Financial problems have been one of the leading causes of broken relationships or divorce for most couples.
However, this new type of financial problem has been wrecking couples nowadays, especially the young ones, which wasn’t prevalent a generation ago. This new financial problem most young couples are facing is called the student loan debt.
According to Student Loan Hero‘s latest report, around 13% of divorcees cited the student loan debt as their culprit for the dissolution of their marriages. Unfortunately, the study’s finding isn’t surprising anymore as more and more millennials carry the heavy burden of paying for their student loan debt.
According to Business Insider, around 44 million Americans have student loans, amounting to an astounding $1.5 trillion in debts! Not only have the number of students availing of loans increased over the past few years, but so has the amount of money and interest rates they’ve been borrowing!
No wonder most millennials and working adults today don’t have enough funds for savings, not when a large portion of their money goes about paying student loans, according to Jacqueline Newman.
Berkman Bottger Newman & Rodd managing partner Newman claims how student loans not only hold back the borrower from achieving his or her personal goals but also puts a damper on marriage. Furthermore, it heavily influences the couple’s lifestyle and it delays them from achieving their goals like buying a new home or having kids until they’re able to pay their debts off.
Student Loans Exacerbate Financial Struggles
The statistics seem to back Newman’s claim as more and more millennials wait longer to buy homes. Aside from paying their debts, the millennials claim they cannot afford to pay the mortgage rates yet, especially since it has gone up to 39% since the 1980s.
Poocher alone owes around $32,645 in student debt with five years to pay. She says she needs to wait for a couple more years before she can buy a house. The same is also true for starting a family. According to a New York Times Survey, around 13% of millennials today have no plans on settling down or having children because they’re still chained in paying their student debts.
They want to secure their financial stability first before settling down. Meanwhile, Student Loan Hero’s study found around 46% of respondents claim they delay starting a family due to their pending student loans.
While around 36% lied to their partner about their financial status and nearly 1/4 have no choice but to keep their student loans a secret from their lovers. However, Harrison Law Group attorney Taetrece Harrison seems to disagree. While she agrees that student loans can intensify an individual’s financial struggles, she believes it’s not enough reason to end a marriage. She believes it’s only a secondary factor, but not a main driver to file a divorce.
Tips To Pay Off Your Student Loans Quickly
The financial experts recommend you to apply the following tips to help you pay off your student debts quickly.
Get a Monthly Budget.
According to David Ramsey, one needs to create a monthly budget and stick to it. This will help you determine your cash flow and which expenses you have to cut down to save more money.
Refinance Student Loans
Sum180 founder Carla Dearing also recommends workers to refinance their student loans and consolidate them to have a single monthly payment. Aside from that, you can potentially lower your interest rates too.
This is important as it can help in paying off your loans quickly. However, you need to be careful about refinancing. Only refinance if your student loan comes from private companies. Otherwise, you’ll lose some protection if you refinance federal student loans.