As I enter my college years, I am going to be impacted by student debt. I read and annotated three different sources discussing student debt which has reached $1.53 trillion. The people paying this debt are struggling to get good jobs to pay this debt because they need a good education before getting a job. If they have a good job, payments drain their bank account and they struggle to buy homes and settle down. This debt is making it difficult for people to live out the American Dream.
A proposed solution is to cancel the student debt. Individuals who are struggling to live a happy and healthy as a result of student debt would be able to better their lives and contribute to the economy. Their bank accounts would no longer be drained allowing them to use it to buy more products which would stimulate the economy through the creation of jobs. This proposal would also get voters who have student debt to vote on the issue, voting on other issues in the process.
In the meantime, it is best to focus on money management. Avoid unnecessary costs, but spend money on necessities for a good lifestyle. In addition, be aware of things that may benefit you. For example, applying for forbearance or deferment pauses payments if something happens and negatively impacts your finances. When paying student debt, pay the high interest loans first and be consistent. At this point in time, student debt is inevitable, so it is best to approach it through open eyes and knowledge of the potential struggle in paying it.
I have annotated the sources for this information here.
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