A college student graduating without loan debt is a rare case, as seen by loan statistics. In the U.S., the number of people leaving college with significant debt is a little over 70 percent

Yet, for many, student loans are necessary to succeed in their chosen field. Is the cost of student loans worth it? 

The True Cost of Student Loans

Before you can decide whether it's worth racking up debt, you'll need to know the true cost. 

To find out the true cost, you'll need to look at a few of the factors that make up the whole of student loans. How much do you need, how much is the average, and how long do they take to pay off?

The trouble is, student loans are easy to say yes to without knowing the reality of them. 

True Cost Student Loans

1. How Much is the Average Student Loan?

The average American has around $37,000 dollars worth of student loans when they graduate.  

The numbers will differ from student to student, and it will depend more on the college you choose. Some tuition programs are higher than others. And some students can help cut the cost with scholarships.

The numbers are never final, either. You have to be wise about interest rates or else you'll face an endless amount of accumulation. 

2. Subsidized vs. Unsubsidized  

There are two types of loans that are critical to remember. One is a subsidized loan, and the other is an unsubsidized loan. The difference between these two is when the interest starts. 

The Direct subsidized loan is where the government pays your interest until graduation. The Direct PLUS (unsubsidized) starts adding up the moment you accept it. 

3. What are the Interest Rates?

It's important to know the average interest rates for a student loan before you continue. A majority of interest rates are going to start somewhere around 5 percent

The plus for these interest rates is that the rate for a specific loan will never change. Meaning, each loan you have for a semester will stay the same. 

4. How to Start Repaying Your Student Loans 

This is when the cost of borrowing money starts to take shape. Before the repaying process, loans are abstract, and you hardly notice them. Only when you're faced with paying them back does it start to seem real.

Starting a payment plan as soon you graduate will keep you from getting behind on your payments. Falling behind is the last thing you want to do. When you find a loan management service, you can start budgeting. 

But what happens if you don't quite have the funds you need yet? What if the unexpected happens and you can't afford to pay back your loans?

The good news is there is student loan forgiveness for those who qualify. You can read how to resolve student loans and find out if you qualify for debt forgiveness. 

More Cost of Living Information 

Now that you know the exact cost of student loans, do you think it's worth it? Will you take on the interest rates and lenders to further your education? Remember, you can always find a way to pay back the money if you plan ahead. 

Are you afraid student loans may have damaged your credit? Take a look at these great ways to repair your credit.