Photo Courtesy: Aldrien Peterson
Debt accrued during college can have a significant impact on the future life of a student. Unfortunately, most students tend to take higher loans than their actual expenses while focusing on their studies.
In cases where the students mismanage their loans, it is likely to have negative impact after they earn their degree.
Sajay Samuel, in a “TED Talk,” said, “In America even a bankrupt gambler gets a second chance but it is nearly impossible for an American to get discharged of their student loan debts. Once upon a time in America going to college did not mean graduating with debt.”
“Between 2000 and 2012 higher education costs increased by 62%. The cost for higher education has become unaffordable for most Americans. A median household has declined by 7% between 2000 and 2014. A college grad earned 10% more in 2001,” he added.
One of the negative impacts is that a former student may be unable to buy their own house. This often happens because the student has portions of their salary dedicated to repaying the loans, thus reducing their ability to save and have the purchasing power to buy their own home. College debts tend to make students live in rented homes or even stay at their parents’ homes after completing their studies.
Aldrien Peterson, a Leon County resident, says, college debt has created some obstacles in his life as an adult.
“College debt has affected my life as an adult because it has created obstacles to my American dream,” Peterson said. “I have had to sacrifice certain jobs due to my college debt; it has been difficult to purchase a home at this moment due to my debt and saving money from my income is impossible while continuing to pay my student loans.”
The impact of college loans can keep students’ dreams on hold after college. Considering that most students dream of establishing a future where they are financially stable, repaying loans may reduce their ability to gain financial stability as most of their finances go to repaying loans.
Brenda Harris-Smith, a Gadsden County resident, says college debt has affected her in many ways.
“Even though it was a small loan amount it was still debt,” Harris-Smith said. “One way I was affected is that each time I applied for credit cards it reflected on my credit report which added stress to the situation of being approved for other loans. I got tired of making payments.”
“You would think the closer you are to paying off student debt payments would become lower. You start with affordable payments but as you get closer to paying off your debt payments become higher. If you have to obtain student debt you must be prepared for the long run, and sometimes it may be your only choice,” she added.
Students are often forced to wait until their loans are fully paid before achieving their dreams in life. In some situations, the students are likely to forego jobs that pay salaries that cannot cater to their loans and livelihoods. It is evident that if the students do not have college debts, they are likely to start chasing after their dreams at an early stage in life.