Student Loan Debt Hacks and the Implications
Student loan debt has big impact on your life.
It is not just the Gen-X community. It also affects those in the Baby Boomer demographic also.
You may have heard this old saying “The times they are a changin.”
Student loan debt affects people of all ages. Defaulting on student loans can have implications on getting or not getting a job, mortgages, credit reports, having your driver’s license revoked and the list goes on.
I chose to share this information with you today because of the effect defaulting on student loans can have on our lives, especially in the United States, and it provides a vehicle for telling others about the possible implications.
Below are six possible scenarios in which unpaid student loans can impact your life.
1. A student loan debt discourages entrepreneurship, restricts career choices and leads to lower job satisfaction, and there was no consensus on whether it affected people’s earnings.
2. Student loan debt is likely to delay home ownership. The study also found that for women, student loan debt is more likely to mean putting off marriage and children.
3. People with student loan debt have lower levels of net worth.
4. They experience more financial distress.
5. Have lower savings, pensions and retirement funds.
6. Health, i.e., mental health, appears to be negatively affected, both during and after leaving school.
Ref. “Student Loan Debt Has Negative Consequences in Later Life,” Centre for Global Higher Education (CGHE), University of Michigan, dated June 11, 2018 by Anne Phillips.
More students are taking out student loans to pay for college and fail to recognize the consequences of borrowing money and they aren’t disciplined enough to ONLY borrow what is needed. As a result, they find themselves, late in life, with a huge debt and did not realize the implications or their responsibilities.
