Student loan debt is one of the most significant financial issues for individuals and families across the United States. Currently, student loans total more than $1.6 trillion and cost the average student borrower $280 per month. The issue of student loans, however, is much larger than a monthly payment. Student loan debt has spiraled into a robust culture of unstable adults with little to no hope for the future.
Some experts refer to the student loan crisis as the “web effect” of student loan debt. This refers to how student loan debt is often tied to other issues that can create unrest in a person’s life. Here, we’re going to take a look at the web effect of student loan debt in the United States and why it’s become such a problem.
What are The Comprehensive Financial Issues With Student Debt?
Approximately 43 million people across the United States have student loan debt. For many of them, the minimum payment amount makes it difficult to save money for future investments such as a home or retirement account. Furthermore, student loan debt often forces individuals to take on additional debt in the form of credit card payments, car loans, payday loans, and other liabilities. In fact, the percentage of millennials (ages 22-37) filing for bankruptcy increased from 35% to 38% in 2018.
How Student Debt Causes Higher Levels of Stress and Anxiety
It’s no secret that high amounts of debt are typically coupled with higher levels of stress and anxiety. For student loan borrowers, this relationship is especially true. In top companies across the country, employees note student loan debt as the number one stressor in their lives. Employees who are overcome by stress from student loans experience difficulty concentrating at work and are less likely to relax in the time they have away from their desks. Additionally, many individuals with student loan debt find themselves obligated to work second jobs to make their payments and tend to get less sleep because of it.
How Do Student Loans Affect Long-Term Family Debt
Believe it or not, student loan debt is not just an issue for millennials. There are many individuals 55 and older who struggle with student debt. Many of these individuals took out student loans to help their children and are now sacrificing their health and financial well-being to foot the bill. Experts predict that because of this issue, families will be recovering from student loan debt for decades to come. In the long-term, the issue of familial debt could cause the economy to decline and prevent future generations from achieving individual financial wellness or embracing educational opportunities.
Eliminate The Stress of Student Loan Debt Today
If you’ve found yourself with more student loan debt than your income can support, the best course of action is to eliminate it as soon as possible. A debt settlement attorney can speak with student loan creditors to significantly reduce the principal amount owed. Settling student loans via a debt settlement attorney helps eliminate student loan debt without the need to file for bankruptcy. For many students, debt settlement is an option that can help them achieve financial stability and mental health.
McCarthy Law, PLC is a law firm that can help you negotiate your student loan debt to a fraction of what you owe. To date, McCarthy Law has seen success negotiating settlements with virtually all private student loan lenders. We work hard to settle cases all of the time and don’t feel comfortable taking money from you unless you received a significant benefit from our services.
Don’t wait. Start forging a path to your debt-free future today. Call McCarthy Law, PLC at 855-976-5777 or contact us online.