If you are struggling with student loan debt, then you can rest assured that you are not alone. One million people in America default on their student loans every year. This problem is only going to get worse. According to the Urban Institute and Brookings Institute, 40 percent of people will default on their student loans by the year 2023.
The average person takes 19.4 years to pay off their student loans. They are the second-biggest debt in the United States. Interestingly, people who take out small student loans are the most likely to default. People who never completed their degree are also more likely to default on their student loans.
David Flynn is a professor at the University of North Dakota. He stated that he is not surprised by the fact that the people who struggle with student loan debt the most did not finish college. He also stated that stagnant incomes are one of the factors that is making it difficult for people to pay their student loans.
Additionally, David stated that the fact that more people are going to college is one of the reasons that more people are defaulting. Many people think that the best way to reach the pinnacle of their career and earn more money is to go to college. Rising college costs are also causing more people to default.
David said that it can be beneficial to take out a student loan to further your education. However, stated that you have to be smart about it. He said that it is important for people to have a realistic view of what their income will be after they graduate from college.
People go to college because they believe that they will make more money. However, many people end up taking out more than they make. Alice Kellebrew graduated in 2012. She had $20,000 in debt when she graduated.
Alice stated that even if you are making a good salary, it can still be difficult to pay your debt. She also stated that American society has normalized being in debt. She works as a financial counselor and is not surprised by the number of people defaulting.