Unprivileged high school students thinking of getting a university degree or people who completed a certain degree and are now contemplating to pursue a different profession usually find it difficult to finance their higher education.

This is due to the fact that higher education is becoming increasingly expensive, and the unfortunate thing is that quite a number of individuals are not in a position to afford it.

Each year, 20 million students attend college in the United States, and approximately sixty percent of those students borrow money to cover the expenses of tuition, textbooks and fees. With college being the first major financial decision many young adults make, you’d be surprised to find out how many are genuinely confused about the application process. Many do not consider that the amount borrowed and the interest rate of the loan could impact your finances for the rest of your adult life, long after college is over.

For those who are confused, the basics are this: the average student takes out nearly $30,000 in student loans over four years. With an interest rate of 9% annually, the student can expect to pay nearly $15,700 in interest over ten years, if it took them ten years to pay off the loan. That is a lot of money in interest, over half of the original amount borrowed. The monthly payment on this amount would be $380, which is a lot for someone right out of school and making entry-level salary.