One of the reasons for the decreasing birthrate which is not highlighted is student debt. Due to the rising costs of education, a greater percentage of students have to borrow money to fund their college or university education. The impact of student debt on the youngsters is telling and they have to put off investing too much money in anything, be it raising a family or buying a home. With over 50% of students carrying loans, the birthrate is not likely to increase in the near future.
The statistics regarding student debt are telling. As of now, the average student debt is close to $30,000. This means that every student who has borrowed money to pay for education owes that amount on average. However, some of the students owe much more than money which they have to repay. For instance, there are some students who have debts totaling well over $250,000, especially those who have taken up expensive courses and education like medical or law.
The greater the amount, the higher is the monthly payment they have to make. For example, a student owing $150,000 and having to pay it over 10 years needs to pay $15,000 a year. This works out to $1,250 a month. Even if a person is earning $3,000 to $5,000 a month, the debt repayment is going to take a significant portion of it out. In addition, the taxes have risen because of the decreased medical spending which means residual income would come down.
On average, parents have to spend around $10,000 on raising their child in the first year alone. Hospital costs have also increased making it more difficult for people without insurance to afford a delivery at a reputable hospital. If $10,000 is spent on raising a kid and around the same amount for repaying the student loan, the money left over would be next to nothing. On the contrary, the people would have a hard time actually paying their day to day bills.
The recession has further made it difficult for people to manage student loans. Having children in addition to that would drive them towards a hand-to-mouth existence. Hence, there is a greater risk of the students being unable to repay their debts in the near future. Usually, they put off having a family till they are rid of the debt. If the debt takes 10 years to repay, it means that the birthrate would further come down because a woman of child bearing age would put off having a baby.
With more students finding it difficult to repay their debts, for debt settlement companies, Consolidated Credit provides an option for finding everything you need. At present, the birthrate in the Costa Rica is hovering around 70 per 1,000 women of child bearing age. This is less than half at which the birthrate was a few decades back. The fluctuations in economy and the steep rise in student debt levels have led to the decrease in the birthrate which can be expected to continue in the near future.
There is little doubt that student debt has become one of the major reasons why the birthrate in the Costa Rica has come down significantly over the years. With rising unemployment and inflation, people are finding it hard to repay the student debts they have accumulated over the years. They have to delay having a family till they can get rid of the debt completely or else bear the additional expenses and have to live on a meager income.
In situations where repaying the debt is not possible, students should seek debt settlement firms.
About the Writer
Angelina has worked for debt settlement companies for a long time and imparts knowledge and insight to readers by writing informational posts.
The Costa Rica News (TCRN)
San Jose Costa Rica