Since college costs are rising, numerous recipients of student loans are facing higher debt. With a typical student loan debt of around $30,000, many people find it difficult to make ends meet while also making loan payments. Borrowers’ ability to plan for retirement or buy a home may be significantly hampered by this debt, which could have a substantial effect on their financial destiny.
It’s possible that borrowers who haven’t had to pay back their student loans for more than 3 years used their funds to take on other debt.
In July, TransUnion performed a study that revealed that more than half of the debtors of federal student loans chose to use a newly issued credit card from a bank during the pandemic. Furthermore, 36% of them submitted an application, and 31% registered for an auto loan.