As Congress discusses the new relief bill to help struggling families, Senate Majority Leader Chuck Schumer along with other Democratic legislators reintroduced a resolution calling on Biden to forgive $ 50,000 in student debt for all borrowers. How can student loan debt disrupt your whole life?
The decision of Democratic leaders to put student loan forgiveness among their priorities demonstrates how important this debt is for many American families and individuals and how difficult it is sometimes to get out of it.
Asking for a student loan may seem like a good idea when you're young, but there are many people who are never able to pay off the debt. So, if you are contemplating this option, read this article before taking the big step.
1. You may not be able to follow your passion
An enormous amount of Americans name student loan debt as a top factor in their career choices. Borrowers are often left with little choice but to pursue careers that will assure an income high enough to afford their student loan payments.
2. If you hate your career, you might not be able to escape
Having a student loan to pay back, can leave you with no choice but to stick to a career you may find you don’t like. Many graduates remain trapped by their debt in careers that they hate.
3. You will end up paying much more than what you borrowed
If you don’t take into account how the constantly accruing interest will affect the total amount you owe, and only make minimum payments every month, your debt will increase at a pace difficult to catch up with.
4. You may have to move back in with your parents
More than one in three millennials live with their parents, a phenomenon that has grown markedly in recent years. The Federal Reserve found that 30 percent of that increase was due to the changing debt loads of young adults, including student loan debt.
5. It can delay getting married or starting a family
One in five former students puts off marriage due to student loan debt, and nearly one in three postpones starting a family for that reason, American Student Assistance reports.
6. You might not be able to buy a home
A joint study by American Student Assistance and the National Association of Realtors found that 83 percent of millennials who don't own homes blame student debt for their inability to buy.