Source: Too many millennials are facing buyers’ remorse over one of the most expensive purchases they’ll ever make
Author: Jessica Mai
Millennials face many uphill battles –from the increasingly competitive college admittance to the job decline after college. But a new article suggests that the cost of college itself is a major uphill battle for many millennials.
In the article, Too Many Millennials Are Facing Buyer’s Remorse Over One of the Most Expensive Purchases They’ll Ever Make, author Jessica Mai brings to light the struggle that many millennials are facing when it comes to student loans for college. In the past, a college education has paid for itself again and again over the course of a lifetime in the form of higher wages and earnings. Furthermore, student loans incurred were viewed as an investment, which could be paid off fairly quickly once higher employment was secured due to a higher education. For this new generation of millennials, however, this view is rapidly changing.
In a recent survey, the author reports that over half of millennial graduates have buyer’s remorse over the student loans they incurred to fund their college education. And over a third would not have attended college if they had known beforehand the total cost of education in the form of student loans.
It is important to note that there is no data to support that graduates regretted the education itself, but supports that idea they regretted the cost of the debt to secure the education. An added benefit to the article would be a survey which revealed data to show if graduates who received either grants, financial aid or worked to pay for the education as they went also regretted the cost of the education. This article focuses solely on the weight of concern and uncertainty which student loan debt places on many of the graduates who incurred them.
The article highlights a common concern among graduates with student loan debt. That concern stems from not knowing how much they owe, how much the total balance will be, how much each monthly payment or interest rate will be, how long it will take to pay off or what it is exactly they signed up for when applying for the loans.
Experts encourage borrowers to make a “game plan” to repay student loans, but even more importantly, spend time researching the actual and future cost before ever taking out a loan. This invested time could save thousands of dollars in the long run as well as have a positive or negative impact on future financial life events such as home purchases and retirement.
With a sound game plan put in place ahead of time, or creating a firm debt-repayment plan, this uphill battle for many millennials will only be a small bump in the financial road with many great vistas ahead.