How to face a mountain of student debt

As college tuition rises and the job market remains tough, student debt is becoming a mounting problem in Arizona.

Miranda Clephane always knew going to college was something she had to do.

We hear it all the time: a college education is one of the best things you can do to ensure your financial future.

“They gave me a $20,000 loan. Put it right in my checking account,” Clephane said. “I had no idea how hard it was going to be to pay it back.”

Now, she says she owes $90,000 in student loans in all – and she can’t see a way out.

“I don’t see myself ever being able to buy a house,” she said.

The average Arizona student who graduated college in 2010 has almost $27,000 in student loans to repay.

And, in 2009, our state had the highest rate of defaults on student loans, partly due to the number of students defaulting on loans from for-profit universities like the University of Phoenix.

Getting out of student debt is tough, but Scott Talbott with the Financial Services Roundtable , says lenders are ready to compromise.

“They’re spreading out interest payments, they’re lowering interest payments, they’re waiving fees, they’re changing the terms to make them more favorable,” he said.

So, what’s Talbott’s advice for students buried in debt? Shop around. Find the best interest rates and make sure you understand what you’re getting yourself into before you take on a mountain of student loans.

For more tips, you can start at www.studentloans.gov , where the U.S. Department of Education has complied resources for getting and repaying loans.

Are you fighting to repay your student loans? Email me or go to my ABC15 Facebook page and let me know.