Average Student Loan Debt Rises

CNN states that "The average debt load for the class of 2012 was $29,400 -- up more than 10% from the previous year, according to a report released Wednesday by the Institute for College Access & Success' Project on Student Debt." It's funny though, because colleges have been raising the tuition per year. As colleges become more expensive, family incomes' become less and less. According to research, seven in ten seniors graduate from college with student loan debt. Among them, a fifth of that debt was owed to private organizations. They usually have the highest interest rates, which equals more unnecessary money being paid. With that being said, a job after graduation is not even guaranteed. A college degree is much better than none at all. "Despite discouraging headlines, a college degree remains the best route to finding a job in this tight market. But students and families need to know that debt levels can vary widely from college to college," TICAS president Lauren Asher said. College debt is good debt. New Hampshire is reported to having the highest amount of average student loan debt. It racks up to $32,698. Needless to say you should shop around before drowning yourself in debt that will only increase.There are actually 5 myths of college costs that no one knows. Myth #1: Saving for college will hurt your chances of getting financial aid. Why? What matters most for federal financial aid is income. Myth #2: You can't afford a private college. Why? A $39,000 school may actually give so much merit aid to a good student that it would be cut down to $10,000, not including loans. Look for what colleges will give out the most money depending on the circumstance. Myth #3:  A liberal arts degree won't pay the bills. Why? The top-earning 25% of history majors earned a median annual lifetime income of $85,000 vs. $82,000 for computer-programming majors, per a recent analysis by the Georgetown Center on Education and the Workforce. Also, lower paying jobs typically have better job security, so it would pay off in the long run. Myth #4: Student loans will cripple you financially. Why? Education is important, and student loan debt is good debt. Keep in mind that the loan has to be paid off eventually, it is NOT free money. Be reasonable. Myth #5: Starting at community college, then transferring, is a great way to cut the cost of a BA. Why? Students who start at a community college are less likely to earn their bachelors' degree. Many 4 year colleges make it difficult for credits to transfer over. Check before you put down your first payment.