Why is it crucial to reduce or eliminate your student debt?
When you are young, your whole life is ahead of you. Often times, the road to your future happiness seems like it has to go through college and very few ambitious young people have attempted to pursue success outside of a higher-learning institution. Unfortunately, due to the high cost of tuition in many cases and the lack of adequate personal or family savings, many people opt to take on student loan debt as a way to cover the necessary costs of attending their institution of choice.
The grass is always greener
When you’re in the midst of your favorite lecture, or surrounded by inspiring, energized, and enthusiastic peers, it’s hard to think how student loan debt could eventually creep up behind you and surprise you as a bad thing. In truth, there are many convincing reasons why reducing or eliminating student loan debt is an incredibly wise and well-informed choice for graduates ready to embark on their next stage of life.
Going forward with renewed clarity
You can’t and wouldn’t want to get a refund on your college costs, or go back and unlearn all that knowledge you now possess. Perhaps you just need to find motivation and means for reducing or eliminating the debt that seems to be following you like a shadow.
• A loan default can have substantial effects on your credit score. Graduates in 2014 had an average of $33,000 in debt from their educational loans.
• If you’re paying on time and you make enough money to cover the debt, a student loan can actually serve to improve credit in the long haul, but that’s entirely dependent on the income in question.
• In some cases, if you’re seeking a home loan for the first time, or even for a second or third time, banks will take careful consideration to your credit reports and history. This is especially the case with regards to VA loans or FHA loans, where deferment doesn’t even make your student debt irrelevant to the bank.
It’s no secret that debt can be burdensome for anyone who has a large amount of it in their life. Student loan debt is certainly no exception. In fact, as you now know, it can be a major impediment to achieving various goals and fulfilling all the many dreams you may have.