College Student Loan Debt Limiting Career Options?
Categories: Saving and Paying for College
Most of us agree that obtaining a college degree will give students more opportunities for their future. Many students (and families) must turn to student loans in order to pay a portion (if not the majority depending on the individual situation) of their college education. Some of us have heard the phrase “College loan debt is good debt” and so we don’t worry about how much debt we are actually amassing during our college career. That is, we don’t worry until it’s time to repay those loans.
Every day, our office works with students and their families to help them understand the repayment commitment they are making when obtaining a loan for x amount of dollars. Payments can be spread out over 10 years, and in many cases extended out even longer, and it’s important for students to truly understand the amount per month that they are committing to paying upon graduation.
This article by Moneywatch describes how excessive college debt can lead to students looking towards career options that they may not necessarily find fulfilling, but are the ones available that will be able to help them manage their debt. It definitely sheds some light on a topic that many do not focus on until after graduation, and it is an important point family’s should discuss as students begin to determine which college to attend this Fall.
You can check out our user-friendly Student Loan Repayment calculator here. If you would like to schedule an appointment to discuss college funding options and review what a loan payment could look like based on how much you or your family may need to borrow, please call our office at 888.7.GRADUATE ext. 119
Until next time,
Val
This is a topic I am seeing being discussed more and more on shows regarding personal finances. Many people asking questions are ones who are facing massive amounts of loan debt with no idea how to deal with it. It's important to know the best way to deal with student loan debt is to have thought about it, long before it is due.
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Your point is well taken, Val. I work with many recent college grads who have very large student loan payments and have entered a profession with a very low starting salary. They had no idea about what their financial life would look like once they had graduated college, got an apartment, bought a car, and had to eat - much before considering having to pay back student loans. It's important to borrow wisely and look for scholarships to help reduce future loan debt, while allowing you do to what you want to do!
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Val, this article is very eye-opening. It's hard enough to choose a college based on location, major, student activites and size without the consideration of the amount of student loan debt I will be accumulating. I guess it's easy to imagine that I will be making enough money to pay it all back. Without someone to tell us how much we will owe each month, reality just doesn't set in. Thanks for keeping it real!
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