If you’re like most students, your focus was primarily on your studies in school—not how your student loans might affect your credit. But once you graduate and payments come due, your student loans and credit are forever tied. Here’s how.
After realizing he couldn’t pay back his outrageous film school student loans with rejection notices from Hollywood studios, Sean focused his screenwriting skills on scripting corporate videos. Videos led to marketing communications, which led to articles and, before he knew it, Sean was making a living as a writer. He continues to do so today by leveraging his expertise in credit, financial planning, wealth-building, and living your best life for Credit One Bank.
There’s no doubt that college can be expensive. In fact, the cost to go to college has been steadily rising about 8 times faster than growth in wages. As a result, student debt is now the largest non-housing debt in America, more than either credit card debt or auto loans.
Student loans are a hot-button topic these days. As of 2019, 44.5 million borrowers owe a total of $1.5 trillion, and the average borrower graduates owing $28,650. Most people can’t repay a debt like this immediately, but don’t despair. The good news is that graduates with a four-year degree earn an average of $399 more per week than those with some college but no degree, which should make it easier to pay off those loans. With some patience and pre-planning, you should be able to pay back your loans and meet your other financial priorities at the same time.
Going to college can be exciting. If you’re like many college students, it may be the first time you’ve lived on your own, which might seem like a dream come true. But it may also be the first time you’ve ever had to live on a budget and manage your money on your own. And the expenses that accompany college living could quickly turn your dream into a nightmare of snowballing debt if you’re not careful.