Did you know that the average American student debt coming out of college is $28,000? Well, if you never knew that, here are some things that you probably still don’t know about student loans.
Student Loans Can Never Be Erased
In most cases, student loans cannot be erased even under bankruptcy laws. This is because, in student loans, the government is protecting the lender, not the Student, which is entirely backward, in my opinion. The truth here is that your lender will give you a student loan not because of your best interest, but because of the interest that you will be paying throughout your lifetime. So it’s like more of a trap than a solution, as most people would love to call it.
Average Student loans take 21 years to pay
So, how long does it take to repay a student loan? Well, the average 4-year degree takes 21 years to pay back a student loan. Twenty-one years that can be translated into two decades under the burden of debt. So, good luck retiring at the age of 60 because you very well may be working the for the rest of your life.
Student Loan Is Enslaving
Getting a student loan makes you a slave to the lender. Even though conventional wisdom says, “get a loan and get a degree,” actual knowledge, on the other hand, would frankly tell you to gain some skills for a vocation. And this could mean getting a higher education, but it could also suggest looking into getting an apprenticeship, or going to vocational school or something where you’re not going to accumulate a ton of debt, and something that better suits your skills. You, do not want to spend 20 years of your life under the burden of debt. Instead, I believe everyone wants to be able to experience financial peace and freedom. If this is your desire, please avoid student loans
43% of Student that gets a loan are often behind payments
Success is not guaranteed when getting a student loan. In fact, of people with a student loan, 43% are behind on payments and of that 7 % are in full. Those are some big numbers and are a reminder of the risks of accumulating debt by taking on student loans.
It’s Not Worth It
According to a Consumer Reports survey, 45% of past students said that college just was not worth the cost. In other words, nearly one out of every two students said it just wasn’t worth it. So rather than wallow in such financial bondage, maybe you should consider something different like an associate’s degree, vocational school or perhaps even an apprenticeship. However, if you feel college is the best choice for you, one thing you need to have at the back of your mind is that you need to minimize the debt that you incur, or get rid of it altogether.
Please don’t get me wrong. I’m not saying student loans are no good; they are, in fact, they are fantastic. But if you want to attain financial freedom immediately after college, or would not want to be enslaved to anything that would either cause you to inconvenience your life, then you might want to stay far away from student loans!