The future of a country is the youth of that country. It stands to reason that the next generation will be in charge of things eventually. The younger folks that are entering adulthood need to be one step ahead if they want to succeed in today’s modern America. To do this, many are getting themselves into large amounts of debt to get educated in the hope that they will have a job or career after they have studied for their chosen profession. This is putting our younger folks at financial risk.
According to the Federal Reserve, student loan debt has now completely surpassed credit card debt and has exceeded $1.4 trillion -- a sky high sum that may be spiraling out of control. Modern college education costs more today than ever before. In fact, it has jumped by 1,125% since 1978. By contrast, medical expenses have risen by 601%.
The fact that more and more of today’s young adults are getting trapped in debt means that they are not in as strong a financial position as someone without such large debt. It, in turn, means that they have to repay their debt over a period of time, and this leads to a lack of disposable income and even more stressful, a lack of savings. A study by the American Institute of CPAs showed that 80% of Americans have made some sort of financial sacrifice in order to make student loan payments, and 50% said that they were delaying saving for retirement while they paid off their loans.
Students will be paying off their loans for years to come, and it is putting their retirement at risk. They will have to work longer and harder than ever, and this might be putting a huge strain on America's future, her youth.
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