As I sit and watch the national student loan debt totals creep higher and higher, I wonder where this whole scenario is headed and whether or not we have reason to feel hopeful. I have to tell you, I really do feel hopeful of the future, even though student loan debt is on the rise and student loan forgiveness is like Bigfoot, something we talk about a lot but don’t ever see. For this month’s blog post, I want to give you some reasons to be hopeful when it comes to student loan debt.
First of all, I had a great conversation with a millennial this week who has her student loan debt under control and isn’t worried about it. She’s in an income driven repayment plan and has been for over a decade. While she’s been re-certifying her income every year, she says her servicer makes it easy (who knew?), and she says although her payment is going up every year, it is definitely doable. I was very glad to hear that! I’ve heard so much about millennials being depressingly resigned to a lifetime of debt that it was good to talk to someone who didn’t feel that way at all.
Second, I read an article recently that gave some new statistics about student loan debt that were not so depressing. For example, about half of the student loan debt out there is graduate school debt. Only about half is for people who are just getting Bachelor’s degrees. The article also reported that about 30% of people graduating with their Bachelor’s degrees have no debt at all!
Third, I’m hoping bankruptcy judges begin to see the necessity of relaxing standards on discharging student loan debt, nationwide. Of course, Congress will have to act on that eventually but, one can hope! Now, don’t get me wrong, I do NOT see student loan debt as a “gift” that can be gotten rid of by filing bankruptcy with wild abandon. I can tell you from my experience as a bankruptcy attorney that most people don’t file bankruptcy without a great deal of thought. It’s not like getting your nails done or going to the movies on a whim. It’s more like getting a seven year financial tattoo after a long, nasty stomach bug in your wallet. Most folks do not enjoy it, needless to say.
Fourth, I have faith in the next generation. I know they are smart, practical and up for the challenge of getting this mess sorted out. Do I feel the same about the parties that created it? Well, frankly, no. But, that doesn’t mean our young people will continue to put up with this fiasco. One benefit of going into student loan debt is that hopefully, you get an education and learn how to think. I find it hard to believe that these educated whippersnappers will allow this to continue unchecked. Once they come into their own, I’m sure significant changes will follow.
Fifth, I have faith in myself and the content and products I’m creating. Knowledge is power and my goal is to put inexpensive (and in many cases, free), products out there designed to help people get a handle on their student loan debt once and for all. That’s why if you need help with your student loan debt, you can check out my YouTube video playlist (search for my channel NCVTV), my podcast The Dollar Lama on iTunes and Podbean.com, my webinars and my book Parents’ Guide to Better Borrowing on newcashview.com.
Ultimately, student loan debt is like anything else in your life. You deal with it by thinking it through and making a plan to resolve it, then sticking with your plan! I firmly believe that it’s possible to get out from under it sooner rather than later, no matter what your situation.
P.S. Make sure you check out my online courses, books and resources, too! Investing in your money management education is an investment in yourself. That’s the best investment you’ll ever make, I guarantee it!. Don’t forget my weekly Facebook live videos on Facebook.com/newcashview, Instagram @joyalfordbrand and on my YouTube channel NCVTV. You can catch me twice, on Mondays between 3:00 p.m. and 4:00 p.m. for my Monday Money Management Minute and Thursday evenings between 7:00 and 9:00 (Eastern Standard time), for my weekly NCVTV episode. They are packed full of useful and entertaining money management information! If you’ve missed any NCVTV episodes, you can see the latest on newcashview.com or you can check out my YouTube channel and get caught up! You can get there by clicking here. Remember, like and share the NCVTV videos on Facebook and all your social media platforms, so others can benefit from them, too!
#studentloanlama #thedollarlama #dollarlama
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