Student debt burden is a topic that many people talk about. Regardless of your preferred solution to the problem, it’s impossible to miss how important student debt is to the students who are carrying it right now. If you’re currently in college, you might worry that you’re not in the right position to carry this much student debt, which means you might think about dropping out. Here are some of the factors that might change when it comes to paying off student debt if you drop out.

How Long Will It Take to Pay Off Student Debt If You Don't Graduate College? Created By: OneClass

Amount of Debt
One big reason people drop out if they’re accumulating student debt is because they worry they’re going to end up with significantly more debt than they can handle. It’s true that dropping out of college can reduce your amount of debt; at an average of $7,100 of student debt per year, dropping out two years early could “save” you $14,200. However, this isn’t the end of the story, and staying in school could be better for your wallet.

Overall Income
Graduating with a bachelor’s degree can seriously increase how much income you’re able to make every year. According to the U.S. Bureau of Labor Statistics, those who report having “some college” make $41,704 yearly on average. Those who report having a bachelor’s degree, on the other hand, make $62,296 on average. That’s a 49% increase, which means you’ll have more free money to live and to pay off your debts.

Interest Rates and Amounts
When you pay off a loan, you’re mostly paying off interest at the beginning. Even with a relatively low interest rate, like a fairly common 4.66% interest rate for student loans, you’re still going to end up paying a lot of interest; a graduate will pay $11,944 interest, while someone who drops out before graduating will pay $13,635 interest. That means even with a lower starting point, someone who drops out before graduating is more likely to pay more interest. They’re also less likely to be eligible for refinancing.

Minimum Payments and Extra Payments
Because of the lower median income, those who drop out before graduation are more likely to make minimum payments toward their loans. These minimum payments typically cover mostly interest, with very little of the money going toward the loan itself. Those who graduate and have a higher median income are more likely to make extra payments, therefore reducing the amount of time they have to pay for their college education.

Final Time for Graduate and Non-Graduate Students
All of these factors come together to impact how much time it takes for students to pay off their school debt. A college graduate on average will likely pay off their student loans in around 19 years, while someone who dropped out will be much more likely to take around 34 years. Clearly, dropping out just isn’t the best option for people who are having a hard time with student loans.

Conclusion
If you’re experiencing problems with student debt, know that you’re not alone. Many people in the United States experience concerns regarding their student debt, but there are better ways to fix it than dropping out. Instead, look for study resources that can help you succeed in college even if you’re having a hard time right now. Graduating can make it much easier to pay off your student debt overall.