The Importance Of Student Loan Debt

“The number one problem in today's generation and economy is the lack of financial literacy.” (Alan Greenspan). Since kids, we are taught by our parents to study hard so we can earn excellent grades. With those grades, get accepted in a well-known university so at the moment we graduate, get an offer for a high paying job. By completing those steps, we “will be financially successful”. Unfortunately, this is the ideology of most of the population. We think that if we get good grades in school or if we are elite athletes who will go pro, we are already on the right track and many steps ahead of those who get lower grades or do not have any outstanding talent. Getting a high paying job will not solve your financial issues, as Robert T. Kiyosaki

Since college tuitions have inflated so much, it is not uncommon for student to ask for a loan to pay college. Consequently, the average student loan from public colleges is 25,550, this number is among the 66 percent of students who have a loan. In private university, the number just increases, 75 percent of students require a loan and the average loan debt is of 32,300 (U.S. Student Loan Debt). We all know how important is to get a college degree, but what we don’t know is how our student debt is going to affect us after we graduate. Unfortunately, when students ask for a loan, they do not have strategies to repay that debt, it is not their fault, but schools’ fault that have not taught financial literacy in their schools. Sadly, it seems ordinary to have a massive debt after we graduate from college, and therefore no one has acted to change this. Having a student loan is not the problem since it is not a liability, but an investment in your future. The problem of student loan is how long you keep them after college. Luckily, there are a few suggestions that if mastered through college, can make a huge difference in the debt. Having a part-time job and getting into an auto-debit program are just two examples that may help shrink the hefty loan (10 Student Loan Hacks) . The sooner the student pays his loan, the less he will end up paying. Hence, being many steps ahead of those who finish college and have not planned

However, throughout money literacy, one learns that more money is never the solution. More money will lead to more expenses like for example when someone wins the lottery. The statistics show that 70% of the people who win the lottery end up declaring bankruptcy (Teresa Dixon Murray). The best solutions are: pay as soon as possible expenses like student, mortgage, auto, and credit card debts which are the biggest debts and average worker has. Try to stay loans free unless you find it imperative to have it because as Nathan W. Morris once said: “Every time you borrow money, you're robbing your future self.” You may be happy with what you just bought with the loan but you will have to spend your future paying for it. And last, when cutting expenses, look for opportunities to invest your extra money in assets that could generate you more