In her article, "Its Time to Rethink College Debt," Laura Rowley writes about the emotional impact that taking out loans has on students. The student profiled was shocked to learn that she could find a job for only half the salary than she was told by her school counselor.
Rowley writes that students need to reassess the risk involved in taking out loans and not earning enough to repay them. She also says to stay away from private loans because you could owe double the amount as a gov't loan because of higher interest rates.
Other important facts:
- Make sure your yearly loan repayment is not more than 10-15% of your salary.
- A manual worker may end up with a higher standard of living than a professional because of not owing loans.
- State schools offer great value because of their low tuition rates.
- Don't borrow in total more than your expected starting salary.
- Start a 529 plan early to fund your childs education.
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