Student loan debt is a burden affecting many people’s lives. From millennials to baby boomers, almost everyone is struggling with debt. America now has more student loan debt than credit card debt. For those just starting and attending college for the first time, it can be challenging to manage expenses and save for the future. Even though getting an education is one of the best investments you can make in your future, it also comes at a cost. Unfortunately, tuition fees continue to rise year by year. That means today’s students will likely graduate with a lot more student loan debt than their predecessors did a decade ago. Fortunately, the Biden Harris Administration recently announced the student debt forgiveness of $10,000 to eligible borrowers. Here are six reasons why you should take advantage of a $10,000 student loan debt cancellation if you qualify:
1. You Can Get Out of Debt Quicker
Student loan debt can take many years to pay off. If you have $10,000 of debt, it will take a long time to pay it off. On the other hand, if you qualify for $10,000 in student loan debt cancellation, you can get that debt canceled much quicker. Depending on the terms of the program, you may be able to get your debt settled in as little as one year. That will allow you to put more money towards other goals, such as retirement savings. Your debt will be paid off much faster, and you can move on with your life without the stress of another bill hanging over you.
2. Your Credit Rating Will Be Improved
Your credit rating is one of the most critical factors determining whether you can get a mortgage, car loan, and, even more recently, a job. That makes it essential for anyone to maintain a high credit score. Student loan debt can drag down your credit rating, making it more difficult for you to get approved for credit. You can improve your credit rating by settling that debt with a lump-sum payment. That will make it easier for you to get approved for credit and qualify for better interest rates on your future mortgages.
3. You’ll Build Equity and Wealth
Student loan debt is not like other types of debt. While you may owe the government tens of thousands of dollars, you do not own any property or equity in exchange. However, you can build equity and wealth by investing in real estate. You can use the $10,000 loan forgiveness to pay a property down faster. Even if the real estate market is cooling down, you can still use the equity from a down payment to fund other investments. By investing in real estate, you have the potential to build equity and increase your net worth.
4. You’ll Have More Money to Invest
Investing is one of the best ways to grow wealth and have a better quality of life. You have more money in your budget because you have settled your student loan debt. You can use that extra money to invest in stocks, bonds, and other assets to help you meet your financial goals. Investing allows you to reach your financial goals faster and retire sooner. You have the opportunity to make more money in the process.
5. You Can Start Rebuilding Your Career Path
Student loan debt can damage your credit and make it more difficult to find new employment. That makes it more challenging to start building a new career path. Fortunately, if you qualify for the $10,000 student loan debt cancellation program, you will have that debt settled. That can help you start rebuilding your career path. Your credit will improve and make it easier to find a new job. You can also use the extra money in your budget to invest in yourself. That can help you invest in a more profitable career path that can lead to more money and a better quality of life.
6. You’ll Build Momentum to Keep Going
Student loan debt is a burden that can crush your dreams and keep you from reaching your full potential. By settling that debt, you can gain momentum towards your goals and make more progress toward your objectives. By paying your debt and using the extra money to invest in yourself, you can build momentum and make more progress towards your goals. You will have more money in your budget to use to invest in yourself. You can also use that money to fund your retirement account or save for your next goal. You will have more momentum to keep going toward your goals. You will have more motivation to reach your next milestone.
In Conclusion, student loan debt is a burden affecting many people’s lives. However, President Biden announced the recent debt cancellation policy, which could help ease that burden by offering the cancellation of $10,000 in student loan debt to qualified borrowers. By taking advantage of this program, you can get out of debt quicker, improve your credit, build equity and wealth, start rebuilding your career path, and build momentum towards your goals.
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References
- “Fact Sheet: President Biden Announces Student Loan Relief for Borrowers Who Need It Most.” The White House, The United States Government, 24 Aug. 2022, https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/24/fact-sheet-president-biden-announces-student-loan-relief-for-borrowers-who-need-it-most/.
