How Can I Get Out of Student Loan Debt
Right out of high school, many students end up attending college with the dream of landing a high paying job. However, such a dream rarely turns into a reality for many college grads, since they are left with thousand of dollars in student loan debt. With a college degree and no golden job opportunities on the horizon, many grads are forced to changed their lifestyles due to student loan debt. To pay off loans, grads put off marriage, children, and other recreational activities that may otherwise contribute to their financial burden.
Short Term Solution With Student Loan
While student loans may be a short term solution for paying your tuition, it may only end up being a long term financial challenge. Take for instance, over the course of four years Jodi Romine received $74,000 in student loans for a degree in business management which hasn’t granted her any rewarding job opportunities. Upon graduation Romine landed a job as bank teller. Now 60 percent of her check is allocated to pay her $900 monthly loan payments. With her stringent financial situation, she has been left with no other choice; but to hold off on pursuing her career, getting married, and having children. Her fiance, the other hand, has to allocate 40 percent of his paycheck to his student loans. Besides their full-time jobs, both Romine and her fiance have had to work second jobs. They have also had to put off purchasing a home; visiting family members; and going on dates.
Student Loan Financial Terms
In a study conducted by the Federal Reserve Bank of New York, the findings revealed that 37 million borrowers were owing on their student loans since the third quarter of 2011. Of these borrowers, approximately 5.4 million had one payment past due, thus bringing the total amount past due to $85 million. Student loans carry long term financial setbacks. The National Association of Consumer Bankruptcy Attorneys attested to such setbacks in a survey. They found that student loan debt had led many people to put off making major purchases or starting a family. To add more validity to such findings, Suzanna de Baca, vice president of wealth strategies at Ameriprise Financial, stated that graduates were returning home, while others opted to have roommates to decrease their overall expenses. Such a lifestyle, according to de Baca, prolongs the time for people to acquire a down payment for their house.
Get Student Loan After Graduation
Post-college life for many graduates is often filled with responsibilities such as rent, full-time jobs, and bills. Student loans are added to this list six months after graduation, thus making a grad’s life even more difficult. As a result of this educational investment, grads may encounter a wide array of setbacks. To pay off loans, grads put off marriage, children, and a host of other activities. Not only do these loans hinder a grad’s family life and career, but also their finances and credit. Grads are unable to secure credit cards, car loans, or mortgages. If they fail to make loan payments on time, their accounts may end up in the hands of a private collection agency. In some cases, they may even their wages garnished.