Student Debt and Financial Stress

Background

Many students deal with unnecessary stress during their post-secondary lives due to many factors. One of those factors is the student’s financial situation. Being a student is stressful, and having sufficient funds to deal with day to day life is difficult. Paying for gasoline, education, insurance, and living expenses can all cause a student to feel financial pressure. Financial pressure has been an issue for years, but has recently become an even larger issue than previously thought.

Current State

Many students currently attend colleges and universities and are under immense financial pressure. The amount of student debt is staggering, and the amount of people going into debt keeps going up. Tuition costs for the average university student are staggering at $6,500 excluding books and other expenses (Calma-Brown, A. , & Financial Post. (2018, March 06). Student debt: The crippling side effect of education). This is a major issue in our society and is causing mental issues for the students carrying the debt. The debt is causing cases of depression, anxiety, jumpiness, to name a few (Insler, S. (2017, September 14). The Psychological Effects of Debt – How Student Loans Impact Lives).

Desired State

Students should be able to live stress free both during, and after school. Leading to happier lives, and a better quality of life (Insler, S. (2017, September 14). The Psychological Effects of Debt – How Student Loans Impact Live). Life without debt is the goal for all students once they graduate. Having a successful life with minimal consequences is a good way for the students to stay happy, and not stress about how to pay off debts.

Proposed Solution

Students should do multiple things to ensure debt survival. Students should plan their expenses and make sure they have enough resources to pay off any debt, or to avoid it all together. Having to pay for the education and living expenses is very difficult for most people (Sourmaidis, D. (2018, September 25). How to Avoid Student Debt | Student Debt Relief). These students should have a strict budget, and should stick to that budget as much as possible. This will ensure that the student doesn’t end up spending beyond their means, which could potentially lead to them spending more money than they originally planned. Having enough monetary resources to keep afloat while in school. Avoiding debt may seem stressful in the short-term, simply because of the extra work required, but in the long-term avoiding debt will lead to less stress for the future.

Other Potential Solutions

Students could also quit or not go to school to avoid debt, but that would require sacrificing a secured future and a better life. Post-secondary education is mandatory these days, meaning dropping school is not a viable option for a student who lives in the current age. Another option would be to live off of somebody else, while having almost zero expenses yourself. This isn’t a viable option simply because most people will not allow a student to take up space without a fee.

Consequences of Action / In-Action

Avoiding debt has both positive and negative consequences for the student. If the student decides to avoid debt, they won’t have to worry about paying anyone off after their education is done. This eliminates the anxiety and physiological problems that are associated with students who take on debt (Williams, T. (2018, January 30). 10 Ways Student Debt Can Destroy Your Life). Another positive about avoiding debt is that it also keeps the students credit score higher. This is because if the student has debt and avoids a payment, their score will drop, while students who avoided the debt in the first place will not have that issue (Williams, T. (2018, January 30). 10 Ways Student Debt Can Destroy Your Life). This will keep their credit score stable and balanced, and will help them avoid having their credit score take a hit. A negative on not taking out debt may mean not having enough funds in the short term to make it through a tight situation, which could have been offset by a small loan.

Conclusion

I propose that students try and avoid debt, or have as little debt as possible. Not taking out debt can also mean a student won’t have backup funds when they need quick cash. This can lead to short-term money shortages, which could have been mitigated by a loan. In the long term, avoiding debt keeps students lives on track, and ensures that they have a healthy, debt free future after post-secondary. Students who keep debt out of their lives will find that they have less stress, and more fulfilling lives.