Scholarship News

Risks of Over-Borrowing on Student Loans


June 24, 2021 2:08 PM
by Izzy Hall
College is expensive. That’s why a majority of college students take out student loans. Nearly 70% of the Class of 2019 took out student loans and graduated with almost $30,000 in debt. It’s a frightening statistic, and it’s part of why Scholarships.com exists to help students discover scholarships to pay for college. In general, scholarships do not entirely replace the need to take out loans. Responsibly borrowing for college can be a worthwhile investment, but for students and their families take out an abundance of student loans, the results can be frustrating – saddled with debt that’s increasingly harder and harder to pay off.

College is expensive. That’s why a majority of college students take out student loans. Nearly 70% of the Class of 2019 took out student loans and graduated with almost $30,000 in debt. It’s a frightening statistic, and it’s part of why Scholarships.com exists to help students discover scholarships to pay for college. In general, scholarships do not entirely replace the need to take out loans. Responsibly borrowing for college can be a worthwhile investment, but for students and their families take out an abundance of student loans, the results can be frustrating – saddled with debt that’s increasingly harder and harder to pay off.

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Middle-class families are most at risk of what’s known as “over-borrowing” on student loans. They may not know where to find scholarship opportunities or may only know of those for low-income students, like the federal Pell Grant. They’re more likely to take on riskier loans with higher interest rates. The end result is a large amount of student debt that will be both students’ and their parents’ responsibilities to repay.

Luckily, Scholarships.com makes it easy and simple to discover scholarships to help pay for college. By searching for and applying to scholarships, students could save real money on college costs without having to pay the funds back. Both they and their parents can reduce their amount of student loans taken on, which will decrease student debt once the student has graduated.

Scholarship providers are hoping to send motivated and talented students to college with generous scholarships. By using Scholarships.com’s free scholarship search, students will be matched instantly to great scholarship opportunities that fit their unique profiles.

No matter the financial background, all students can benefit from applying to scholarships. Every penny saved on college costs means an easier time post-graduation for students and their families. Try a free scholarship search today and start your college financial journey off right!

Get instantly matched to scholarships that meet your skillset, strengths and unique talents. Our search algorithms match you to scholarships that fit your profile. Access a complete list of college scholarships now by conducting a free college scholarship search at Scholarships.com.

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