As we hear more and more about the issue of student loans, it doesn’t seem like there’s a clear answer in sight. Many people are in such a situation at the moment and even more are probably going to get themselves into debt in the near future too, which will impact their credit score. This makes it important to take a realistic look at the issue from a collective point of view. We can’t just turn our heads and pretend the issue isn’t there – today’s indebted students are tomorrow’s workers who could be out on the streets.
The Importance of Proper Financial Education
It looks like one of the biggest issues we’re facing right now is that nobody is teaching today’s students enough about their personal finances and how to manage serious debt. While there is a wealth of information on the Internet, few people ever reference it seriously, and this has created a situation of severe ignorance across the board. Resources like these can make it very easy to stay informed on current financial and related affairs, but we don’t see that many people using them. Combine that with a young mindset that’s predisposed to impulse purchases, and we have a real problem. Which leads us to the next point…
Responsibility and Restraint
Student debt is nothing to be afraid of and it can be managed quite realistically, but it’s important to approach your life from a slightly different perspective if you want to make sure that it won’t impact you too severely. One must be more organized and restricted in what they’re buying, and plan ahead more diligently. On the bright side, this can teach you some good habits and can allow you to be a more responsible consumer,in the long run, a quality that many people are sadly still lacking even in their 30s and 40s. These people then go on to have kids of their own, educating them very little, creating a vicious cycle that affects us all.
Credit repair experts at Lexington Law provide this insight on debt repayment:
“The reality is that you may not be able to buy a home and save for retirement and have all the fun you want while paying down your student loans,” they state. “Much of what you’ll be able to pay down depends on your employment and the amount of income you’re earning. Instead, pick one or two goals to incorporate into your budget. As you earn more income, you can increase your goals and the amount you put toward them. Just don’t let your student loan dampen your zest for life or rule all your financial decisions.
Long-term Viability of Certain Degrees
Another point that’s very important to consider is how viable your current degree choice is in the long run. Many people take out huge loans so they can study degrees of questionable potential, and end up jobless a few years later when they can’t find any real job opportunities. What usually happens then is that those people switch to a completely different career path, one that they could have followed in the first place, just so they can repay their huge debts. This can lead to a very unpleasant lifestyle with a low level of satisfaction.
Student debt is not something that has to ruin your life, but it’s also not a small deal. It has to be treated very responsibly, and those with the right attitude should have no problem finding themselves in a clean situation a few years later. On the other hand, those with an irresponsible attitude to their finances are setting themselves up for disaster by taking out a student loan, and it’s hard to tell who’s to blame.