1. High Debt Levels: Many graduates leave college with tens of thousands of dollars in debt, which can take years, if not decades, to pay off. This can lead to financial stress and impact life choices, such as buying a home or saving for retirement.
2. Underemployment: Graduates often find themselves in jobs that don’t require a degree or that pay significantly less than anticipated. This can make it challenging to manage monthly loan payments.
3. Interest Accumulation: Student loans can accrue significant interest over time, increasing the overall debt burden. This can feel overwhelming, especially if graduates struggle to find stable employment.
4. Mental Health Impact: The stress of debt can affect mental health, leading to anxiety and depression, which can further impact job performance and life satisfaction.
5. Economic Consequences: High levels of student debt can contribute to broader economic issues, as young adults may delay major purchases, such as homes or cars, affecting economic growth.
6. Policy Discussions: The conversation around student debt has sparked discussions about loan forgiveness, income-driven repayment plans, and the need for reforms in higher education funding.

Addressing the issue of student debt requires a multifaceted approach, including better financial literacy education, more affordable education options, and support for graduates navigating the job market.