Is it Wise to take on Debt for a College Education

It is not wise to assume debt for a college education. College is meant to enhance an individuals learning experience. It is not worth the debt. Besides, the person will only be trapping themselves for years to come.

Statistically, it takes the average college student 10 years or more to pay off loan debt. One will be digging a premature hole for themselves financially because once they graduate, they only have about 6 months to get the payments together. The majority of undergraduates don’t find a job for atleast a year or more. This puts them in a very difficult position.

What makes obtaining debt so attractive is that it is a “quick fix” for individuals. The rising costs of college tuition does not help either. Every year it cost an average of $1,000 more to attend school. Room and board account for the majority of a school bill. In the meantime, the student constantly has to find new ways to supplement his or her expenses. Some students choose to leave school altogether because it becomes too expensive. Books are the second most costly item in college. Some reading material costs as much as $150.00. This is only for one book!

Another reason it isn’t wise to assume debt for college is because of the (ROI). (ROI) stands for return of investment. It is unbalanced. If you think about it, it probably cost a student more than $30,000 a year to attend some learning institutions. Multiply that 4 and you have $120,000. A bacholer’s degree doesn’t earn a first year graduate that much money. On average a person will earn $25,000 for the first year. It cost 4 times that to attain the degree. So paying four times more for a piece of paper that only earns you a quarter of the cost is a waste of money. Many people do not see it that way. However, when you break it down, that is exactly the case. Not only do you make less than what you paid for the degree, now you have to worry about finding a job fast enough to make monthly payments on a loan.

There are other ways to pay for school. Getting into debt shouldn’t be one of them. It simply makes a person’s life harder more and stressful. A person should get as many grants and scholarships as possible. Work study is also a great way to help pay for school. The individual accrues work experience at the same time.

Getting an education is important, but getting into debt is not. There are other ways to offset the expenses of school and debt should be the very last resort.