Student Loan Debt – Possible Demise for Future Generations

Personal Finance

Student loan debt is a common topic amongst younger folks these days. Last year it was reported that we spent more than 100 billion dollars and expect to exceed 1 trillion dollars in the upcoming year. Inflation has sky rocketed, making cost for tuition, books etc… almost impossible to purchase without student loans and government assistance.

Reports indicate that there is currently more student loan debt then credit card debt. What the younger generation is quickly learning, is that once they obtain that 100k degree and graduate, there isn’t a six figure job waiting for them. In others words, there is no gold at the end of the rainbow. Our economy is struggling now to keep our heads above water but who is considering the future crisis that we have at hand?

Our government has emphasized greater collection powers and unlike mortgages and credit card debt, student loans cannot disappear via bankruptcy. College Board has recognized that we are ultimately on a path of destruction and leading ourselves into more debt. This article isn’t meant to discourage anyone from acquiring a degree but to hopefully enlighten people on a topic that needs more consideration and thought when applying for these schools that literally require you to hand over your first born.

More and more educated people are being succumbed by “wage slavery”. This ultimately is delaying folks from leading their life like you typically would. This means purchasing your home, cars etc… later and most importantly delaying your 401k and retirement. One thing the younger generation must realize is that social security probably won’t be around for their retirement and people should be paying themselves before anyone else.

I took a moment to recommend a few tips that may help save money when considering your education:

1. Scholarships – Work hard in high school and keep your GPA as high as possible, speak with your advisor about participating companies offering scholarships. In some instances you can get a full ride to an “A” rated school.  Imagine having zero debt upon completion of your degree. (Some would kill for this) It does exist but requires extreme dedication and hard work.
2. Government Grants – Another great opportunity that people have is to apply for grants that don’t require repayment as long as certain terms are met. A popular financial aid is the FASFA. Generally speaking it’s simple to complete online and only takes a couple days to receive feedback if you qualify.
3. Community College – you can save thousands by earning your associates at a community college and then transferring to a university to obtain your bachelors degree. So many people over look this, because they want to fit in with their peers and be considered “cool”. Think with your pocket book not your ego in this instance.

Hopefully this will shed a little light on where we are headed and maybe help people to take in consideration possible future ramifications, for not just yourself but the economy as a whole. We can’t keep relying on the government to save us, we have to start taking responsibility for our actions and if we don’t start focusing on this issue, I GUARANTEE it will be a future problem for us all.