Student loan debt is one of the most significant issues that millennials are struggling with today, and while the problem isn’t quite as severe here in California, it is still something that we all need to understand so that we can be sure to take steps to move in positive direction.
Struggling With Student Loan Debt
The cost of going to college has been on the rise for decades, but it has increased to a whole new level in recent years, and today’s young people are the ones who are being forced to pay the price.
The only way that most college students can afford to make their increasing tuition payments is to take on student loan debt, which then drives up the cost of their already expensive education when you factor in the amount of interest they will eventually have to pay on those loans.
So when today’s college students are graduating and hitting the job market, they are already doing so with a massive weight around their necks that will cause many of them to spend the rest of their lives questioning whether that education was worth the cost.
Other Factors for Millennials
One of the biggest problems with student loan debt is that it is preventing college-educated young people from spending money freely on economy-boosting purchases like houses and vehicles.
Having a massive debt servicing payment on a student loan can be an incredible burden on someone who is just starting out in life, and finding a way to get ahead despite those debts can be a nearly impossible task.
For that reason, outstanding student loan debt acts as a weight around the necks of some of our best and brightest young minds.
Where previous generations would have been saving up for a down payment on a home or funding their retirement accounts, millennials that start from behind are spending a large part of their working lives simply paying off the degree that got them the job in the first place.
Student Loan Debt in California
Fortunately for California residents, our state ranks near the bottom in terms of outstanding student loan debt. Between the well-funded state schools we have here and the plethora of work/study opportunities, millennials are able to make their way through a number of degree programs while keeping the cost of those degrees to a minimum.
Having a low amount of outstanding student loan debt gives California residents a significant advantage over millennials in other parts of the country. And when you factor in the compound interest of those savings over the course of a student’s life, the figures get pretty large in a hurry.
No matter what state you are talking about, the increasing cost of secondary education is a massive problem all over the country. But here in California, we are working hard to keep that issue under control. This gives millennials here an advantage over millennials in other parts of the country that should add up significantly over the years to come.
