Considering that the average US student loan debt is $32,731, it’s no surprise that many Americans (nearly 45 million people) are struggling to manage their payments, on top of other monthly expenses. To make matters worse, many borrowers are juggling multiple student loans payments, which can be a daunting and stressful exercise.
While a recession is difficult for any age demographic, it can be especially challenging for young Americans paying off their student loans. An economic downturn usually results in lost jobs and reduced salaries, which is magnified for those who haven’t established a lot in savings (or an emergency fund) and need to pay student loans while juggling other monthly bills in their budget.
For many Americans, graduating college means entering the real world and joining the workforce. For others, however, educational pursuits roll on at the postgraduate level, whether it's to obtain a medical, law, business, or other master’s degree. With that comes another two to four years of tuition to shell out, depending on the career you wish to pursue.
Americans really aren’t all that savvy in terms of financial literacy. A recent survey of adults in their thirties found that the majority of respondents lacked a basic understanding of financial terms. Of those who took the survey, nearly half didn’t understand what interest is, how bankruptcy works, or even possesses a basic understanding of inflation. That lack of knowledge can have long-term negative ramifications. It may lead to credit cards with high-interest payments, paying more than necessary in banking fees, and does little in terms of helping people amass a nest egg — or any savings, for that matter. This financial literacy deficit also comes against the backdrop of a nation that owes trillions of dollars in unsecured debt. Fortunately for you finance noobs, nowadays, you don’t have to go through your adult life financially blind. Gaining all the knowledge and savviness won’t happen overnight, but you can, in fact, become a financial literacy guru; all it takes it education, experience, and determination. Keep reading to find out how to get yourself started on the path of financial literacy.
An education is forever. Your student loan shouldn't be
Use your smarts and refinance your student loan at a lower rate.