What makes it hard for millennials to pay off student loan debt?

Millennials are different! They think differently, they do differently, and they live differently.

They believe in experiences rather than spending life in materialistic beliefs, and stereotypical career growth.

They love to be at peace, maintain amicable relationships with everyone, and very seldom rely on war, fights, quarrels, and immoral debates.

These might sound like strong words, hard to digest, but that’s what defines millennials.

Still, this highly intelligent generation is finding it troublesome to pay off their education/student debt, and some other consumer debts as well.

Why is that so? Why can’t this generation aim to become the most progressive financial generation, even though they are progressive in all other aspects when compared to the past generations, who still believe that life is an endless struggle of becoming successful, where the money takes up a big part of being independent and stress-free!

The answer runs deep, with reasons turning out to be more complicated than what meets the eyes.

Millennials starting off in costly education industry:

What’s the price of education these days, when compared to 30 years ago? It’s really huge.

Millennials are mostly successors of Generation X and at times the Baby Boomers. Both generations have seen political unrest and financial crisis.

By the time the first class of millennials entered schools and colleges, the education field has become a lot pricey, with new money earning opportunities coming up in this field, for the Gen Xers and Boomers.

So, did those two predecessor generations make this costly foundation? We can’t readily say that, as market inflation will also come into the picture if we are being unbiased.

But, education did become a lot costlier in the past 3 or 4 decades gradually. We have several reports to support the claim, based on recent statistics.

As Forbes quotes it, the price of college is increasing at a rate of 8 times higher than wages. When compared to the college costs of 1960-1970, it has increased by more than 1000%.

With this high surge in education costs, millennials are not finding enough income to take care of their student debts. And, just to dress it up a bit more, there are even some Gen Xers and Gen Zs, suffering from this rising education cost.

The maximum increase happened between 1980 and beyond. So, all those who pursued/are pursuing degrees in this time period, are the sufferers, with millennials comprising most of the victims.

Millennials quite often indulge in splurging:

The youth of this world is mainly made up of millennials and the ‘coming of age’ Generation Z. They are surrounded by technology, and they make costly purchases related to gadgets, fashion, and many other lifestyle accessories.

Not to forget, tackling education costs is hampered by other expenses, that takes up a chunk of one’s income.

When you are busy passing away most of your money to expand lifestyle costs, you can’t handle the increasing education costs, if your income is static and is of a fixed amount.

But what makes millennials splurge so much at times? The world of advertisement, media, social networks, peer pressure, and oftentimes the pampering they receive from their parents.

Baby Boomers and Gen Xers have seen several wars and fights, and they never wanted a single scratch on millennials. This amount of love has spoiled many youngsters, which many of us won’t disagree with at all!

So, it is a big-time for millennials to realize that it is important to take hold of their own life, their own finances, and their own dignity.

A better future definitely awaits for this brilliant generation!

Many millennials are not aware of debt relief:

In the current financial market, we have so many wonderful ways to clear debts. One just does not have to sit for a decade to pay off their consumer debts, like credit cards, personal loans, and so on.

The same gets applied for student loans too. Federal student loans have many options for repayment, student loan debt forgiveness, consolidation, and even settlement in extreme cases.

Private loans, on the other hand, may not provide so many repayment options, but they can be served well with debt settlement or debt consolidation (in case of multiple loans), by working with a good debt relief company.

Moreover, millennials can address their consumer debts pretty quickly and save money on debt payments, by working out consolidation or settlement plans.

After the miscellaneous consumer debts are gone, they can focus on getting rid of the student loans.

We belong to the modern world!

There’s absolutely no time to waste, especially when it is concerning debts.

Act fast Millennials! Get a stable financial life by clearing your debts as soon as possible!