
<figure class="wp-block-image size-full"><img src="https://growthandfaith.com/wp-content/uploads/2022/07/pexels-photo-207691-1.jpeg" alt="brown and black wooden chairs inside room" class="wp-image-473"/><figcaption class="wp-element-caption">Photo by Pixabay on <a href="https://www.pexels.com/photo/brown-and-black-wooden-chairs-inside-room-207691/" rel="nofollow">Pexels.com</a></figcaption></figure>



<p class="wp-block-paragraph">It’s your senior year in high school. I am so proud of you and all of your accomplishments so far. Just know that you will achieve many more in the future. I know you are excited about applying to college, and you should be. It will be one of the most memorable experiences of your life. You are going to make some lifelong friendships while in college, learn new topics, and develop new perspectives that will excite, inspire, motivate, and activate your passion for social justice and social impact work. You will have the opportunity to travel and meet new people. </p>



<p class="wp-block-paragraph">You are on your way to becoming a beacon for your community. Know that you are loved and blessed. ;</p>



<p class="wp-block-paragraph">Be excited, but also be cautious. There’s an unknown threat, a trap lucking above your horizon that you don’t know about and won’t feel the effect until 10 to 13 years later. It will hunt your dreams and make you anxious, and that’s DEBT, specifically student loan debt. It is a trap.</p>



<p class="has-secondary-background-color has-background wp-block-paragraph">Student Loans Status</p>



<p class="wp-block-paragraph">I owe $70,000 but graduated with $51,440 in student loans. Federal secured and unsecured students loans. Aside from taking advantage of the <a href="https://www.edvisors.com/student-loans/repay-student-loans/forbearance/" data-type="URL" data-id="https://www.edvisors.com/student-loans/repay-student-loans/forbearance/">administrative forbearance</a> provided while my loans were being transferred from Great Lakes to <a href="https://myfedloan.org/" data-type="URL" data-id="https://myfedloan.org/">FedLoan</a> and the <a href="https://www.ed.gov/news/press-releases/biden-harris-administration-extends-student-loan-pause-through-august-31" data-type="URL" data-id="https://www.ed.gov/news/press-releases/biden-harris-administration-extends-student-loan-pause-through-august-31">administrative forbearance given as a result of the COVID-19 pandemic,</a> I have made payments each month under the <a href="https://studentaid.gov/idr/" data-type="URL" data-id="https://studentaid.gov/idr/">Income-Driven Repayment</a> plan.</p>



<p class="wp-block-paragraph">For five and half years, as I was making payments, instead of the loan amount going down, I owned more money due to the daily interest rate, up to $13 at one point. I did not realize this was happening until I started to track and monitor my income, debts, and assets using a budget. I was stunned when my debt balance increased by $300-400 more than I owed the previous month—<strong>Where is the justice in that?</strong></p>



<p class="wp-block-paragraph">As for student loans—I know your financial situation is not the best. Your parents are immigrants and have not lived in the country for decades and have built generational wealth. They cannot financially support the financial aspect of your higher education but know that they would if they could. </p>



<p class="has-secondary-background-color has-background wp-block-paragraph"><strong>A few things to keep in mind:</strong></p>



<ul class="wp-block-list" style="color:#242527"><li>Protect your parents at all costs from predatory lenders by not having them co-sign your student loans. The loans are your obligations and responsibilities.</li><li>Take loans for what you truly need to cover tuition, room, and board.</li><li>Don’t worry about purchasing books since they can be borrowed from the library—Plan and save as much as possible.</li><li>Work full-time in the summer to earn money to use during the academic year and to the extent that you can begin paying off your unsecured loans while in school.</li><li>Do not pay for your summer classes, internship, or Global Student Tour to Paris and London—even though you will learn a lot, find another way aside from taking out the loans.</li><li>Watch out for bad financial advice from your friends and school advisors regarding how to pay for your education.</li></ul>



<p class="has-secondary-background-color has-background wp-block-paragraph"><strong>When it comes to grants:</strong></p>



<ul class="wp-block-list"><li>Apply for all the grants you are eligible to receive and those you don’t think you are.</li><li>Advocate for more resources from your school and the federal government</li></ul>



<p class="has-secondary-background-color has-background wp-block-paragraph"><strong>As for scholarships:</strong></p>



<ul class="wp-block-list"><li>Take the time to write as many scholarship applications as possible and leverage your personal experiences.</li><li>Apply for the honors program in your admission—Tuition is covered for students that are accepted in that program. You had the grades and aptitude and made the connection to get in freshman year. Still, you lost the timing because you are an incredible high school student and went above and beyond to earn college credits, which made you a second-semester sophomore when you tried to apply. I advise you to wait to claim those AP credits until after you’ve submitted your application to the program. Don’t stop being awesome.</li></ul>



<p class="has-secondary-color has-text-color wp-block-paragraph"><strong>Once you graduate college, pay as much of the loans as you can during the summer—I cannot stress that enough. Get extra jobs, if need be, but work as much as possible to drop down the unsecured loan balance.</strong></p>



<p class="wp-block-paragraph">As for graduate school, delaying it by a year is okay if you do not receive enough grants or a student assistantship. Spend that year working, earning, and saving as much as possible.</p>



<p class="wp-block-paragraph">If you take a break, you may have to move out of public housing, but trust me—if you work hard for that year and stay focused, you will be just fine. Take advantage of the <a href="https://www.hud.gov/program_offices/public_indian_housing/programs/ph/homeownership" data-type="URL" data-id="https://www.hud.gov/program_offices/public_indian_housing/programs/ph/homeownership">homeownership opportunities available for public housing residents</a> to purchase your own home, which will be cheaper than paying your rent. You missed out on that one when you moved out without being informed about this program. I know you are probably skeptical right now, but you will manage.</p>



<p class="wp-block-paragraph">Lastly, once you graduate, apply for the <a href="https://studentaid.gov/articles/student-loan-forgiveness/" data-type="URL" data-id="https://studentaid.gov/articles/student-loan-forgiveness/">Student Loan Forgiveness Program</a> as a nonprofit worker. I have been actively asking questions and filling out any necessary paperwork to stay eligible for that program. Once the administrative forbearance for COVID is approved, I will have less than three years before my loans become eligible for forgiveness. I hope the program the government will honor it.</p>



<p class="wp-block-paragraph">As a first-generation immigrant college graduate, student loans were marketed as one of the two options you had to earn a college degree. You know better now.</p>



<p class="wp-block-paragraph">My final thoughts are a repetition of what I noted above. Know that you are loved, and you are doing just fine. You’ve put some things into place that provide you with some security in case of an emergency, and please start budgeting and learning about financial literacy.</p>
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Thank you for sharing your perspective. I also wished I knew the same things.