Student Loans: Unfortunate Necessity

Student Loans: Unfortunate Necessity

There’s a lot of talk in the news about student loans and the issues of financing our education with debt. According to, the United States now holds $1.2 trillion in collective student loan debt and graduates in 2014 are leaving school with an average debt of $33,000. The lighter side of the subject is that student loan debt among 20 year olds is at it’s lowest since 1995, which is something many news agencies are neglecting to report. Much of that is because today’s 20 year old has a much clearer concept of how much debt is too much debt. And perhaps because the younger generation is making wiser decisions with the greater understanding that they will need to repay this debt upon graduation. The idea of accumulating debt at a young age can be overwhelming and scary, but is it something that should stop you from making the leap?

A Degree Will Pay For Itself

That’s right, the education you are financing will allow you to make more money than without an education. Wage growth has been weak or negative among non-college adults, while the effect an education has on a young adult just entering the workforce has tripled in the last 30 years. It’s a good investment if you put it to use.

It Opens Up Opportunities

You want a good education. You want to be setup for success and have the right tools to ensure you leave school ready to earn a living (and pay back those loans). Having student loans can open up doors for you to select the school that fits your needs and will empower you to leave school, pay back those loans and continue on to have a lucrative career.

Repayment Builds Your Credit

It’s the craziest thing – having debt is what builds your credit score. Responsibly paying back your credit cards, your car loan and your mortgage all count toward demonstrating you can responsibly manage your budget. Same goes for your student loans when you pay them back on schedule. And if you need to opt for that deferment, it doesn’t effect your building credit rating.

Now, we aren’t trying to encourage you to take out more than you need, but we also know from experience that student loans are a means to an end. An unfortunate necessity, but a part of the system that allows you to look forward to a brighter future.

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