Lets talk about student loans, shall we?
I have spent a billion hours researching the student loan market, and have decided that there is absolutely no reason for a college graduate to pay their loans.
I have resisted writing this post because everyone is going to say it’s your obligation to pay your student loans and tell me I am a horrible person.
The biggest reason you will tell me to pay my student loan debt is the trillion-dollar deficit currently hanging over the US economy, but hear me out.
1. The reality is that the system is broken.
Student loans are forcing young adults to move back in with their parents. We are officially calling it, “The boomerang generation.” Of course, this trend is going to totally deplete Gen X’s retirement funds, which means nobody is going to have money for a very long time.
2. Your loans will be forgiven in 25 years.
The government has created absolutely no incentive for paying your student loan debt off.
When you graduate from college, you can choose to have your student loan payments based on income.
If you make twenty thousand or less a year, you are not required to make a monthly payment. (The average new grad makes less than $20K a year)
Don’t forget that your student loans are forgiven after 25 years. This means a portion of all of this debt will be added to the deficit at the end of 25 years.
In fact, Professors are investing the majority of their retirement funds into Sallie Mae loans. Professors are making money off of the students who cant pay their loans back. And it is backed by the government!
3.Paying your loans will ruin your career
In the past, “young adults with student debt made more money, had better credit scores and had more car loans than young adults who had not attended college.
This could be the reason that student loans are more likely to default than any other type of loan.
Now young adults are getting creative in how they pay their loans back.
One dentist stopped paying his student loans off, so he could start his own practice. Student loans are the last bill you should pay.
Think of creative ways you could use that money to increase your income. (Like the girl who used $17K of her student loans on plastic surgery)
4. You don’t need credit
The only reason left that you would pay your student loans is that you need credit. But the reality is that the whole “credit score” industry is falling to pieces, and startups are finding new ways to measure whom will pay them back.
5. The industry is broken
The student loan industry is broken. The next generation will be left with an insane amount of debt, and an economy that is falling to pieces. You submitting your three-hundred dollar payment each month wont change that.
Instead, focus on finding the career path that is going to work for your life. Learn how to earn money in the gig economy, and make a plan that is sustainable. Student loans are not sustainable.