Student Loan Debt Pros And Cons

In previous generations, adulthood came rather quickly for adolescents who secured full-time jobs, bought houses, and started families right out of college. However, in this generation, for millennials, born between 1981 and 2002, that is certainly not the case. Financial independence seems to be the biggest setback millennials have encountered as a result of growing student loans debt. It is much harder, today, to establish financial independence; something the previous generation did not experience. Many millennials are seen as lazy or laid-back because they are still living with their parents and figuring out their career paths; however, the truth is that millennials, by taking a step back to prepare for adulthood, are finding it difficult

Although it is not the only factor hindering them from transitioning to adulthood, it is one of the biggest and most intimidating. According to Time, financial aid today is not what it was back then. Most financial aid in the past was provided in the form of grants, or money awarded from the government, that was not required to be paid back. However, although some grants are still awarded, most financial aid is now in the form of loans, or money borrowed from the government that is required to be paid back with interest. As it was identified in the text “Meet the Twixters,” “According to the Center of Economic and Policy Research, recent college graduates owe 85% more in student loans than their counter parts did a decade ago” (Time 6). Recent college graduates owe more in their student loans than the previous generation because millennials experienced an inflation of 85 percent or more in their student debt. This inflation of student debt demonstrates just how much more money millennials invest into their education as opposed to previous generations. For example, Adam Davidson of The New York Times emphasized: “Nearly 45 percent of 25- year olds, for instance, have outstanding loans with an average debt above $20,000” (2). Illustrating why millennials are so far behind in their transition to adulthood because more money is going towards their education than ever

However, millennials have encountered a setback in securing careers due to competing with other professionals with advanced college degrees. In the article Grossman reflects on the success of prior generation of workers: “You need a college degree now just to be where blue- collar people the same age were 20 or 30 years ago, and if you don’t have it, then you’re way behind” (11). Millennials are now needing college degrees just to secure low paying jobs. Therefore, making it harder for millennials to gain financial independence because millennials may have to take lower paying jobs it can make it harder for millennials to gain financial independence. As a result, millennials may have to return to school in order to receive a higher level degree which will put them further into debt and further away from being financially independent. Since having a career is vital to financial independence millennials must obtain higher level degrees which cost money and