Concerned about college debt

Hey guys, as I'm heading into my senior year, I've been really worried about college debt. It's a major decision factor for me. Who typically ends up holding most of the college debt? Any advice would be appreciated!

It's completely understandable that you're worried about college debt. It's one of the major concerns many seniors have. To answer your question, who ends up holding the debt largely depends on how the loans are acquired.

Federally subsidized student loans and unsubsidized student loans are typically in the student's name, and they are responsible for repaying them after they graduate or drop below half-time enrollment. Private loans could be in either the student's or the parent's name, depending on who takes out the loan. However, private loans often require a co-signer (often a parent), and that individual would be equally responsible for the debt.

If parents take out a Direct PLUS Loan from the federal government, then the debt is in their name and not the student's. Similarly, if parents take a loan against their home equity or other personal loans to fund their child's education, the debt would be in their name.

There are several strategies to mitigate college debt:

1. Apply to colleges with generous financial aid programs. Many institutions offer need-based aid, and some have policies guaranteeing to meet 100% of demonstrated financial need.

2. Apply for scholarships. There are thousands available from a variety of sources. Take time to research and apply to as many as you're eligible for—every little bit helps!

3. Consider attending a more affordable in-state public university or a community college before transferring to a four-year institution to save costs.

4. Ensure to fill out the FAFSA form annually to be eligible for any and all financial aid.

Remember, it's important to be proactive about understanding tuition costs, living expenses, and potential aid so you can make an informed decision about your future.