Student loan debt is rising rapidly. It is true that with the help of the student loan, most of the students can fund their higher studies.

But, unfortunately, after completing their studies, they're not able to repay the student loan debt. Because most of the students are not getting good jobs as per their qualification.

Now, most of the students prefer to move back to their parent’s home after completing their studies instead of starting their financial life independently.

Why are students moving back to their parent’s nest?

Pew Research Center has reported that "In 2014, 32 percent of millennials were living in their parent's home. Just 14 percent were living alone or with roommates. Now, more 18- to 34-year-olds live at home with their parents than in any other arrangement. 36 percent of graduating seniors plan to live at home at least a year or more after graduation."

1 Student loan debt: The villain

The student loan debt burden is the villain in many students’ life.

As per a recent survey conducted by the Young Money, most of the millennials won't be able to get out of their student loan debt until the age of 35 or more.

It is quite obvious that paying off this huge debt will take longer as they have less chance to get a good paying job.

Thus, they are unable to achieve some important goals in their life like buying a house, building an emergency fund, saving for retirement, and starting a family.

2 Credit card debt burden

Using credit cards to mitigate living cost has become a trend. Most of the students are managing their living cost with the help of the credit cards. They are not aware of its pitfall.

But, students are using their plastics and living beyond their means. Most of the students are asking their parents to pay off the bill, which is a sheer irresponsibility.

A few are taking out another personal loan to pay off the bills and thus are accumulating another higher interest debt.

After completing studies, they are facing problems like getting rejected for a job, paying higher rent, and not qualifying for favorable auto loan terms. They are failing to build a good credit score as well.

Sometimes, they have no other choice than to accept a job that is offering a lower salary than their degree or ability. Thus, they have to move back to their parents’ home to live to cut the living cost while paying off the credit card debt.

3 Sky-high rent and sluggish wage growth

As I said earlier that most of the times, after completing studies, people are not able to buy or rent a house due to poor salary or sluggish wage growth.

As per the Economic Policy Institute, “not hiring new college grads picks up, but the wages have not budged. Now, people are getting inflated price everywhere; so a low salary is not sufficient for livelihood”.

4 The burden of monthly bills

Recent graduates are failing to move out on their own due to the huge burden of monthly bills. They have to make the monthly student loan payments, utility bills, rent, gas, credit card bill, and grocery with their salary.

Unfortunately, most of the time, they spend all the money they earn on the basic necessities (utility, rent, and grocery).

They simply can't afford their monthly payments (student loan payments, credit card, and rent). Thus, they prefer to stay with their parents to minimize their living cost so that they can pay off their financial obligations.

5 Lack of saving

Most of the students underestimate the power of a cash cushion. They usually spend the whole pocket money during their college days. Thus, they lack the ability to live on their own just after completing their studies.

In addition to this, living with parents is cheaper than to rent a house close to their job.

Well, lastly, I have to agree that moving back to the parent’s nest is not always a bad thing.