Approximately 44.7 million people are still paying off their student loans, with the average amount borrowed standing at a whopping $32,731. Loans seem like a common part of the college experience, but is it helpful or harmful to your financial future?
Find out if taking out student loans is the right thing for you to do to get the career you want.
When you take out a loan, you do it because you’re not in the financial standing to pay for something in full right off the bat. Higher education is extremely important to help you achieve your career goals, but it’s also extremely expensive. There are several different price ranges for degree programs, but at the end of the day it all boils down to the amount of money you have available to invest in it now.
A small amount of debt may be a necessary evil that helps you have a brighter future. No matter what university you choose to attend, find a program that will allow you to pay as much as possible upfront. If you’re able to cover most of your tuition costs before you graduate, you’ll be able to live a lot more comfortably during your post-grad years.
Another major factor in determining whether or not to take out student loans is the potential income you’ll be making after graduation. Any degree is an investment of your time and your money. If you pay hundreds of thousands of dollars for a job that will make you 50k a year, there’s a major discrepancy in your ROI (return on investment).
When choosing your major, take some time to research your potential line of work. What positions would you be qualified for? How much will you be making upon entering the field? There’s a lot to think about, but as long as the money you’ll make outweighs the amount you borrow, you’ll be in good shape.
Student Loans- Are They Good or Bad?
There’s really no right or wrong answer to this question. It all depends on your specific circumstances, timeline, and available resources. Talk to an admissions counselor to see what your financial state would be like if you decided to go to that particular school.
Student loans can be a helpful investment in yourself that propels you into the next stage of your career. They can also be a crippling weight that prevents you from living comfortably off of your post-grad wages. It all depends on your preparation and planning before taking them on.
For tips on how to work and go to school, check out our article The Key To Working Full-Time While Going To School!