Student loans are rapidly becoming the next biggest crisis facing the American economy. This debt can limit your economic future in different ways. Student loan debts with large charges generally represent the purchase of a house , a car, or investments for your future.
Another sad consequence is that many Americans fear or cannot start a family for fear of not being able to support them because of the overwhelming debt. The reality is that money is very important for many things in life and debts make it difficult to create wealth.
Estimating outstanding balances
It is estimated that the outstanding balance of the student loan in the United States will exceed two trillion dollars (two million millions) in 2022. Most experts agree that probably a large part of this debt is never going to pay since almost a quarter of the students who have obtained these loans are in default or cessation of payments. It is crazy to think about this. Two trillion dollars?
So how do you get out of student loan debt?
Depending on who is asked this question, different answers are obtained. Some advisors advise deferring payments. Others recommend working in the civil service for 10 years in the hope of obtaining debt forgiveness. And finally, there are payment plans based on income that basically means spending a lifetime paying off student debt.
Obviously, the best way to get rid of a student loan debt is to never have acquired it. But surely they would not be reading this article if that were the case. And, let’s face it, most of us don’t have a wealthy spinster aunt who wants to pay us for studies.
Quick response to get out of student loan debt
The best way to pay off student loan debt is to maximize and increase productivity . Extensions, debt consolidation, the public service loan forgiveness program (PSLF) or income-based payment plans are all patches that do not truly solve the problem. According to current legislation, the only guaranteed way to get out of a student loan debt is to pay it. Therefore, the ideal is to focus on increasing revenues that can only be achieved by increasing productivity. Use every extra dollar that comes into your hands to pay off the debt.
It is like that. I can assure you that this is the quick answer that works 100% of the time. It is the solution for student loan debt financed with both public and private funds. But they don’t have to believe in my words. Let’s evaluate some of the most common recommendations and see why they are all a bad idea.