factors in how much you’re offered and what interest rate you’ll receive. If they aren’t robust enough, you might need a cosigner. Plus, only request what you need and don’t use the loans to pay for anything that isn’t school related.
Conquering Student Loan Debt
If your loans start to feel too burdensome after graduation, there are steps you can take to help ease the pressure. For instance, federal loans offer income-driven repayment plans that may be more affordable than standard plans. Rather than a consistent monthly payment, they set different repayments annually, taking into account your income and family size.
Those with private loans have options too:
- Figure out what you can pay: Evaluate your circumstances to see what you can afford. Review other financial obligations and adjust your budget to determine what you can reasonably contribute each month. Avoiding the debt altogether leaders to higher debt as interest accumulates.
- Contact your lender: Lenders often prefer to have at least some money coming in than nothing at all, so see if yours is willing to set up a new plan with lower payments. If you can’t afford to pay anything, ask for short-term relief options such as temporary forbearance, hardship deferment, and interest-only payment plans.
- Look to refinance: Find another company to refinance your loans with—a lower interest rate could save you thousands over time.
Whether you already have loans or expect to have some in the future, student loan debt can be a scary and overwhelming topic, but it’s not a burden you have to handle alone. Reach out to your local credit union to receive personalized help for your situation. The better you understand student loans, the more informed their decisions will be at every stage.
Adapted from the Pennsylvania Newsmakers segment originally aired on August 23, 2026.