New River Lunch and Learn aims to help college students use student loans wisely

The phrase “student loans” can bring fear and angst to many current and former college students. According to USA Today’s Project on Student Debt, bachelor's degree recipients carry an average of $30,100 in college debt.
This amount of debt can be burdensome and cause financial hardship for individuals. To help service members and their families entering college, the Personal Financial Management Program will hold the Bring your Lunch & Learn: Student Loans seminar at Bldg. AS-913 Longstaff St. on Marine Corps Air Station New River, Tuesday.
“It is an important topic to us because according to the 2017 annual report of the Consumer Financial Protection Bureau Student Loan Ombudsman, ‘44 million Americans now owe money [in student loans],’” said Corrinne McKenna, PFMP personal finance manager. “The CFPB estimates that combined federal and private student loan debt has reached roughly $1.4 trillion, mostly from federal loans. More than 8 million student loan borrowers have gone at least nine months without making a required monthly payment and are in a state of default. More than 1.2 million borrowers defaulted in 2016. Service members are a part of this population.”
According to McKenna, the class will discuss what options are available for borrowing money to pay for school, the difference between federal loans and private loans and the special programs available to service members to assist in financing their education among other topics.
This will be the first time the PFNP holds this seminar and plans will be in the making to hold it regularly if interest demands.
“Many people think student loans are always worth it, but they should be evaluated carefully just like any other loan,” said McKenna. “College tuition should be carefully evaluated just like other investments you make.”
Evaluation is important when deciding to use loans as a funding option. McKenna noted that many people don’t know the terms involved or the real cost of borrowing loans along with not knowing how long it will take to pay them back. If you already find yourself in debt, there are resources available.
“The GI Bill and certain loan forgiveness programs apply to service members,” said McKenna. “The CFPB student loan guide is also available to provide guidance as you consider student loans as an option.”
For more information on the PFMP, visit www.mccslejeune-newriver.com/finance.