It’s Time to Get Serious: Student Loans
Student loan debt has gotten out of control in this country. As of 2017, the total amount of student loan debt has surpassed $1.4 trillion! It has soared in the last 13 years from $260 billion; a 438% increase. The average student comes out with debts of $37,172. Most of the debt is student loan debt coupled with even more toxic credit card debt.
College doesn’t equal a job anymore; it does however come with a pile of debt.
Since 1980 tuition at public universities has gone from $2,100 to $9,500 a 352% increase. Private colleges have gone from $9,500 to $32,410!
In a recent study approximately 70% of college graduates leave with debt levels around $38,000. That amount of debt is not easily manageable and comes with other costly impacts like, not being able to purchase a home or start a business, delaying marriage, and not saving for retirement. In fact home ownership of individuals under 35 has dropped over 21% since 2009.
To make matters even worse, economists project young adults will have to save twice as much in retirement than their parents to maintain a comfortable lifestyle in retirement.
It’s not all bad though – college graduates can expect to make about $1.3 million more over their lifetime than those who didn’t get a degree. Keep in mind, you will need to earn about $47,000 per year if you’re single or $52,000 if you’re married in order to afford the average loan payoff.
You need to ask yourself is it worth it anymore? There are a lot of high paying jobs that do not require a degree.
If you have student loan debt or are about to enter college, it is important to have a plan.
- Apply for aide.
- Always pay your highest interest rate debt first.
- If you can afford to make an extra payment, do it. Talk to your lender and explain you would like to make an additional payment a few times per year.
- You can, in some cases, apply for loan forgiveness.
- Look at refinancing!