Debt has become an almost accepted state of being for many Americans. Most ideas of debt circle around consumer debt, car loans, and home mortgages – the “typical” categories. However, many people are surprised to learn that student debt is actually the second biggest debt sector in the United States, reaching $1 trillion. Student debt is the only debt sector to massively grow since the recession in 2008.
When adults apply for a loan, they must prove that they have the income required to pay off that loan. Yet, holding a job is not a prerequisite for taking out a student loan – this puts young adults in significant debt right off the bat. Many college aged students simply expect that they will pay off their loans after college once they land a job. However, jobs are not as easy to come by; Millennials are becoming notorious for having too high expectations and not accepting jobs that are “beneath them” or do not pay enough.
Student loans are more than just a burden to students; they are a burden on the entire economy. Georgia has the second highest student loan debt in the nation, which greatly impacts the economy of our state. When young Americans struggle with paying off student loans, or they default on these loans, this causes trouble for everyone.
- The economy does not grow. Those committed to paying off their debts are not making any big purchases. Surveys reveal that those with high student loans delay car purchases, home purchases, and even put off marriage to concentrate on paying off their student loans.
- Paying off high student loans means young adults are not saving for their futures. According to the Center for Retirement Research at Boston College, “the percentage of workers in their 30s who likely won’t have enough money to retire is over 62 percent.” This leaves people needing to stay in the work force for many years past retirement age. Yet, those in their 60s, 70s, and 80s+ often find long work days burdensome, especially if they are in any type of labor-intensive career. Once older Americans can no longer work and do not have retirement, who then pays for their living and health costs? The nation does. This is a billion-dollar debt sector that burdens the American economy each year.
- Expensive college degrees are not producing high-earning paychecks. Therefore, many students find that the cost of a college education is not worth it.
If you are burdened by student loans, contact Boudreaux Law Firm today. We want to help you build a successful financial future.
Posted on behalf of Boudreaux Law Firm