College graduation, the best day of your life! On this day you’ll embark on so many new feats which includes a new career and new friends in new places to name a few. There is one other major obligation you’re on the hook for rather you realize it or not and that’s your student loans. Believe me, paying back student loans isn’t any fun, which explains why so many Americans place this responsibility on the back burner. Below are a few reasons why student loans don’t get paid. Take a very close look at these examples and make sure you don’t fall within any of them.
Reason 1 — Immediate Wants: The first thing a person wants after a 4 year fight with school is a new place to live. After they’ve bought their home, they want to purchase a new vehicle to park in their shiny, new garage. Then to round out the shopping extravaganza, they’ll need to purchase some furniture and home dressings but, they’re broke so they rack up a few thousand in credit card debt. This is the New America way for so many who desires so much so soon. I can guarantee student loans are not in the immediate financial plans for most. These wants can ultimately derail your future finances. The longer you wait to begin making payments towards your loans, the more interest you’ll rack up and the longer it will take to pay back your debts.
Neglect/poor money management: Secondly, some people decide to go a different route and instead of purchasing new cars and homes, they decide to party and neglect all financial responsibilities. One issue when people neglect their finances is there’s no money left for anything else. This group of graduates just doesn’t have any control over their spending and end up behind the power curve, paying back debt well into their 40s. Again, the longer you wait to pay the loans back, the more you’ll pay in interest.
No job: Sadly, some people don’t get the immediate gratification of purchasing nice things or partying hard because they are unemployed, looking for work after graduating. With an unemployment rate north of 7%, it’s clear that we have more applicants than jobs to go around at this point. Unfortunately, college graduates are not exempt at all from this factor. They are required to campaign against the people who graduated years prior and the current year’s graduates as well. These factors make it almost impossible to pay on loans. Some career fields such as teaching have specific hiring timeframes which means if educators aren’t hired during this time period, they’ll either be working outside their career fields or not working at all.
All these dynamics detail some reasons why people haven’t paid off student loans. In the past few years, we’ve seen a major crackdown against people who are working but refuse to pay the loans back. I suggest people start being more responsible and paying back their debts on time, who knows where the Sallie Mae police will strike next.