We live in a society that believes in the value of education. The common notion is that if you have a degree, you have better chances of earning a higher income. But if a student accumulates $40,000 worth of student loan debt after graduation, what happens next?
College debt is a growing concern. Although statistics estimate the average college debt to be around $19,000 to $26,000 (as of 2008), it’s common for students to have $40,000 to $60,000 worth of student loan debt. For those pursuing courses such as medicine or law, it’s possible to accumulate loans reaching six digits.
Think about it. According to the National Association of Colleges and Employers (NACE) Salary Survey, the average salary of a 2010 bachelor degree holder is $47,673. If you accumulate $40,000 worth of student debt, you would be sacrificing much just to pay back your loans in the next 10 years. It gets worse for those who accumulate north of $50,000. Rather than saving for your future, you’ll be paying off your obligations when you start your professional life.
If you want to maximize the advantages of higher education, you must find ways to minimize student loan debt.
Surprising statistic
Many experts advise students to look for scholarships first before relying on student loans. Although “free money” helps reduce dependence on student loans, there is a surprising statistic that shows why students end up borrowing much more than they intend. According to a survey made by Key Bank, only 12% of students selected a school based on affordability.
Overlooking the cost of education isn’t wise. Granted, choosing a college is an important decision. However, it shouldn’t be an impractical decision. With enough research, you’ll be able to find schools that offer quality education that cost much less.Â
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