Americans are now faced with student loan debt that tops $1.2 trillion. More than 70 percent of U.S. college students who graduated in 2014 had to borrow money in order to obtain their bachelor’s degree, and among them, the average student loan debt burden was $33,000, making 2014 the most indebted class ever.
As the statistics show, student loan debt is a problem that too many graduates are facing. And the higher the debt burden, the higher the monthly payments. So what can be done? The best way to deal with student loan debt is by making higher payments each month and paying your burden down as quickly as possible. Unfortunately, for many that isn’t a realistic option. If it’s not a possibility for you, you may be considering borrowing money to pay off your student loans. Before you do, it’s crucial to consider all aspects — the positives and negatives — that come along with borrowing money.
To help determine what’s best for you, take a look at these various scenarios and the potential consequences that come along with borrowing money to pay off student loans.