Student Loan Debt Is Just the Tip of The Iceberg
As a college student, student loan debt is just the tip of the iceberg. There is another major problem that our students will encounter, and that is health care and health insurance. Not only do students get an expensive education that leaves them with a tremendous amount of debt, they will also face health insurance payments. Add to that the fact that health insurance costs are on the rise and will cost even more than today by the time students have graduated.
Soon, more and more employers will not offer to pay insurance costs as they used to because companies will hire more independent contractors or part time employees to cut down on expenses and not have to pay for benefits.
This does not apply to 100% of the population, but this trend is on the rise. Yes, family can have their children on their health care plan, but only until the age of 26. After that they’re on their own and must cover their own expenses.
If students have high amounts of debt such as student loans, car payments or credit card debt, add to that health insurance costs, and you have a lot of unexpected stress. That is why I encourage students and parents to plan and strive to avoid student loans.
From my discussions with parents, some who are personal friends of mine tell me that many parents they knew, didn’t plan or think about college expenses regarding their children. I can’t imagine that but then again who am I to judge
What I know is that student debt can ruin a person’s life, cause unnecessary stress. Add to that the fact that many who get a degree won’t even get a job and what they studied for. A study from the Federal Reserve Bank of New York, found that only 27 percent of college graduates work in a field related to their major.
Over 40 percent of college graduates take positions out of school that don’t require a degree, the study found. And over 1 in 5 college grads still aren’t working a degree-demanding job a decade after leaving school. This is a sad fact; however, I believe that there is a solution. Not an easy one but a solution still, that is easier than you might think.
We now have the Internet which I didn’t have when I attended college. 30 years ago, we didn’t have Amazon or eBay and Etsy, but today those businesses are thriving and have changed many lives.
When I went to college, I was a veteran and had the GI Bill pay for my college, which was a major advantage, and while in college I worked as a waiter in a popular restaurant and had many summer jobs.
Today many entrepreneurs are doing well online without leaving the comfort of their home or dorm. That is how Mark Cuban started and today he is a billionaire. You can too, if you go that route, and at first it won’t be easy. But I remind you again, that the time to plan and save for college now.
The time to get to work is now so when the time comes, you will be ready and have the money to cover all the expenses.
Today, many people, including parents and students are running a business online, with no up-front investment, or very little.
I am practicing what I preach, and my family and I have started a business online. The goal and purpose is to generate the income to pay for my son’s college education. I am certain success will not happen overnight, and there is a lot to learn, but we will do whatever it takes. I will keep you updated in future posts about our progress.
To have a successful online business a specific niche that interests you is recommended, and some research will be necessary. A person can start with a blog as I have done and then use that to sell their services or products, or they can start by selling on Amazon or eBay.
Do some deep soul searching, talk with the family and get them involved before you start on your journey. You will want and need their support, and once you get traction and results, get your family involved. It will surprise you how money can motivate a person, but I’m certain that you already know that.
The important thing to keep in mind is that there is work involved, as in everything else, and you must not give up. Here is an important message from Kobe Bryant, may he R.I.P. that is worth listening to.
If you are interested in what you are doing, it will be a lot easier to stay on track to reach your goals. Whenever student loans comes to my mind, I think of my son’s future and get instant motivation. My love and concern for him is greater than any challenge that I must deal with to get to where I want to go. Planning for the future is and should be a priority for all parents and students.
I’m also concerned about the direction that our country is heading in. Seeing what politicians are doing, and the hate and misinformation that is being spread by the media and online, I am worried for my son’s future. What kind of world will he be living in ten or twenty years from now?
On a personal note, my family came to America from Hungary to escape communism. Today many politician’s want to take the country in the exact direction that we escaped from.
From personal experience, I can tell you they do not understand what they are talking about. But, I’m not here to discuss politics so I will end it here, but I am still very concerned about my son’s future.
For this generation, raised with Internet access, it is easy to have a business, blog or a hobby online. There are many high school students that earn passive income every day, instead of working at McDonalds or a supermarket as a stock clerk. They are proof that it is being done, not only in America but in many countries throughout the world.
I believe that as parents it is our responsibility to ensure that we raise our children, guide them and get them ready for the world ahead. Some parents are more serious than others but I for one am one of those fathers.
I have been in debt before and did not like the pressure and stress that I was experiencing, but I paid everything off. I never filed bankruptcy, and I never screwed my creditors. I have always taken care of my responsibilities as everyone should but, when students are in your early 20s the last thing, they need is to have the burden of debt hanging over your head.
I hope you learn from the things I say and share them with your children and friends who have children of college age. They need to have an open mind and motivated to avoid that monstrous debt that is looming out there. Why? Because it can change a student’s life.
Everyone should make plans for their children. Life is difficult, but if you go on the right path with the right attitude with integrity, honesty and determination to achieve those goals you can and will reach your dreams. It takes time and work to set up a strong foundation for a business to achieve those specific goals, but the fact is there is no free lunch. If you want something done, you must do it yourself. Nobody else will do it for you.
I’ve mentioned that my son is a freshman in high school, and he is doing well. He’s taking honors classes, and he is a member of the marching band. He is far from perfect but close enough for me and my wife.
I will not make him do things he does not want to do, but he knows that solving the student loan issue is a family matter that we will solve together. We will guide him, but he has his own life and his decisions are his to make.
My parents loved me and treated me well, but sometimes I was angry and frustrated with some of their decisions. Growing up for me differed from what my son is experiencing. I didn’t have a computer or a cellphone, and I didn’t have access to the internet. He does.
My parents were always busy working, and I didn’t understand what they were doing, or why until I got older. Many years later I realized that their intentions were honorable and if it wasn’t for them, I don’t know where I would have ended up.
I say this because I see children today who dress and act different than when I was growing up. I see boys and girls who have green hair, some have gender issues, and many kids are on medication for anxiety. I’m not saying that any of this is wrong. What I am saying is that we live in a different world than what I grew up in.
I just want to guide him so he starts off in the right direction, and avoid any major mistakes that he might regret later in life. Yes, student loans are an issue, but so is getting a good education, and that is why this is so important to me.
Although one can live a good life without a college education, from my experience I want my son to partake in it. I want him to get off the computer and enjoy reading a good book. I want him to have a happy and comfortable social life, but I also want to help him understand why it is so important to plan and to put money aside for a rainy day.
America is so big, that most Americans never leave the country, and if they travel, they might only get as far as a different state that is nearby. Some never even get to do that.
I want him to experience how other cultures live, and realize how good we have it here in the United States. I must mention this because many Americans take their freedom and lifestyle for granted, and don’t realize how good they have it.
When my son graduates college, I want him to take some time off and travel and look around some.
I want him to look back at his college years, analyze what he learned and experienced, and make some definite plans on what direction he wants to take his life.
For those students and parents who don’t make any plans on how they will pay for college, there will be stress, discomfort and debt to deal with.
I believe that six months after a student graduates, their monthly student loan payments will start whether or not they have a job. I don’t want my son to be in that position, and I don’t this you do either.
One thing I want to bring to your attention is the fact that when you Google student loan, over 90% of the information that pops up is about how and where to get a loan. There are a few blogs out there like this one that discusses avoiding student loans but not as many who want you to borrow the money.
Hope you enjoyed this information, and I will share more soon.
Wishing you a great day and a successful 2020.
Goulash