Posted on: January 20, 2018 by Lucy Small

Category: Social Credit Views

     The basic needs of every human being are critical in understanding what must be adequately fulfilled in order for individuals to achieve a state of well-being. With Maslow’s principles still very relevant to the daily functioning of every human being, it’s no wonder the world population is struggling to fulfil these needs. A student loan is a typical example of humans being forced to sacrifice their basic needs in order to fulfill a psychological need. This is not a sustainable approach to creating a personal Utopia, and here’s why.

Student Loans Are A Long-Term Commitment

According to an old proverb, the borrower is a slave to the lender. A student loan is, therefore, a commitment from a very young age and students find it difficult to avoid the debt trap after they’re done with their studies. This is because the edge has been taken off the sting of debt. When students accept that student loan debt is the only way to fund their studies, they are already being conditioned to believe that loans are the only means of satisfying their psychological needs at the risk of disadvantaging their basic needs.

Suffocating in Debt

When a nation’s student loan debt tips the trillion dollar scale, as it has done in the United States, it’s cause for concern. Average households struggle to make ends meet, and, with an average installment of $222 per month just on student loan debt repayments, it makes it difficult to end the cycle of debt. A recent survey reveals that millennials are willing to make radical choices to get rid of student loan debt. We are dealing with a desperate nation when young people rate their freedom of choice lower than their obligation to the banks.

A Better Approach

By acquiring knowledge of the Social Credit analysis of the present financial system, students will have a better understanding of their approach to student loans and to other types of debt. This is because the loan is only presented as an option, not the only solution to the problem. Unemployment and underemployment statistics for graduates reflect that seeking that coveted degree is still a worthy exercise, but it should not be at the expense of basic financial security. This means, under the current financial set-up, seeking alternative sources of funding for those degrees such as taking on part-time work, studying part-time while fully employed, working towards bursaries and scholarships, and more.

In a world where the first option for any type of funding is debt, students find it increasingly hard to keep up without conforming to the behavior of the masses. The expectations put on students to have the ultimate college experience do not make this any easier and are often the catalyst to the debt cycle. By approaching a college degree as a psychological need and not as a basic need, students will be able to separate their desire for instant gratification and approach their studies a little differently. Hopefully, they will find a way to avoid the odious student loan.


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