The Debt of Student loans increases with unemployment under the young generation. After the studies are done the young generation struggle in getting employed with a salary that is sustainable to living cost & repayment.
First Stepping stone after Studies
All students has a plan set out in the beginning before starting their studies. While students hope to have immediate employment after studies. This is not always the case for students. Most students receive low income at first due to experience being insufficient. While students work as inexperienced workers that are actually still learning the salary available is very low. The students need to be able to cover their living cost (which is high) and have enough in repaying their student loans.
Second stepping stone after temporary employment.
If the student was able to keep up with the payments while working with low income & temporary employment. Then the student still needs to overcome be able to repay the student loan debt without making new debt and at the interest rate of agreement. While the student will have more expenses when starting employment this is a struggle for each student starting.
Third step & conclusion of student loans
If the student was able to get permanent employment. Then the luck is on that persons side. As all know that the unemployment rate keeps dropping rapidly in south-africa. But in hope that they did receive employment & were able to pay the living expenses with sustainability. Then by this stage the debt interest that they are paying back in the payment plan has increased. Most students pays for years after they have studied on their loans. This creates a bigger problem in their future. As the student is starting their lives they struggle in going forward. While the installment of their student loans could help with this, it needs to be paid. This leaves the student to open accounts & making more debt. The debt ranges from store cards to more loans just to move forward.