College student loans have long been a part of obtaining a college education. For the record, both my wife and I borrowed money and were in debt when we graduated, as did our children when they attended college.
We assumed that we had no other option for obtaining a college education. And then after graduation, the assumption was repaying college loans was a life-long endeavor.
College Loan Indebtedness Dangerous To Your Career
If I can give any career change advice it would be that students understand the impact of borrowing money to attend college. Most likely, your choice to borrow for your education will be with you for years to come.
In my role in teaching financial peace classes, I have talked to many financially strapped individuals whose career path has been greatly impacted by the tremendous amount owed for their college student loans.
For the past several years in teaching these classes, it seems little thought is given by students or their parents as to how long it will take to pay off student loans.
I suppose if the college student loans were all that college graduates would owe, there would be no problem financially. Now I am discovering that it is not unusual for graduates (if they did graduate) to have payments of $500 or $600 per month.
Added to that are housing costs, car loans, furniture loans, and of course, credit cards with huge balances.
During these troubled financial times, even getting a job is not certain. So borrowing with the idea that future earnings will be adequate to pay for your college education is suspect.
Consolidating your student loan is one of those necessary evils when it comes to surviving life after student loans. This is how these smart graduates extend paying student loans over their lifetime!
Job loss, health issues, returning to school for more education, are some of the realities of life that impact your ability to pay your student loan.
While both of our children had student loans, our daughter paid hers off in under 4 years after graduating while our son has chosen the lifetime to pay approach.
Impacting his ability to keep current with student loan payments was a spinal cord injury that made him unemployable for a number of years. He was able to consolidate several of his college student loans but discovered the hard way that student loans live forever if not paid off.
You never want to assume that ignoring student loans will make them go away. They don't! And if your payment is less than the interest on your student loan, the balance owing increases.
Consolidating your student loans into a more manageable monthly payment does give some relief when financial times are tough, but find someway to rid yourself of your college loan debt if possible.
Paying off your college loan debt as soon as possible frees you to concentrate on using those funds to build wealth, the reason you most likely borrowed all that money in the first place!
I am sure the book I am going to recommend was not on you recommended reading list for any of your classes. Yet if it is a strategy to pay off those student loans, I can think of no better book for you to read!