How is Student Loan Debt Affecting Your Life?

Over the last twenty years, there has been a significant increase in student loan debt. In 1996, the average student loan debt stood at $ 12,850. Today, it’s $35,000. According to a recent survey, loan debt negatively affects the lives of graduates by causing emotional, personal  and financial stress. Furthermore, it prevents them from pursuing their dreams. The survey included over a thousand college graduates and was carried out between July 2nd and July 19, 2016. Student loan debt causes stress and prevents you from doing well in life. Based on the survey, following is how student loan debt affects the lives of borrowers.

Prevents ‘Retirement’ Savings

73% of the respondents said that student debt prevented them from saving for retirement by affecting their decision or ability to do so.

Restricts ability to take a vacation

68% of the respondents said that student debt prevented them from taking a vacation by restricting their ability or decision to do so.

Inability to buy a home

Approximately 63% of the respondents said that student debt prevented them from buying a home by affecting their decision or ability to do so.

Embarrassment

57% of the respondents felt embarrassed when talking to family, friends, and others about their student debt.

Restricts ability to dine out

49% of the respondents felt that dining out was a luxury that could rarely afford. The debt had restricted their ability to dine out.

Inability to buy a car

47% of the respondents said that student debt prevented them from buying a car by affecting their decision or ability to do so.

Inability to keep up with daily expenses

For 41% of the respondents, paying daily expenses was an issue.

Impacts job choices

Forty-1% of the respondents felt that student loan impacts their job choices.

Delays starting a family

Student debt had forced 34% of the respondents to delay starting a family.

Affects social life

32% of the respondents said that student debt had curbed their ability to attend social events.

Delays marriage

Twenty-eight percent of the respondents said that student debt has forced to delay marriage.

Prevents/ delays starting a business

Approximately 23% of the respondents said that student debt prevented them from starting a business by affecting their decision or ability to do so.

Even though student debt can affect your life in the aforementioned ways, it doesn’t necessarily have to be bad. You can build your credit if you pay your student debt and other bills on time. As you pay down the debt, you credit scores will improve significantly. You can request a copy of your annual credit reports from the major bureaus if you want to find out how student loans may be affecting your credit.

Furthermore, in order to find out how you’re performing in major scoring categories such as payment history, you can look at your credit scores online. There are some ways for you to get back on track in case you’re already behind on payments. You can either search the default rehabilitation program offered by the government or combine eligible loans with a federal Direct Consolidation Loan to get out of default.