Millennial Student Loan Rat Race

Rat Race is the name and being broke while smart is the game! Where to start? First, I know your parents told you as a child, “Get good grades and go to college!” Well, nowadays people really struggle with the decision of attaining the American Dream of a college degree. A degree is not getting many Millennials the permanent job opportunities as it did for the generation before. Many companies also are requiring higher degrees like Master’s and Doctorate to qualify for employment.

With student debt looming, Forbes announced that Student debt in 2021 is now about $1.7 trillion. The latest numbers for 2021 show 45 million borrowers who together owe nearly $1.7 trillion in student loan debt in the U.S.

What is really unfortunate is that most people want to pay their loan debts back. The troubling issue is the ballooning interest that keeps accruing during the debt. I am sure many Americans would have already paid their student loans back if it was not for the crippling interest being added to the principal debt.

The Department of Education has given many borrowers temporary relief in the form of a payment deferment because of the pandemic this year. Many borrows have received a break from the Rat Race in the light of this temporary forbearance. Now many Americans do not have to “rob Peter to pay Paul”. Many are using the extra income that would have been used for payments to pay down the principal for their student loans. Others are using the money to pay past due bills such as credit card debt, car loans, and mortgage payments. Nevertheless a lucky few have had the opportunity to use the money to save for an emergency saving account.

No matter what Millennials are doing one thing that will be certain is that they will be fighting this uphill battle tackling trying to get out of the crumbling student loan debt that seems to have no end in sight.