![]() ![]() "Borrowing first without understanding the terms of your debt and how it will impact your debt-to-income ratios is never a good idea, and student loans are certainly no exception."įurther, it really depends on where you go to school as well. "Too few borrowers take the time to project their total student loan debt-load with salaries in the field they’re pursuing with their degree, as well as what options will be available when they go into repayment," he says. Brainard says students who borrow the full amount of student loans available without first figuring out how much they actually need for an academic year are setting themselves up for unnecessary financial stress after graduation. The Problem With Borrowing Money For Collegeīorrowing for college could absolutely help you earn more money when you graduate, but there are plenty of pitfalls to watch out for. Less than high school diploma: $592 per week.In fact, the most recent statistics from BLS.gov show the following median weekly earnings based on educational attainment nationwide: According to the Bureau of Labor Statistics, earnings increase based on educational attainment across every industry, and there are no exceptions to this rule. The reality is, attending college is still a good use of time and money. He also points out that rates are currently as low as 3 or 3.5 percent, which makes borrowing for college incredibly affordable. "If they have exhausted their scholarships and their parents don’t have a 529 plan, borrowing responsibly, and then picking the right major, is a fantastic investment in their future," says Winnie. ![]() In instances where students do not have access to extra funds during college, private student loans may be the only tool to help afford textbooks, materials, and even college tuition. Steve Winnie, CEO of CampusDoor, says that even private student loans have their place when it comes to making up financial aid shortfalls. "When used strategically, student loans can be a gateway to higher-earnings and career satisfaction over a lifetime." "Even the comparatively lower price-tags of community colleges and in-state schools are cost-prohibitive for many," says Brainard. ![]()
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