When it comes to taking out student loans for college, a common rule of thumb is not to borrow more than your starting salary will be after graduation. Of course, many students are not aware of this, and even for those that stay within this guideline, paying off student loans can be quite a headache. While experts often consider student loans to be good debt, owing money is stressful for many borrowers. An amount that seems reasonable to an 18 year-old college freshman doesn’t seem quite so reasonable when that person is 25, or 35, and still making a monthly payment.
Tag: Student Loans
Keeping up with the Joneses used to mean having a nice home, maybe a shiny new minivan. These days, it also means paying for your kids’ college education—which may very well exceed the value of your home and car combined. While footing the bill for higher education is a noble goal, prioritizing it over more important things, like your retirement, is a dangerous mistake. (more…)