Americans now owe more than one $1 trillion in student loans.
That’s a big burden for young adults and their recession-strapped parents.
Now, a grant is helping Florida students understand how to manage their debt and keep at least some of them from defaulting on their loans.
The Florida College System Foundation financial literacy grant is awarding $10,000 to 10 Florida colleges for programs to help students with their money. The funding is from the Division of Florida Colleges and the Florida College System Foundation.
Grant winners are encouraged to create their own financial literacy programs or enhance programs already in place.
Students got a break this month when Congress acted to keep the interest rate on federal Stafford loans at 3.4 percent. The rate for subsidized undergraduate loans was scheduled to double on July 1st.
But consider this. A student who takes out $100,000 in student loans at 3.4 percent will have to pay almost $1000 a month to get the loan paid off within 10 years.
Many families aren’t prepared for the student loan burden, and that’s where the financial literacy grant comes in.
“Paying for college efficiently is an important step to a secure financial future,” said Florida College System Chancellor Randy Hanna. “This grant will help our colleges to get the word out about new and existing programs that will help students make the best decisions for their situation.”
Anyone can visit the Navigating your Financial Future website for helpful information about financial aid. The site is hosted by the Florida Department of Education’s Office of Student Financial Assistance.