… is student loan debt. Trust me. I speak from experience as well as millions of other young Americans cursed for doing it the “right way.” By the right way, I mean doing well in school, volunteering, attending college, make a future plan, avoiding pregnancy out of wedlock, living without a criminal record and doing what we can to build a brighter future for America when our time comes.
After doing all that, we got inundated with debt and no help with managing it. Hence the reason why I’m convinced that student loan debt is the worst possible kind of debt to have. Not convinced? Here are the top 5 reasons to support my claim.
1. Chances of consolidation are next to impossible
Unless you were able to convince the government to shower you with federal student loans, you are out of luck. Very few organizations offer private loan consolidation. Those that do seem unwilling to take a chance on lenders with a considerate amount of student loan debt and a meager income. Thanks a lot poor economy!
2. Interest rates are too high
Unfortunately, when the banks said variable interest rates meant they could increase, they weren’t kidding. Now tons of recent grads are dealing with a plethora of loans with nine percent interest rates. Lucky for the banks, now 80 percent of my monthly payment goes towards interest while the other 20 percent is applied to the balance.
3. Interest rate negotiation is non-existent
Even after making payments on time and being as accessible as possible, customer service reps with these lenders refuse to offer any glimmer of hope to lower interest rates. As a matter of fact, there’s a good chance interest rates will continue to climb and there isn’t anything we can do about it.
4. Payments are unmanageable
Thanks to the poor economy, most college grads aren’t able to get a decent paying job to pay off debt. Unfortunately, that means defaulting on loans and facing a poor credit score for some. And chances are your loan payments are $200+ thanks to the rising cost of college.
If only millions out there didn’t fall for the lies and dreams that student loan lenders and colleges sold to the public…
5. Bankruptcy is not an option
Thanks to the college educated in the 70’s who took advantage of the system, filing for bankruptcy or discharging any amount of student loans is not an option. In other words, you’re cursed for life.
Congratulations, you signed your life away to the devil!