It’s an old saying, but particularly relevant; “To get a good job, get a good education.” It embodies a traditional set of American values, and throughout its history, this country has presented education as the key that unlocks the American dream. Today, thanks to mounting student debt, that dream is becoming a nightmare for many young people and their employers.
How bad is the problem? Students average a debt load of $26,600 upon graduation, according to The Project on Student Debt, a comprehensive study conducted by the Institute for College Access and Success. One percent of the graduating populace will acquire over $100,000 in debt and one out of ten will be strapped with $40,000 or more student loan debt.
It might not appear all that alarming, until you realize the total amount of accumulated student loan debt has hit an all-time record of $1.2 trillion, with federal sources holding the bulk.
It produces a “damned if I do, damned if I don’t” scenario in which people turn to higher education in hard times in order to gain an advantage, yet they are less able to make payments on large loans. Upon graduation, they’re often confined to low-paying jobs, and the financial stress can significantly affect their performance.
The financial burden of college loans, in addition to the additional financial responsibilities of paying rent or making house payments, utilities, car loans, and purchasing clothing, food, and other necessities, can carry on for years.
Jobs that don’t pay, combined with a lack of financial literacy to fully address financial challenges, cause debts to pile up, slowly adding to the pressures that affect workers well into their thirties and beyond.
As pressures mount, the workers’ focus turns toward their personal financial issues and away from job performance, negatively affecting productivity, profitability and the company’s overall bottom line.
Mark Singer, CFP®, is a seasoned financial planner and the founder of Safe Harbor Retirement Planning, where he has been guiding individuals through retirement planning since 1986. With nearly four decades of experience, Mark has assisted thousands in crafting personalized retirement strategies that align with their unique goals and circumstances.
An accomplished author, Mark has penned several books, including Don’t Outlive Your Money in Retirement! 7 Key Steps, The Changing Landscape of Retirement—What You Don’t Know Could Hurt You, and The New Financial Wellness: Changing the Conversation. These works offer practical insights into retirement planning and financial wellness.