The Impact Student Loans Can Have on Young Adults
Research has shown that the overall cost of student loans is rising each and every year. This has caused significant financial strain on many individuals, with some choosing to leave their education altogether as they can't seem to handle it. In this article, we are going to take a look at the impact student loans are having on young adults. Let's get started.
Less likely to have children
In a study conducted by nefe.org, experts found that young adults with student loans were less likely to have children and get married, compared to those without them. This could be because they are too busy completing the degree, but the information shows that debt plays a large part. Both children and marriage are expensive, so many are choosing to delay this until their debt is paid.
Poor mental health
It's no secret that financial stress can impact mental health, so student loans certainly can play a large part in a young adult's wellbeing. Studies have shown that those in debt have increased anxiety and depression. As well as the stress that comes with moving away from home and studying a complicated degree, it makes for a terrible combination.
Not able to purchase a home
In 2015, Equifax conducted a study into why young adults have not bought a house. Out of all the people reviewed, 55.7% said they couldn't afford it due to student loan debt/not enough money saved. With the average traditional home costing $226,800 in the US, you can certainly see how a loan could put you back several years.
Low credit score
Just like other forms of loans, if an individual cannot make the required payments on time, you will lower your credit score. This can then make it harder to borrow funds in the future, even if you have eventually paid it off. The financial strain that student loans have on young adults can cause many issues down the track. If you need help with student loan garnishment, click the link for more information.
Similar to what is done at banks, some employers run background checks on employees during the hiring process. If an individual has a bad credit score, it might just impact their job application. CNN notes that 14% of companies do a credit check on who applies. While it's a small number, it still reduces your chances of employment.
Less likely to continue education
Lastly, a significant impact on young adults with student loans is that they are less likely to continue their education. With the expenses of repayments, housing, groceries, and other bills piling up, it can become too much for one person. This even causes some individuals to drop out of their course altogether.
By considering the above, it is certainly interesting to see the negative impact student loans have on our young civilization. And with no end in sight, it really leaves us to wonder what the future of education will be. With an increase in mental health issues and even employment problems. We might see a decrease in students choosing to study altogether.