Burdensome Student Loans
When most people think of “debt,” they typically think of consumer debt, car loans, and home mortgages. However, student debt is the second biggest debt sector in the United States, reaching $1 trillion. In fact, student debt is the only debt sector to massively grow since the crash of 2008.
Holding a job that provides a steady income is not a prerequisite for taking out a student loan. It is simply expected that students will pay off their loans when they get a job out of college. However, jobs are not so easy to come by – and Millennials are often finding that they have too high expectations and will not accept jobs that they feel are “beneath them” or that do not pay enough.
Student loans are a drag on the economy. Georgia has the second highest student loan debt in the nation, falling short of only the student debt in Washington, D.C. When young Americans are busy paying off student debt, or they default on their student loans, the economy suffers.
- Economic growth does not grow. Those paying toward their debts are not making any big purchases. Surveys have revealed that those with high student loans delay car purchase, home purchases, and even put off marriage in order to deal with their student loans.
- Paying off high loans = not saving for the future. 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 places a huge burden on the entire US economy. If people live into their 70s, 80s, 90s+ and do not have retirement, who pays for their living and health expenses? The nation does. This is a billion-dollar debt sector that burdens the economy each year.
- Expensive college degrees are not equating to expensive paychecks. Many research studies have been performed to weigh the cost of a college education to its worth. Studies reveal that students who start college as an 18-year old will not see a return on their investment until age 37.
Student loans are burdensome to everyone, especially those who graduate from college and are just “starting out” on their own financially. If you have significant student loans that are hindering your financial future, contact Gingold & Gingold, LLC. Expert counsel can save your entire future.
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