Millennials carry much of this burden and have one of the highest student loan balances of any generation. The average student loan balance among millennials—consumers between the ages of 23 and 38—was $34,504 in the first quarter (Q1) of 2019, an 8% increase from Q1 of 2018.Every year students are graduating from colleges to get their dream job but you know Two-Third of students takes education loan to complete their education, Education cost is rising at the rate of 15% P.A.These education loan can be a burden in the beginning of their careers. With the average salary of about $50,000 in which they need to pay a Monthly instalment and manage their personal expenses too including the emi of car,hoam etc, its a quite discussion over this topic that is your student loan worth because if you compared the opportunity costs of an average student loan maybe you can do other productive things like starting your own business and giving jobs to others rather than be an employee of someone else etc.So i am gonna share with you some facts and views regarding this

Choose your degree wisely-Not all majors have same income potential

For a teenage student it would be difficult and confusing to pick your major wisely, specially for those who doesn’t have any mentor or those who are first generation learner.Some students pick their careers according to their interest and some of them choose to attend their dream college,which further result in changing the course almost 30% students change their majors during their college time.

Students who majors in STEM earns the highest salary as compared to others majors,which is followed business then economics etc.Student loan are very important and big decision for student because he has to bear it for many years after completing their college.So, do some own research and take guidance from some experienced person before picking up a course.

College graduated may have more financial stability

College graduates have more financial stability as compared to those who doesn’t have.Investment in education is a good option.The pay gap between a college graduate and high school diploma is very high.The earnings of people would continue to rise with the rise of education level.The level of unemployment will also high for no-graduates.People having college degree have a healthy lifestyle and better financial stability.

Different colleges have different costs

The college cost of colleges are different mainly private college demand more fees as compared to public university, There are many students who take admission in college because of various reasons like for having a tag of that college,maybe the college is near to their house,maybe the college have big campus etc these perception and decision of students towards college make them to choose college without concern over its cost which is an important factor.So, it is better to choose your college as per your affordability and your subject interest.

Bottom Line

While college graduates can earn a good income yet it doesn’t mean that education loan worth it.While taking an education loan it better to consider the various factor that comes with it because it will cost you and your family’s finances for a decade its better to go for scholarship and financial aid first then look for student loan and if you borrow then its your responsibility to make most out of your college time, do better at college,make networking and be competent.

That’s all. I hope this post on ‘Education loan and Millennial’ is useful to the readers. Further, If you find this post helpful and want me to write more contents on any similar topic, please comment below.