From analysis and study, it was found that millennial are the most indebted college students in history. It is such a concerning fact because we know that college students are financially inexperienced. It is highly likely for students to take more than what they really need. Therefore, it is important that you create a financial plan before going into college. So you know how to match your loans to your expenses so you just borrow as little as possible.
Money management to avoid student loan debt
Student loan debt undoubtedly can affect your life negatively. Hence, it is important that you plan money management for your education and borrow as little as possible so you won’t leave your college with huge amount of debt to pay for years. Many areas of your life can be impacted by student debt. Here are some of the negative impacts you are possibly going to suffer if you have huge amounts of student debt:
Unable to purchase a home
A home is important thing you need for living. However, student loan debt is found to be one of the most common reasons people unable to purchase a space for living. Student graduates, get a job, and pay their student loans with the salary their receive. They don’t have enough to save for purchasing a home. Some people cannot even afford to rent apartment because they spend most of their income to pay back their student loans.
Putting dream on hold
Aside form impacting your financial security, student loan debt also affect your ability to pursue your dream. Many people stick to their current job because of the money they need to pay back their student loans debt. You may have to sacrifice a job that offers you fulfillment and purpose for a career with higher salary.
Unable to invest in something else
Today, investing is something many financial experts are encouraged for. When you have investment, you have at least passive income you can use to cover other living expenses. With huge amount of student loans debt, it is unlikely you have leftover for investing. Hence, you should consider apply for multiple financial aids for your undergraduate education. With this, it is also possible for you to have leftover money from the refund you receive.
It is strongly recommended that you start investing early even during college. You may consider investing in Bitcoins, or any other types of cryptocurrencies . You may also consider investing in any other type of investment such as properly or stocks.
Foregoing grad school
Going to graduate school helps you build your career smoothly because more opportunities are there. You have more chances to have higher salary and position. However, grad school itself is not cheap. In fact, it is costly that you may end up with more debt. If you leave your undergraduate school with huge amount of debt, you may not be able to take out another loan for your grad education. You may end up forgetting about grad school.