Students Revolt: 56% Say Paying Back Federal College Loans is Straight Up Unfair

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Many call the younger generation entitled; sometimes, they truly live up to this.

A recent survey shows how out of touch and completely unaware the younger generation is regarding personal finances and personal responsibility.

Here is a detailed look at the findings. Be prepared to be shocked.

56% of Students Think Student Loan Repayment is Unfair

Yes, 56% of students claim having to repay their loans is unfair.

Breaking this down further, 31% say making repayments is ‘somewhat unfair,’ and another 21% say repayment is ‘very unfair.’

On the one hand, I can see where they are coming from.

You are 18, have no clue about personal finances, and take out these giant loans you must repay.

But on the other hand, they have to know they will need to repay them.

When I took out student loans, I knew I had to repay them. I was even told this.

To think that repaying a debt you took out is unfair goes against common sense.

What’s next? Thinking paying for groceries is unfair, too?

Lots of Debt

It isn’t only student loan debt they are struggling with.

Thirty-two percent have credit card debt, and 23% have a car loan.

Overall, 71% say they have some form of debt.

Admit to Overspending

On the bright side, this generation at least admits to overspending.

Overall, 81% of students say they spend more than $100 every month on non-essentials, 43% spend more than $250 each month, and 17% say they spend more than $500 a month.

Overspending Categories

Breaking down where they spend the most money, you will see some common areas where many people overspend.

Here is where they say they spend more than $100 every month:

• Dining Out: 65%
• Clothing: 58%
• Entertainment: 47%
• Travel: 21%
• Alcohol: 13%
• Gambling: 7%
• Drugs: 5%

The most surprising are the bottom three: alcohol, gambling, and drugs, typically an outlet when you aren’t happy.

Admit to Being Able to Save More

In an ironic twist, 53% say they could save more money monthly.

This extra savings could help with student debt repayment so they are free of this burden sooner, or it could go to having a financial cushion in the event of an emergency.

Yet, even with this understanding, they choose not to save.

Understanding The Disconnect

The reality is this generation has an awareness of smart financial decisions, otherwise, they wouldn’t be able to admit to being able to save more.

But their actions tell a different story.

Even though they know what to do, they don’t.

Some believe the reason is simple: Social media.

When scrolling through their feeds, young people see the glamorous lives of others, thinking it is reality when, in fact, it isn’t.

They fall victim to FOMO and end up buying without realizing they are digging themselves a deeper hole to get out of.

Steps for Improved Finances

So what should they do?

The first step is accepting where they are.

They need to write down all their debts, how much they make, and then track their spending so they can see where their money is going.

Then, they need to set up a plan to get out of debt.

While doing this, they should also consider a side hustle or figure out ways to increase income while also decreasing spending.

Doing this will speed up the debt repayment process.

Finally, they need to understand what they value in life. 

In other words, what brings them joy?

If it is traveling, cut out the other wasted spending and put some money towards travel.

This will allow them to be happier while improving their financials at the same time.

Adulting 101

Growing up is part of life. Sadly, most schools don’t teach personal finance, so adulting when it comes to money can be complicated.

Luckily, here is a guide to adulting so you can more easily figure things out, without making major mistakes.

The Ultimate Guide To Adulting 101

How to Get Out of Debt

If being in debt wasn’t bad enough, trying to dig yourself is worse.

Combine the setbacks you face and the time it takes, it’s no wonder many people feel trapped.

But there is hope.

Here is how to get yourself out of debt once and for all.

HOW TO GET OUT OF DEBT

How To Move Out With No Money Or A Job

Are you looking to change your situation and move but you don’t have any money?

Or worse, do you also not have a job? You might think your goal is hopeless, but it’s not. Here are the steps you need to take.

HOW TO MOVE OUT WITH NO MONEY AND NO JOB

Dave Ramsey’s Baby Steps

Using Dave Ramsey’s Baby Steps is great for getting your finances back on track. But you could do better with a few simple tweaks to his system.

DAVE RAMSEY BABY STEPS

I Need Money Now

Do you every say to yourself, ‘I need money now?’

Whether it is for bills or unexpected expenses, here is how to get cash fast.

In many cases, you can have cash in your hands the same day.

I NEED MONEY NOW

Survey results provided by Intelligent.