How student loans are having a perverse effect on their dreams

Many people take on student loans so they could study in their dream fields to pursue their career in respective field later on. But after graduation the reality slaps on their doors and they have to re-adjust or worse, abandon their dreams for sake of paying bills and debt installments. The very debt that was taken on to allow one to pursue their dreams turn into a burden that requires them to grab a job that could pay their bills; no matter how it feels from inside.

Americans are sinking under student debt of $1.5 trillion for their education. This loan alone is more than credit card or auto debit.

Nicolas Ziebarth, a co-author of the study and an associate professor of economics at Auburn University says,

“It is unfortunate that perhaps debt is making it hard for people to take jobs that have low pay but high non-monetary returns such as those in public service,”

Mark Kantrowitz, the publisher of SavingForCollege.com, analyzed U.S. Department of Education data to look at how student debt informs people’s working lives. More than 60 percent of people who owe more than $100,000 for their education take a job outside of their field, compared with just 38 percent of those who owe $12,000 or less, he found.

Kantrowitz said

“It’s absolutely ironic. You go to a more expensive college, supposedly the best in your field, but take on too much debt, so you can’t work in your field because of the need to repay the debt. “

“Financial aid is critical to fund the best minds in our country,” said Kate Bronfenbrenner, director of labor education research at Cornell University. She also added that many people will hold on to their passions, by living a more modest lifestyle, although it’s an increasing challenge. To that point, she said student loans aren’t just challenging career goals, but homeownership and family plans as well.

 

 

“The debt is so high that people are having to readjust their dreams period,” Bronfenbrenner said.

LorriAnn Sanchez knew she wanted to be a journalist since she was eight years old.

“I just knew that I was meant to tell people stories,” she said. But her more than $70,000 in student debt weighed on her. “I realized that I wasn’t going to be able to live on $35,000 a year,” said Sanchez, 54. “I quit the newspaper.” She now works for a pharmaceutical company. She had to choose salary over her dreams to pay the loan she took to follow her dreams. There are so many other stories like that, where young students are suffering in silence by giving up on something they really wanted to do.

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