3 Reasons Why Student Loan Debt Isn’t as Bad as It Seems
- You’re not by yourself.
Around 70% of college graduates owe money on student loans. At graduation, the average student borrower has roughly $30,000 in debt and expects to pay it off in around ten years. Everyone understands how you’re feeling. Student loans are a part of life for most people who receive a college diploma.
- It has the potential to improve your credit score.
Your credit history will follow you around for the rest of your life. Your credit score is used by lenders to identify what kind of risk you are, as well as what loan opportunities and interest rates you are eligible for. People with no or bad credit have a difficult time obtaining advantageous interest rates, and many are unable to obtain auto or housing loans at all.
Fortunately, repaying your student loans over time will help you establish a favourable credit history and improve your credit score. This can pay off big time by allowing you to borrow more money and get the best interest rates. That’s correct. You may be able to thank your student loans with a lifetime of lower mortgage payments when you buy a house.
- It doesn’t have to be a long process.
There’s no reason you can’t pay off your debts as quickly as possible if it’s vital to you. Jordan Arnold, 22, finished off his $23,150 student loan debt within ten months after graduating last year! He prioritized repayment by cutting down on living expenditures, working a second job, and making payments ahead of schedule before interest began to accrue. It takes a lot of effort and careful budgeting but being debt-free by the age of 25 is absolutely achievable.
