Student debt is a reality for many students as college tuition continues to rise, and it can have a major, long-term impact on your life. Not only can student debt limit your job and career opportunities, but it can also undermine your ability to achieve financial security. Here are a few reasons why student debts are bad and why it is important to take proactive steps to avoid or manage them.

First, student debt can affect your credit score. Student loans are considered “installment loans” and building positive credit means making timely payments on your student loan debt. However, if you fail to make payments or default on your student loans, it will be reflected on your credit report and can have a negative effect on your credit score. This can make it more difficult and more expensive to obtain any loan or credit card in the future, so it’s important to make your payments on time and in full.

Second, student debt can limit your career options. If you have student loan debt, it can put a strain on your financial resources and limit the number of job opportunities available to you. Student loan debt can also make it difficult to pursue certain higher-paying jobs due to requirements such as the need to relocate or to pay for professional certification.

Finally, student debt can make it hard to achieve financial security. The amount of student loan debt you graduate with affects your available net income after taxes and living expenses. This leaves you with less to invest for the future, contribute to an emergency fund, or buy a home or other big ticket items. And while student loan debt can be forgiven in certain cases, it can still remain on your credit report for years, which can further limit your financial options and opportunities.

For these reasons, it is important to take proactive steps to avoid or manage student loan debt. college. Work part-time while in school, and consider spending less by attending community college, living with a roommate, or avoiding living on campus. Once in school, research scholarships and grants to limit student loan debt. Finally, make a plan for managing student loan debt and make sure to make your payments on time in full to maintain a good credit score.