Are student loans worth it? A conversation for the next generation

Source: Grant Cochrane, freedigitalphotos.net

“Success is a measure of what one achieves, and what one endures to do so.” Wes Fessler

Most people would agree that college isn’t for everyone, but when is the investment worth the money?

Many parents don’t want their children to be in debt for the rest of their lives, but taking out student loans isn’t a debt sentence.

When I think back about my own experience, I received college scholarships and grants but I still had to barrow $26,000. Would I do it all over again? Of course. College is not just about getting a good academic education it is also about learning self-discipline and self-sufficiency. College is an investment that should be well thought out.

Car loan vs. College loan

There are some people that avoid getting student loans because they see it as an overwhelming amount of debt. Yet, some of these same people are willing to go get a loan for car which often is accompanied by inflated interest rates. In my opinion, it is much wiser to invest in your education, which has the potential to help you earn more money in the future. While on the other hand, a car is going to begin depreciating as soon as it leaves the lot.

Are their any Guarantees?

Just getting a college education does not guarantee that you’re going to earn a lot of money in the future. However, college is what you make of it, and if you put in a good solid effort to do well you have a greater chance of seeing your investment return great dividends for the rest of your life.

Try to Avoid Last Minute Job Searching

It is true, a lot of students are leaving college without good job prospects and tons of debt. But while you are in college began grooming yourself for what is to come. What do I mean? Well get a job during college so that you can become accustomed to working regularly. Thus employers will see that you not only have the academic skills, but a practical skills and solid work history as well, which will give you a leg up on your competition. Also start looking for a job well before you graduate.

In general, I believe it is ideal not to take out student loans in college if you can afford to pay your way through. But If paying outright is not an option then, yes, by all means take out loans, sparingly and responsibly with a plan in place to repay them immediately.

Before your child enters college, teach them the importance of paying their bills on time, set a good foundation for healthy financial practices in your own home. Parents are children’s first teachers so teach positive habits early and they will learn the value of money and responsibility.

Related Posts:

Finance Friday: How to Save For Your Child’s College Tuition Practically

Tips For College Bound Kids

3 Rules for Managing Student Loans Smartly

Learning How to Manage Finances in College

Tips to Get Rid of Student Loans

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