The numbers are intimidating. 44.2 million Americans owe roughly $1.48 trillion in student debt
as of January 2018, and these numbers are increasing every day.
These figures are especially intimidating for current students. With close to two-thirds of students using loans to pay for college, it comes as no surprise that those currently in college—some 70%—say they’re worried about money.
In its National Student Financial Wellness Study researchers from The Ohio State University also found nearly a third of these students’ report neglecting their studies at some point because the anxiety is too overwhelming. The co-authors of the Ohio State study conclude that student borrowers may need more
than financial relief. They need help developing better money management skills to ease their stress levels. Not only is it causing stress for students, that stress is carrying over after graduation.
More than half of graduates report they have put off major purchases, such as buying a car or a house, due to their debt. More than 1 in 5 of college graduates report still living with their parents a full year after graduation. Student loan debt impacts finances for years after graduation. It is impacting graduate’s ability to save for any emergency savings and even saving for retirement.
Are you ready to say enough is enough? We couldn’t agree more. Americans need financial literacy. The first step to dealing with financial fear and anxiety is to develop a better understanding of what your relationship to these large, often-repeated student loan numbers is, especially given your future earnings prospects. The second is to create a realistic spending and repayment plan.
NFCC member agencies are a safe place to turn for help coming up with a plan to repay your debt that will not be too burdensome. They will work with your creditors and negotiate in your best interest. Ready to take the next steps and relieve some stress? Get started today!