Ah, high school, we all remember those days. They were days when everyone had hope for the future. We were all bright-eyed, bushy-tailed students that had the constant advice of "go to college, get student loans, study whatever you want, and you’ll have everything you want in life."
What a crock that advice was—at least, for many of us. Many Millennials soon found out that they entered the job market at a very, very ugly time. Most of the people who got student loans, ran up massive bills…only to find that the "golden" advice of being able to pay it back easily was a total lie.
Not only was it a total lie, but it also ended up having an even uglier bunch of secrets that made many students regret those idyllic years on campus. So, what exactly are those ugly secrets?
Newsflash: Student Loans Are Unforgivable By Bankruptcy
That’s right. Read that sentence again, and take that in. Unlike medical expenses, underwater mortgage, business failure, funeral expenses, or even credit card debt, student loan debt can never be forgiven by bankruptcy.
For those that can’t obtain a college grad-level job, and or those that undergo extreme hardship, they will STILL have to pay back the loans that they took out at the tender age of 18. That’s brutal, and that means that some people never get out of debt, no matter how hard they try.
Really think about what this means. Even someone completely bankrupt and homeless, can’t get their loans forgiven. People who don’t pay up may see their wages garnished, or even have penalties on taxes. Not fun!
Student Loan Forgiveness Programs Are Hard To Get Into
Most people have heard of student loan forgiveness programs that work with beleaguered grads. The truth is not as rosy as people expect.
Typical student loan forgiveness programs will only wipe away a portion of the debt—and typically will only serve people who can find a job in their field. A lot of fields don’t even have loan forgiveness programs at all!
Hardship Modifications Are Hard To Come By
Often when people accept a student loan, they gloss through the facts about paying it back. Some even expect that they will receive hardship modifications to allow them to decrease their payments. The problem is, qualifying for those modifications is extremely difficult, and some borrowers won’t qualify at all.
What’s The Takeaway?
The point is, teenagers simply are being preyed upon by various institutions, advised to take out loans that they may never repay, simply because they don’t really understand how loans work. Even though federal student loan programs require students to complete a financial literacy learning session, those programs are inadequate at best and are usually glossed over by financial aid personnel.
For those without a hefty college fund or multiple scholarship awards, it may be a better plan to work full-time while attending school part-time. It’s not as glamorous as the Hollywood version of college, but in the end, graduating without massive debt will be a huge leg up in adulthood.