How Excessive Student Loan Debt Holds Back Career Progression

Going to college is supposed to open up doors to better career opportunities, and there’s no doubt that a degree will get you into positions that you’d be passed over for otherwise. But, new events are beginning to show that carrying excessive student loan debt might counteract some of the benefits of higher education. Depending upon your field of study, level of degree and the amount of your remaining loan balance, you could find that your career prospects become limited by the following effects of carrying higher amounts of educational debt.

Excessive Debt Limits Continuing Education Opportunities

Every year, students flock to the advisory offices of colleges and universities seeking to know which degree to pursue to become a medical doctor, high school principal and other highly esteemed career positions. Unfortunately, many of those students may run out of funding before they can complete their Master’s or PHD.

Getting stuck in a lower level position is a reality for many graduates with a four-year degree that can’t move on to the next phase of their education. Even sadder, this issue affects everyone, since it lowers the amount of candidates who are eligible to work in high demand fields, such as medicine and education.

Debt Carriers Are More Tempted to Take Less Attractive Job Offers

Students who are graduating or exiting an educational program often begin their job search right away, especially when they have student loan payments that are about to become due. With huge payments looming over their heads, many borrowers feel forced to take the first job offer they receive. Or, they may be tempted to take the safest one, even if it pays less than another type.

This is how people end up working as a supermarket manager when they have a health care degree. While nothing’s wrong with managing a supermarket, it could hold someone back from making progress in their chosen career field, if retail management was not in their original plans.

Borrowers May Opt Out of Making Riskier Career Moves

In today’s job market, people often need to be willing to relocate or change companies to make progress in their careers. Unfortunately, moving to an area with a higher cost of living might be too risky of a move to make for someone with high levels of debt. The same can also be true about switching careers. Staying loyal to a company that offers reliable employment might be the choice people make over moving to a different one with higher pay that could come with a higher risk of more frequent turnover.

Choosing Unsatisfying Positions Leads to Burnout

At the end of the day, students go to school to pursue their passion. Finding themselves stuck in a job that is psychologically unrewarding can lead to burnout that impacts their entire future. The same is also true regarding people who have to work two or three jobs just to pay off their loans.

Unfortunately, some of the labor force may give up on working in their preferred career completely. In a worst-case scenario, burnout could cause more workers to just quit or perform below their abilities in their position. Making sure to find ways to keep loan payments affordable helps people to maintain their motivation to continue building stable and inspiring careers.

Students take out loans out of good faith that it will pay off in the future. Yet, a bright-eyed student who is inspired to change the world might not realize that they’ll have to make choices based upon their debt that could hold them back from finding success. Whether you’ve already realized that you’re limited on career options due to student debt or feel empathy for those who are, working together to fight for zero interest loans can help everyone benefit from a workforce that has the freedom to enter careers where they can fully utilize the skills and expertise they gained from seeking a higher education.