Saving for College - Before Your Child Takes Out a Student Loan, Consider the Long-Term Repercussions
Student loans are the only way many people can afford to attend college. For others, taking out a loan is a way to attend a more expensive college. Student loans can be great tools, but they can also have long-term repercussions, especially where career choices are concerned.
For example, say your child takes out student loans totaling $80,000. Roughly speaking, the student will pay over $800 per month for ten years to pay off the loan. Depending on the field they hope to enter, that level of payment may make it impossible to take a job in that career field.
If your child is likely to be motivated more by a choice of career than by a career’s earning potential, student loans may make choosing a satisfying career a lot more difficult. When you consider student loans, don’t just think about how to pay for college consider the long-term impact as well.