As August is wrapping to a close, many fresh-faced college students are descending into their dorms to obtain the holy grail known as a college degree. Many believe they MUST get a degree, but there’s an even bigger debate raging on: is it worth it? Student loan debt is crippling so many people.
Currently in the United States, there are millions of people who can’t afford to move on with their life after college. They’re so entrenched and burdened with student loan debt that becomes impossible for them to move on with their life.
Student Loan Debt in the Trillions
If you look at the top three debts most Americans hold, student loan debt would be number two, weighing in at over $1.4 trillion. The first would be mortgage debt at $9 trillion. This is the only issue to hit college students once they graduate. They then must spend the next decade of their lives seeking out student loan forgiveness options.
There’s a report by Bloom Economic Research reveals the numerous challenges faced by people who have a ridiculous amount of student loan debt. Families are left with options before and after school to attempt to pay for higher costs.
Also: http://financialhelpers.com/trump-administration-signs-massive-student-loan-forgiveness-bill/
Many families tried to tap into their home equity to try and pay for their children’s college, but after the economy went down and home values tanked, this only left them with a few options. It was these options that caused the inflation of higher college costs. Now, student loan debt is at its highest level it’s ever been in this country’s history.
Tuition Rising Even as Student Loan Debt Rises
Even as student debt becomes an epidemic, and more students seek out student loan forgiveness programs after they graduate, prices keep going through the roof. Between 2007 and 2017, the overall cost of college has risen 176%.
It breaks down like this:
-CPI rose by 21%.
-Textbooks up 88%.
-School housing up by 51%.
-Student debt has tripled since 2017.
Student Loan Payments Hamper Economic Growth
It’s not just student loans that are growing. The cost of literally everything else is going up as well. The average rent is up 2.8% alone from last year. The average cost of rent per month in the United States is $1,400, according to RentCafe.
If you add on the average student loan payment of $351, yet people are spending as much as $1,800 even before they buy groceries and turn on the lights. This is your lucky enough to jump into a career as soon as you graduate. Many Americans aren’t that lucky.
Student loan forgiveness is really the only hope a lot of Americans have. The government continues to create programs to help struggling students, and there are better options for paying off debt sooner. Rather than plugging away at the debt for a decade and putting off important life events, there are options you might not be aware of.
Calling Financial Helpers today can help create a program that works for you to pay off student debt sooner, and even offer student loan forgiveness to considerably reduce your overall debt and payments. To learn more, call the number below:
Student Loan Debt Problems Add Up
Nearly half of all people between the ages of 18 and 34 have student loan debt. This debt averages out at around $33,000 per person, but can be as high as $150,000. This is the age when most people should be enjoying their careers, buying a house, and starting a family.
But, if you have a ridiculous amount of debt, it will impact your ability to do incur more debt to do those things. It can cause your credit score to lower, and keep banks from offering a mortgage and/or vehicle loan.
It’s sort of like a vicious cycle. More debt means less people buying things. Less people buying things hurts the economy, so jobs are lost. When economic growth is stagnant, wages stand still. When inflation occurs, the price of everything gets more expensive, but wages are still stuck and debt keeps piling up.
The Impact of Student Loan Debt
Right now, baby boomers are forced to care for their children who can’t afford to move out on their own. The birth rate has fallen nearly 30% because marriage and starting a family has been pushed off until things are better.
According to Jerome Powell, the chairman of the Federal Reserve, this vicious cycle is only getting worse.
“You do stand to see longer-term negative effects on people who can’t pay off their student loans. It hurts their credit rating, it impacts the entire half of their economic life. As this goes on and as student loans continue to grow and become larger and larger, then it absolutely could hold back growth.”
Something has to change. The scary thing is, the more relief the government finds for students, the more colleges decide to up their prices. Student loan forgiveness might just be the only option they have left.
