Embracing Debt: The Cost of Student Loans
July 4th, 2013 | 
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Enrolling in college today requires a good deal of smarts, that is, economic smarts. Interest rates on loans have gone through the roof which means that there will be more and more students not able to enroll. This may be inefficient because there is not going to be a decrease in the cost of college tuition either.
Paying requires more when enrolling in college because the student loan will draw down interest that has to be paid. It's supposed to be an investment, but the reverse is true. And what makes the situation worse is the fact that there is no guarantee that there will be a job waiting upon graduation; at least not a top earning position in store. And then there's the gender gap when it comes to wages. This is something to think about given the economy for home ownership as well as retirement funds.
Why not the armed forces or a trade school? Sure, there is limited prestige, but the purpose of preparing for work is achieved in these cases. As a further alternative for those dead set on enrolling at a university look into schools that offer scholarships before setting sail with the navy. Some institutions will offer a grant and no loans, but the requirement is an exceptional performance in prior coursework. And not everybody has this.
The cost of higher education will not magically disappear. So, let this be a lesson on preparation. It's key to have money for a child before they grow up so that their lives are tad easier, and in terms of fiscal responsibility it falls on the home as well as the congress that keeps on adding to the woes of an already disturbing economic system. Student loans cost an arm and a leg for anyone without the steady flow of funds and this makes for a student that may or may not perform as well with the stress.
Choose the better paying career that will be the most rewarding and for which it's possible to prep for. These three factors can help to avoid financial ruin later in life.
Paying requires more when enrolling in college because the student loan will draw down interest that has to be paid. It's supposed to be an investment, but the reverse is true. And what makes the situation worse is the fact that there is no guarantee that there will be a job waiting upon graduation; at least not a top earning position in store. And then there's the gender gap when it comes to wages. This is something to think about given the economy for home ownership as well as retirement funds.
Why not the armed forces or a trade school? Sure, there is limited prestige, but the purpose of preparing for work is achieved in these cases. As a further alternative for those dead set on enrolling at a university look into schools that offer scholarships before setting sail with the navy. Some institutions will offer a grant and no loans, but the requirement is an exceptional performance in prior coursework. And not everybody has this.
The cost of higher education will not magically disappear. So, let this be a lesson on preparation. It's key to have money for a child before they grow up so that their lives are tad easier, and in terms of fiscal responsibility it falls on the home as well as the congress that keeps on adding to the woes of an already disturbing economic system. Student loans cost an arm and a leg for anyone without the steady flow of funds and this makes for a student that may or may not perform as well with the stress.
Choose the better paying career that will be the most rewarding and for which it's possible to prep for. These three factors can help to avoid financial ruin later in life.
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