Loans have been around for decades, yet at this moment in time, there are numerous types of loans available on the market. One particular example of loans that have become extremely popular are student loans.
With this in mind, at this moment in time, for people from all around the world, graduating college doesn’t come with a job, but rather a pile of debt that has to be paid back as soon as possible. In fact, a recent study has shown that the average borrower for college-related purposes can have at least $33,000 worth of student debt, which at the same time, is also accompanied by credit card debt, and possible auto-related loans, in some cases, even a mortgage loan.
This issue continues to persist, considering the fact that the cost for higher education in the United States is one of the fastest-rising costs in the country. To put things better into perspective, since the year of 1980, costs at universities and colleges throughout the US have risen by around 757%, which is absolutely huge. Because of this aspect, numerous citizens choose to give up higher education for good, as dealing with the costs can turn out to be quite overwhelming.
The impact of student loans on young people
Studies that have recently been carried out have concluded the fact that over 70% of college graduates have student loan debts to deal with at the end of their higher education. Having this much debt at a very young age is both overwhelming psychologically, but also difficult to deal with, considering the fact that most graduates want to buy a car, home, get married, or start a business. This becomes considerably more difficult to do, given the huge student loan debt that has to be dealt with.
While there is also somewhat of a positive outcome involved, the benefits still do not outweigh the cons. With this in mind, more and more high-paying jobs require a college diploma, thus incentivizing US citizens to get a higher-education, and accumulate student debt which may be paid after graduation with a part of the salary being obtained. However, most of the times, the first year’s salary isn’t enough, judging by the fact that it’s also bound to cover living expenses, and other possible debts that students may be dealing with.
This has led to the appearance of numerous trends in student loans. While things are seemingly beginning to be better, with lower college fees, better ways of paying up debt etc., the trend is basically deemed useless due to the negative effects present in the last decade.
Fortunately, there are also a couple of alternatives to student loans, which consist of living your college life differently, in order to avoid accumulating it in the first place.
Based on this, living at home while studying for your degree may be the best decision to avoid accumulating debt. To kick things off, it is important to note the fact that community colleges are much cheaper, therefore you won’t need to invest too much money into the university itself. Secondly, as you’re living at home, chances are that you won’t have to pay rent, thus piling up more debt. By doing this, you may still need a small student loan, yet the sum that you’ll be spending may be considerably smaller when compared to the sums being spent by other students living away from their homes, or even abroad.
Another great alternative to avoiding the accumulation of student loans in the United States, would be to consider the idea of studying abroad. Numerous countries throughout Europe, but also in Asia, offer free higher education, if you attain high marks, with the help of grants that do not need to be paid back. Additionally, even if you do not get access to such a grant, the cost of higher education is considerably lower when compared to the one in the United States. As an example, normal higher education in the United Kingdom costs £9,000 per year, which is significantly less than in the United States. Other countries offer free higher education for anyone who fits the eligibility requirements.
Based on everything that has been outlined so far, while there is a positive trend in decreasing the amount of student debt that students have to deal with, the educational system remains very expensive, thus discouraging many people from all around the world. Luckily, there are numerous alternatives that can be considered in order to reduce your student loans, while also getting a higher education, which is great news from all the points of view.