I just wanted us to discuss some questions to ask yourself before taking out student loans. A must read for all students considering going to college.
If you’re about to head off to school – whether at the college or graduate level – there’s a simple fact that you’ll probably want to keep in mind these days: thanks to the skyrocketing cost of higher education, few people are able to afford the cost of education on their own. This means that they are forced to take out student loans to pay their way.
Depending on where you’re going and how much you have saved up, these loans may run you into the six-figure debt range. This is not an insignificant issue. With the economy stagnant even as loan burdens continue to grow, more and more graduates are finding themselves paralyzed under the weight of their student debt.
It’s important to keep these potential ramifications in mind before taking out those loans and heading off to school. Specifically, here are a few key questions to ask yourself:
How much will my loans truly cost?
Due largely to interest, the amount that you take out in loans will likely not equal the final sum that you pay. On that note, it is important to consult a loan calculator and determine your average pay installments before proceeding.
Have I exhausted all other options?
There are numerous ways to reduce the expense of higher education and save yourself a considerable amount of money down the road. This includes applying for financial assistance, seeking out focused scholarships, attending a different institution, and consulting a Cavalry Portfolio Services advisor to minimize your asset balance.
What is my risk/reward of going to school?
It was once a no-brainer that a higher education would pay off admirably in the long run, therefore ensuring that any student loans could be prudently repaid. But an advanced degree no longer confers the same financial guarantee that it once did. What is the risk/reward payoff of going to school? Are the debts worth the added earnings in the long run? These are difficult yet important issues to consider.
Asking yourself these questions can hopefully help you make an educated decision and embark upon your educational future with a strong sense of your financial situation in mind. While most loans can be paid off over time, you don’t want to find yourself regretting those payments ten years down the road.