Student loan debt has been taking over, dictating millennials’ life choices.
An FKD Feature exclusive

Everyone knows that student loans are a pain and take time to pay off, but the struggle that comes with paying off student-loan debt can easily direct someone’s life choices.

Lower credit score

Paying off a student loan means making monthly payments. Not making payments on time can drastically lower your credit score, and having a low credit score is never a good situation. According to TransUnion, a credit reporting agency, 43 percent of borrowers from the ages 18 to 36 have bad credit.

A bad credit score has the power to dictate life decisions on its own and could very easily be the cause of a lifetime of struggle. Bad credit means added difficulty when trying to get approved for an apartment, trying to get a cellphone contract and can even increase insurance premiums.

While bad credit has a huge impact on someone’s life and will impact life decisions overall, there are other ways that student-loan debt can impact someone’s life decisions, even if they have good credit.


Deciding to start a business is a big step in life and is never easy to begin with. But having to pay off students loans can make it more difficult to start a business, or even deter people from trying. There are countless stories of young entrepreneurs trying to start their own businesses but failing to do so, and many times it’s because their student loans are holding them back.

Being in debt makes it 10 times more difficult to fund the rise of a business, and even those who have had success with their startups saw that it was incredibly difficult to secure their finances because of their student loans. Oftentimes, young entrepreneurs need to sell their companies because most of their money is used to pay their student loans rather than fund their business.

The issue of having enough money to finance a business while paying off their debt also translates into millennials’ lives when they want to move out.

Buying a home

Student-loan debt has an incredible impact on whether people can buy their own home. Many people don’t have enough saved to be able to afford a mortgage or even the down payment on a house. Student-loan debt can also create issues when you’re applying for a mortgage.

Some millennials can’t even afford to rent apartments because of their student debt. The number of people living at home has been on the rise, and some 21.6 million young adults from the ages 24 to 34 are living with their parents today. Similar to the issue of entrepreneurship, millennials aren’t making enough to pay both their student loans and rent at the same time.


Aside from all the other individual issues that go along with student-loan debt, a bad credit score because of missed or late payments will inevitably cause a handful of issues all on its own. Millennials have become so focused on paying off their student loans that they let it dictate their decisions in life.

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Header image: Getty Images


Posted 03.29.2017 - 05:33 pm EDT