Many college students are finding themselves without money for basic needs in life due to looming student debt. Photo by James McIntosh.
College graduates in America are stepping into the workplace trying to gain financial stability, but are hampered by the student loan debt that many graduates face.
New graduates are now putting their hard earned money into paying off their student loans instead of buying a home, investing in business or saving for their future. Some even struggle to pay rent, buy groceries and pay for other day-to-day necessities, according to Time magazine.
“My plan is to either live at home or find an apartment that is relatively cheap so I can just put all my money into paying student loans,” said Alex Allard, a senior public relations major. “Easily I will have $100,000 in debt. I think a lot of people will.”
According to Forbes magazine, more than 44 million Americans have outstanding student debt. The total student debt in America is now over $1.5 trillion.
The threat of this debt can discourage some students from attending college in the first place. However, more than half of all jobs paying over $35,000 require a bachelor’s degree or higher, according to Time magazine. That number is expected to grow in the coming years.
“An undergraduate degree will get you work at McDonalds these days because jobs are so hard to find,” said Allard. “So we are paying all this money for a degree that is not going to help you that much in the long run. So I would love to see more of a support system or some kind of regulation of how much student loans can actually cost.”
Melissa Gianetti, a fourth-year student in the pharmacy program, says that exorbitant student debts cause some students to rethink their dream jobs.
“I know so many people that are very passionate about their majors and what they are going to school for, but there are a lot of professions out there that are not going to be able to cover a four-year debt,” said Gianetti. “These students want to change the world but they might not have the means to do so. When they get out or they won’t have the financial ability to be able to pursue what they want to do.”
Gianetti received very little help from Federal Financial Aid, despite being one of four children. She estimates that she will be paying off loans for 10 to 15 years. According to a study done by One Wisconsin Institute, the average length of repayment for student debt is 21.1 years.
According to student Loan Hero, about 69 percent of the class of 2018 took out student loans, graduating with a debt balance of $21,800.
“I put every penny into my tution, my rent for the school year and my food,” said Gianetti. “So I do think for someone like me the number is huge and I am sure I am not the only one that’s doing this right now in the University. At the end of the day I do not feel like I have received any sort of help in that situation financially. You would think that being one of four children would help me in the financial department but it didn’t.”