Student debt has certainly wreaked havoc on the lives of many college graduates. By the time students graduate, their lives are essentially put on halt as they attempt to pay back their loans which they have borrowed throughout their college careers. Some are successful, but in 2013, less than 20% of all graduates were able to fully return their loans in ten years. Many graduates have accumulated so much debt to the point that their debt permeates their lives and impacts them both financially and socially.
The financial aspect is staggering. In 2014, average graduation debt surpassed $30,000, a 5% increase from 2013. Additionally, because interest rates are currently higher than those of auto and home loans, graduates who are unable to pay their back their loans often find themselves accumulating even more debt, naturally. Coupled with poor job prospects and decreasing wages, students are only finding it harder than ever to pay-back their loans. Carrying such loans affects students financially, which include having to apply for welfare benefits, not being able to apply for mortgages or auto houses, allowing the IRS to withhold paychecks and even filing for default or bankruptcy. The financial obligations and sufferings are both massive and endless.
Unfortunately, student debt can even affect one’s life socially. Graduates who have become inundated in debt often find themselves having to depend on their parents for financial support. In such a scenario, students not only feel inadequate by social standards, but also must put aside thoughts about starting a family or even getting married. Sadly, student debt has also resulted in an increase in mental illness cases and suicide rates, further dragging graduates into a seemingly hopeless future.
The financial aspect is staggering. In 2014, average graduation debt surpassed $30,000, a 5% increase from 2013. Additionally, because interest rates are currently higher than those of auto and home loans, graduates who are unable to pay their back their loans often find themselves accumulating even more debt, naturally. Coupled with poor job prospects and decreasing wages, students are only finding it harder than ever to pay-back their loans. Carrying such loans affects students financially, which include having to apply for welfare benefits, not being able to apply for mortgages or auto houses, allowing the IRS to withhold paychecks and even filing for default or bankruptcy. The financial obligations and sufferings are both massive and endless.
Unfortunately, student debt can even affect one’s life socially. Graduates who have become inundated in debt often find themselves having to depend on their parents for financial support. In such a scenario, students not only feel inadequate by social standards, but also must put aside thoughts about starting a family or even getting married. Sadly, student debt has also resulted in an increase in mental illness cases and suicide rates, further dragging graduates into a seemingly hopeless future.