Millennials have the awkward distinction of being the most indebted college students in history. According to a recent research, consumers under the age of 30 owe a combined Rs. 23985 crore in student loans, which is more than double the Rs. 9490 crore consumers under the age of 30 owed in 2015.
Students might have to forget about post-graduation
Student loan debt can hinder them from attending post -graduation. The average undergraduate accumulates Rs. 1, 80,000 in student loan debt. Students who are leaving their undergraduate programs with significant amounts of debt often cannot afford to take out another massive loan.
They Might Not Be Able To Afford To Buy A Home
Student loan debt significantly affects one’s ability to purchase a home. When a surveyor asked millennial renters why they did not buy a home, 55.7% of respondents listed “student loan debt/not enough money saved” as the top reason they were not able to purchase a home. Even if they can afford the monthly payments, putting money towards student loans might prohibit them from saving enough for the minimum down payment required by many lenders.
Students Might Have To Live At Home
While some renters cannot afford to purchase homes, other millennials with student loan debt cannot afford to rent apartments. Across the board, 21.6 crore young adults between the ages of 24 to 34 are living at home with their parents. This is a much larger number than in previous generations. Many of these young adults are not leaving the nest because they are not making enough money to pay back their student loans and pay rent.
Lower Net Worth
Data from a research centre reveals deviations among student loan debt against those without debt. The median net worth of a household headed by a college post-graduate under the age of 40 with student loan debt is Rs. 80,700. However, the median net worth of a household headed by a college post- graduate under the age of 40 with no student loan debt is Rs. 1, 74,193 – which is greater.
Students Would Not Be Able To Fulfil Their Dreams
Student loan debt affects more than their financial independence and standard of living; it also determines which dreams they pursue. For example, people might have a desire to work for multinational organizations; however, it is likely to forego these aspirations for a job that pays more to cover your student loan payments. Result is they may end up sacrificing a job, which offers them more satisfaction and purpose than the job with a higher salary.
For More Information:
*Fill The Form Our CERTIFIED FINANCIAL PLANNER Will Call You Freely*
Give Us a Missed Call On 022 – 62116588
(Or) Download Our MoneyMindz -Expert Seller APP
(Or) Download Our MoneyMindz-Financial Freedom APP
(Or) Visit: http://www.moneymindz.com/