The Biden administration has further extended the student loan repayment freeze until May 2022. However, one cannot neglect expressions like "one last time" and "prepare for repayments to restart" which accompanied this statement.
There's a shared sentiment among student loan holders that the pressure and stress caused due to student debt are way more than what they had estimated. This disappointment is encountered in various forms. To throw light on these matters, let's enlist a few of the many issues faced by student debt holders in various facts of their lives.
Career Growth
- Student loans influence career decisions taken by fresh graduates in terms of job selection, salary negotiations etc due to the pressure of repayments and accumulating interest amount.
- Student loan holders are left with limited career choices and forced to pursue jobs with secured income while abandoning their dreams. This fact invalidates the purpose of student loan.
- Pursuing further education to enhance skills and knowledge can be highly impossible with an existing education loan.
Personal Growth
- A delay in personal milestones is commonly observed among individuals with student debt.
- Marriage, buying a home, and starting a family lose their true meaning when you cannot cherish them as they should be due to financial constraints. More than half (51%) of borrowers are delaying the purchase of a home because of their student debt, according to a report the National Association of Realtors (NAR).
- Personal relationships are impacted due to constant financial stress. Numerous surveys have brought to light startling data about the toll student loans are taking on couples and families.
Mental Health Issues
- Student loans are stressful regardless of your income level. The constant stress of loan repayment is often underestimated. However, studies have linked mental health crisis to student loan debt.
- Feeling trapped financially raises a question of self-worth and ability to achieve your career and financial goals.
- Many loan holders succumb to suicidal ideation in desperate times. While many others continue to silently suffer from anxiety issues, depression, other mental health issues without any help.
Click here, to get acquainted with more such shocking statistics.
The havoc created by student debt is known nationwide. There are several loan holders with high hopes for student debt cancellation. However, it is essential to bear in mind the time factor in this process. It may take a good number of years for the debt cancellation to land on our table. Meanwhile, the debt amount will continue to grow in the form of cumulative interest.
Also, according to experts, the debt cancellation cannot be counted on and if it does happen, it could only cover your debt partially instead of the whole amount. In such circumstances, the loan bearer would be responsible to pay the remaining debt.
In the given situation, it is best advised to be prepared for loan repayments. Consider all the possible options like refinancing, financial planning, earning extra income, etc. The reason behind considering these options is to stay a step ahead when the loan repayment freeze is lifted. Even in a rare scenario like student debt cancellation, refinancing would certainly support you in repaying the debt amount which remains uncovered by the debt cancellation policy.
Income Share Agreements (ISA) are an unorthodox way to get out of the shackles of student loan debt. To know about ISAs, leave a comment below.
