Credit card debt is a huge burden for many people in the United States, but now student loan debt is now taking the lead in terms of the amount owed. Young college graduates are overwhelmingly troubled about their college debt and truly desire debt relief. This certainly could have a negative impact on the economy in Pennsylvania and throughout the country over the next several years.
The amount of college debt today is above $1 trillion, and about 66 percent of college graduates said that their debt is one of their biggest worries. When they are so focused on getting rid of their student loan debt, they have less time to concentrate on investing in real estate or building their retirement savings. A huge economic dividing line may end up existing between those with student loans and those without them.
Students often don't feel the brunt of such debt until after they have finished college. In addition, they simply don't know what types of jobs they'll land after earning their degrees, so they are concerned about being able to make consistent monthly loan payments. Critics say loans shouldn't be comprising so much of students' financial aid packages for this very reason.
Sometimes being able to pay down a large amount of debt seems impossible. This is especially the case if a person's wages just aren't keeping up with his or her financial obligations. It is within the rights of an individual who is battling excessive debt and needs rapid debt relief to seek legal protection via bankruptcy, which may lead to a better quality of life for the person in Pennsylvania or elsewhere.
Source: npr.org, "Paying Off Student Loans Puts A Dent In Wallets, And The Economy : NPR", , April 11, 2014