The Long-Term Impact of Student Loan Debt

The Long-Term Impact of Student Loan Debt

You think you’re doing right by going to college, so that you can get a better job and have a better future. But college is expensive – and like millions of other Americans, you had to get a loan to help pay for tuition, books, and living expenses.

Unfortunately, student debt is having long-term and profound effects on the daily lives of young adults. Many are delaying important life decisions, like finding a place to live on their own, getting married, buying or leasing a car, and saving for retirement – all because of student debt.

And who knows how they got there. After all, most students are focused on going to class, getting good grades, and spending time with friends – paying back student loans is probably not high on the priority list. So, they may wait months after graduation to assess their loan dashboard to make a payment plan. They may have not know if their loans were subsidized or un-subsidized – and that’s really important, as accrued interest is impacted over time. Maybe they had credit cards they relied upon in college to pay for what they needed, and they decided to pay the minimum without looking at the interest rates of individual loans. And when it came time to graduate, they probably had a low credit score, so they can’t get that apartment, afford a new or leased car – and who knows, because of a bad credit score, they might not get that dream job.

So, understandably, when it’s time to pay back student loans, all that debt can seem overwhelming, but don’t fret. With a plan, there’s hope. You can still make those important life decisions and proactively build your credit score so that you can get access to better financial products to get what you need in life.

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To help you get there, here are a few steps you can take so that you don’t get buried by student debt:

  • Start paying off small amounts of your student loans to reduce principal
  • Pay more than the minimum of your credit cards so that you’ll owe less in total interest in the future
  • Join a resource like RentReporters to report on-time rent payments and start improving your credit score before you graduate

So, with a plan in place, you can pay off your student debt sooner, and in the process, improve your credit score. And that means not only can you get that better apartment, not prepay for utilities, and land a great job, but also, you can gain access to better financial products, like lower APR on credit cards. And that’s all a good thing, because now, you can start making all those important life decisions!

With RentReporters, start proactively managing your credit score to achieve financial freedom.

Enroll Now CTA | RentReporters

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