As students start their 4-year climb through high school, most of them already know they want to go to college. Everything they do from that point on is to prepare them for college life. But major student loan debt is making millions of people question whether if it’s really worth going to college anymore.
44 million Americans hold over $1.53 trillion worth of student loan debt. This is a number that is due to climb into the stratosphere. College tuition is only getting more expensive. The average person cannot afford it on their own without getting a loan. Interest rates combined with low entry-level pay creates a perfect storm of debt and struggle.
YouGov did a survey and found that 1/3 of people who obtained a student loan felt it wasn’t worth the cost. Yes, they did receive an education, but having that degree didn’t translate into better jobs. And that’s part of the problem. Many colleges make dishonest claims about exceedingly high job placement rates.
More often than not, those colleges are more expensive. They use these tactics to draw in desperate people who want to support their family. They prey on their belief that a college degree will get them a better life. Yet, all they end up doing is burdening themselves with student loan debt.
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Education is the Key to Solving Student Loan Debt Problems
If you have an abundance of student loan debt, you don’t have to suffer in silence. The key to fighting back is educating yourself on your options. Thankfully, Financial Helpers is here to help you do just that. We create daily content to help students overcome this burden. But, we’re not the only ones who recommend students remain educated on their options.
Ameritech Financial came out last week and shared the same sentiment. Ameritech believes that fewer students would regret taking out student loans and going to college if they knew more about repayment plans. Student loan debt continues to grow because these lenders deliberately mislead people to prevent them from easing the tension.
“It’s unfortunate that students have to take out loans in the first place,” said Tom Knickerbocker, Executive Vice President of Ameritech Financial. “But it’s even worse to go through college and come out feeling like it wasn’t worth it and now you have a substantial amount of debt to boot.”
http://financialhelpers.com/new-millennial-class-warfare-brought-on-by-student-loan-debt/
The average student leaves college with $37,000 in debt, with an average monthly payment of $300. That’s the average. Some are paying upwards of $1,000! That’s the cost of a decent mortgage payment. It’s forcing students to postpone major life decisions they hoped a degree would expedite.
To those who are just graduating and looking for work, paying $300 per month is no easy task. These days, degrees don’t automatically guarantee a job, much less a high-paying one. Gallup released a poll that said 36% of graduates would choose a different field of study if they knew their current field paid so little.
Extreme Pessimism
Students hold so much student loan debt that 37% don’t believe they’ll ever pay off their loans. 46% (nearly half) believe they are unable to see the end of their student debt problem. It can take anywhere between a decade and 25 years to pay back all that student loan debt. It’s not going anywhere anytime soon.
This is why Ameritech believes Income-Driven Repayment plans are extremely helpful. Before you start paying back loans, the lender will look at how much money you’re making and set monthly payments at what you can afford. It allows you to make more manageable payments, but it can still take 25 years to pay it all back.
“College is a huge commitment that requires a lot of sacrifice from students,” said Knickerbocker. “They shouldn’t feel like it was all for nothing, or like they’re still sacrificing so much of their lives after graduation. Income-driven repayment plans can help turn that pessimism to optimism: there is an end in sight to student loan debt.”
