Student loan debt has reached unprecedented heights in the U.S. More and more young people are entering adult life with massive debts on their hands.
More Than 50% of Your Income Goes Towards Debt
You should not spend a good majority of your income towards paying back student loans. According to financial experts, no more than 30% should be spent on rent, about 10% on savings, and the majority on everyday living expenses. If more than half of your income is used to repay loans, then you have a debt problem.
You can Only Afford to Eat Ramen
You Can Only Dream about Owning a House
In the past, people could start families soon after graduating college and landing a job. Nowadays, owning a house is only a dream to many. If you are nose deep in student loan debt, no bank will be eager to offer you a mortgage. Even if you do get approved for a housing loan, the amount you receive might not be enough to buy the house you want. Thanks to student loan debt, you are probably forced to rent.
You are Thinking about Selling Your Car, or Never Buying One
If you own a vehicle, you might think about selling it or leasing it out to get some extra cash to reduce the student debt load. In your parents’ generation, this would have been unheard of. A vehicle is necessary for modern working life. Because of excessive student loans, many entry-level workers are forced to waste time on public transport, or completely forgo buying a vehicle.
How to Remedy the Situation
Your life shouldn’t be spent drowning in student loans. Paying back student loans can seem difficult, but there are several things you can try to remedy the situation.
Some people flee to Europe. Others call the creditors and ask to extend grace periods. If your income is far below what you intended to make, you may be able to come to settlement terms with the creditor. You can also seek help from debt relief non profits. It’s possible that, considering your income, you might be able to file a legal appeal to reduce or completely eliminate the amount you owe. Entering government service or a nonprofit profession might also help you relieve some of the debt burden via legal or settlement means.