The burden of student loan debt facing many adults has become crushing. Over the past ten years, the total amount of student debt has more than doubled and it’s leaving people across the country with punishing financial hardship to endure. Young professionals who are just starting their careers feel this burden the most. While trying to find a way to afford a home and other expenses, they also have to factor in a monthly payment of $300 (on average) to repay their student loans. Luckily, employers in multiple industries have found a way to help.
Why Do Student Loans Cause Major Stress for Young Professionals?
There are multiple factors that play into the burden of student loan debt. Not only are the monthly payments high but the average interest rate is as well. These two factors combined make it difficult for students to make a dent in their total debt. As students pay month after month without making much progress, they become discouraged and see no hope for their financial future. This type of financial stress also makes it difficult for them to realize other goals such as buying a house or raising a family.
What’s the Average Length of Student Loan Repayment?
Today, the average length of student loan repayment is 21.1 years. This means the average college graduate will finally pay off their final student loan at the age of 43 if they’ve diligently followed their repayment plan. To help reduce the time it takes to repay student loans, many borrowers get second jobs or do work on the side to make extra money. As a result of working late nights and extra hours, these borrowers are unable to focus their full attention on their day-to-day work, and their careers tend to suffer.
Student Loan Repayment Plans Are a New Worker Benefit
In recent years, employers have realized the financial hardship confronting their young employees and have come up with a solution. Student loan repayment is now one of the hottest benefits on the job market. There are a variety of ways employers have decided to help their employees repay student loans, including:
- Monthly stipends
- Direct repayment to the lender
- Lump-sum bonuses
In addition to monetary assistance, some companies offer employees student loan repayment education which helps them make the best decisions regarding their repayment options. The government has also realized the impact companies are making on the burden of student loans. In 2019, a bill was introduced that would allow a tax-break for employers who chose to offer student loan repayment benefits.
Understand Your Options for Student Loan Repayment
If your company doesn’t offer student loan repayment benefits and you’re struggling with your student loan debt, there’s no better time to discuss your financial options. The only option that will reduce the total amount you owe is debt settlement. Debt settlement is when your creditor accepts a significant reduction in what you owe.
At McCarthy Law PLC, we are dedicated to helping individuals get out of student loan debt with the option of debt settlement. Our attorneys are qualified debt lawyers who believe that finances are a personal matter. When you meet with us, we will not judge your situation. Instead, we will work to help you come to a solution that gets your finances back on track.
To schedule a free consultation, call McCarthy Law PLC at 855-976-5777 or contact us online today. We’re looking forward to helping you find a solution to your student debt.