College debt is becoming more and more popular these days. Students go to college and for one reason or another, they are unable to keep up with the tuition or fees. Even with the help of a scholarships and part-time jobs, the high costs and cultural influences often keep students from going into debt. Part of the problem is that students in college don’t realize the ramifications of not avoiding debt while they can. Instead, they college student loans like they were trophies and fail to understand how to be debt free. They keep themselves from learning an important life lesson like working extra hours to avoid debt.
Why College Debt is a Problem
Whether you recognize it or not, college debt is a significant problem. Students may learn how to pay off debt as a result of accumulating student loans, but that should not overshadow the impact that college debt can have on a person.
Lack of Freedom - One of the worst things that college debt can do to a person is prevent them from following their dreams. Instead of graduating without any limitations, students are graduating and forced to start paying their student loans within 6-12 months after graduating. With the economy as bad as it is right now, the difficulty in paying off debt becomes even harder. Graduating with debt means that you can’t follow your dreams. The primary focus is instead making enough money to pay your bills AND start contributing towards your debt. This type of decision can be systemic too – meaning that it becomes easier to sacrifice your other dreams just for a little extra money. Think of the last time you worked overtime or did a side job just for a little extra money. It may be a small sacrifice at first, but it builds up and leads to a life of unhappiness.
Longer Working Career: While many people emphasize the larger salary that you will receive as a result of going to college, they fail to look at how much you will be paying for school when you take out loans. You not only pay for tuition and fees, but are forced to pay the interest on this amount over the course of 10, 20, or even 30 years. This is causing major problems for many and forcing people to work longer careers. Those who retire early are most likely those who were able to save money early on.
Whether you realize it or not, getting student loans now can hurt you for life. You may learn some hard lessons from having to pay off debt, but it could prevent you from living debt free. No one needs this kind of pressure for a majority of their life. Do yourself a favor and avoid it at any cost.