The College Debt Crisis in America

Spiraling student loan debt is creating a big barrier to the financial success of a generation of Americans. By the time they graduate, the average student debt is over $37,000.

This is a significant increase of $20,000 in just over a decade. This gigantic leap in tuition and costs is placing a burden on the next generation of the workforce and entrepreneurs, as well as affecting the economy as a whole.

Any debt is stressful, but the larger the debt, the worse it gets. People have reported anxiety, depression, and worse due to debt. [4] A study revealed that over 64% of student loan borrowers had sleepless nights over the amount they owed and the repayments they had to make.

Over 70% reported getting headaches due to the financial strain. Sleepless nights and pounding heads are one thing, but there’s also the emotional toll. The Federal Reserve Bank of New York estimated that 17% of all those with a student loan are either delinquent in paying or in default completely.

Unfortunately, anxiety and depression due to money concerns are not productive. Stats show that folks who have money concerns lose over 12 days a year to not being “present” in the workplace. The term “presenteeism” is used to describe when you are at work but not fully functioning due to illness or severe stress. This means less productivity and worse results which could mean consequences. If you lose your job or make less money from commissions or sales, the financial stress will compound itself and get worse. There will be no way to pay off the student loan that is the root of the problem.

With student debt mounting and stress-related “presenteeism” rearing its ugly head, student loan debt in America is taking a toll. Saving for college tuition can spare your children this nightmare, and give them a brighter future. Use this Education Planner to calculate what you need to save

 

IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC.