At present, many young adults in New York and the rest of the country are struggling to get ahead of one particular form of debt: student loans and other education-related financial obligations. Many students graduate from college with tens of thousands of dollars in debt and find themselves unable to break out on their own and live their lives as adults. As a result, those young grads end up living at home or in arrangements that do not support independence.
Carrying heavy student loan debts can impact other aspects of young people’s lives, as well. They are more likely to hold off on engaging in other large-scale life commitments, such as buying homes and getting married, when they are unable to financially support themselves. They can also find themselves deferring their costs to other expensive purchasing tools – credit cards – in lieu of using cash or savings to pay for their daily needs. As a result, credit card debt can become a complementary problem to that of the initial student loan debt challenges.
These issues, coupled with unemployment and the bars to employment that some new graduates face, can lead to dire financial problems for college graduates. Some may find themselves unable to keep up with their loans and despite their best efforts, facing financial challenges that they may never have had a chance to overcome.
Despite the many hardships that heavy student loan debt can impose, young people have options for getting on top of their finances. Loan consolidation and reorganization can help some. For others, bankruptcy may be a viable option for when one’s total debt becomes too burdensome to handle. To learn more about debt management options, interested readers can contact bankruptcy professionals who work in their geographic areas.
Source: New York Post, “Student debt puts students’ lives on hold,” Gregory Bresiger, Aug. 29, 2015