Respuesta :
Answer:
Students who graduate with debt may postpone major milestones such as purchasing a vehicle, purchasing a home, getting married, or choosing low-paying occupations such as teaching or social work.
Explanation:
Ways in which student loan debt can impact your life
Students who graduate with debt will suffer the consequences of their debt for years. Student loans can compel people to make difficult decisions and postpone major life events, in addition to the stress and worry that high amounts of debt can create.
Here are some ways in which student loan debt can have an impact on your life:
- May rush into a job to meet repayment requirements
- Lowering your net worth
- Delay borrower’s ability to buy a home
- Delay a borrower’s ability to start a family
- May impact your marriage
- Potential for poor credit if payments missed
- May cause people to skip out on attending college
- May delay life goals
May rush into a job to meet repayment requirements:
You must pay your loan bill on a regular basis if you have student debt. Depending on how much you borrowed, the bill might be considerable. Rather of waiting for their dream career, many students may be tempted to choose a higher-paying job, or simply any job they can find.
According to a study conducted by the American Student Association, over half of graduates believe their debts have hampered their ability to develop in their careers.
Someone without student debt may be able to be more selective and dedicate more effort to choosing a job they enjoy. They'd also be free to take calculated risks in order to increase their compensation.
Lowering your net worth
Few students finish from college with a large net worth, but those who avoid taking out student loans will have a net worth of around $0. If you graduate with student loans, your net worth is likely to be negative.
This isn't going to have an instant negative influence on you, but it might have a number of small consequences that you'll notice over time.
If you have a low net worth, you may find it difficult to make major purchases since you lack the necessary finances.
It can also make getting a loan more difficult.
While a college degree increases total career earnings by a large amount (about $1 million more than someone without a college education), it might take a long time for graduates to come out ahead of those who do not take on debt.
Delays borrower’s ability to buy a home
Borrowing money with a mortgage is one of the most prevalent ways to purchase a property. If you owe money on student loans, you already have one significant burden to pay off. It might be difficult to manage a house payment and a student loan payment at the same time. Debt might make it difficult to qualify for a mortgage in the first place. The influence of student loans on homeownership rates is seen in a research by the Federal Reserve. Homeownership rates drop by 1.5 percent for every ten percent rise in student loan debt. Delaying the purchase of a home, which is one of the main generators of wealth in the United States, can have a significant impact on a student borrower's capacity to expand their wealth.
Delays a borrower’s ability to start a family
It goes without saying that having children is costly. The average cost of raising a child from birth to 18 years old is $233,610. This equates to over $13,000 per child every year.
If you already have a tight budget due to student loan payments, adding another $1,000+ per month responsibility is likely to ruin it totally. Children can add problems and stress to a life that is already stressful due to debt.
This may cause many people to put off establishing a family until they have paid off their debts.
Can impact your marriage
Changing your salary for income-driven repayment programs, for example, can have an impact on your student loans. Your debt, on the other hand, may have a detrimental impact on your marriage.
Financial stress is one of the major reasons of divorce in the United States, according to a SunTrust Bank survey.
This might be one of the reasons why so many millennials are delaying or avoiding marriage altogether.
Poor credit if you struggle with repayment
Your credit score has a significant influence on your financial situation. It might help you develop good credit if you pay your student loan installments on time. Missing payments, on the other hand, may severely harm your credit.
The average credit score for someone with student loans is lower than the national average since many student borrowers have difficulty completing payments. The typical student loan borrower has a credit score of 656, compared to 711 for the whole United States.
This is a significant difference, and a student borrower's credit might take years to rehabilitate following missing or late payments.
