Are you planning to send a young person you love to college soon? Great! It’s a wonderful thing to plan for the future and to get a good education that will last a lifetime. What you don’t want to last a lifetime is the student loan you used to get them there.
Most colleges have a program that requires students to learn the facts about any college loans they take out while in school. However, it seems that many students in the past have just considered this a formality and didn’t really take it seriously.
Then, years later, they leave college, unable to make the payments and their debt continues to climb. This creates a snowball effect that never gets better with added interest, as well.
How can you stop this debt spiral before it gets out of control? By planning your college curriculum in such a way that you will be sure you are going to succeed in your job and make enough money to justify the debt!
If more students and parents thought of it this way rather than just going to college as a matter of tradition, it would be better for all concerned.
If you are helping a young person prepare for college, learn the ropes about student debt and study ways to make sure your degree pays off before investing your life savings into it.
Here are some great resources to help students decide which type of student loan to consider. There are pros and cons to both federal loans and private student loans, but it’s more important to think about how you are going to use your degree after graduation than it is to learn how much you can borrow.
Check into scholarship opportunities as well as work-study programs, and other ways your child might be able to supplement what they borrow in loans. If they work while attending college, they may be able to avoid some of the debt that can haunt them for years after their graduation.
Doing a little research now can save a lot of stress later and it’s always best to plan and choose an industry such as FinTech (Financial Technology) that is promising that will likely continue to increase their salary and job opportunities into the distant future.
Choose creative jobs that require less manual labor and more high-level independent thinking. This may secure their job more than anything they can learn in school. Some believe the robots will do all of the manual labor within 10 years.