| You cannot ignore the fact that the cost of a college | | | | How does it all add up? Considering again the Federal |
| education has soared through the roof. This | | | | Perkins Loan, which allows you to pay back the |
| threatens to make a higher education for pursuing a | | | | entire amount with interest in 10 years, it will take |
| dream career an impossible task. Therefore, students | | | | away 1 - 2 years of your starting salary but spread |
| and their parents are compelled to opt for education | | | | over a 10-year term. The monthly payment would |
| loans. | | | | not be over $430 for the whole term, while your |
| Student loans have become a part of life. This is no | | | | salary keeps going up. |
| wonder, considering the facts and figures that clarify | | | | How Can You Plan Your College Education Loan? |
| the earning potential of college graduates. There has | | | | Well, how can you plan for the loan? Before you |
| been a series of nationwide surveys on student loans | | | | decide on a loan amount, you need to assess your |
| and their implications. The fact is that each college | | | | different options: |
| graduate ended up earning $1 million (according to the | | | | 1. Grants and Scholarships: Grants and scholarships are |
| United States Census Bureau) more throughout his | | | | referred to as free money, as they are not |
| her career than a high school graduate. | | | | expected to be repaid. They fund education |
| The Advantages | | | | completely depending on certain criteria. In this case, |
| Many people are confused as to whether they will be | | | | you would hardly opt for loan if you have a choice. |
| ever able to repay their loans completely, given the | | | | 2. Work-Study Programs: On- or-off-campus Federal |
| high rates of interest on various student loans. | | | | programs let students work part-time to offset their |
| However, the advantages of taking out a student | | | | expenses. Depending on your savings, your loan |
| loan may far outweigh the costs: | | | | amount can be reduced up to 50%. |
| 1. College educated people advance higher and faster | | | | 3. Tuition Payment Plans: Spreading out of tuition and |
| in their careers. | | | | fees eases the burden of a one-time payment for |
| 2. The average earnings of the college educated are | | | | families who have discretionary income. |
| $2.1 million and this figure is $1.2 million for high school | | | | 4. Home Equity Loans: This can possibly eliminate the |
| graduates. Still, considering one takes out a Federal | | | | necessity to take out a student loan. |
| Perkins Loan (current interest rate of 5% per year), | | | | 5. Funding Through Assets: Through the sale of |
| and borrows the maximum amount permissible, which | | | | stocks and/or 401 (k) plans, families cab fund their |
| is $40,000, the total repayment you would make | | | | children's education in order that they reduce the |
| over a 10-year term would be somewhere close to | | | | student loan component. |
| $51,000. | | | | With planned self-financing, you can strengthen your |
| 3. Contrast this against average salaries of college | | | | position to fund your higher education and reduce |
| graduates. A nursing job would get you $38,788; | | | | your student loan debt. By utilizing student loans to |
| Chemical engineering $53,659. | | | | either partly or completely fund your education, you |
| 4. Salaries are increasing steadily at a healthy pace | | | | will ensure yourself a lifetime of income long after |
| from 11.2% for elementary school teachers to 5.3% | | | | the loan is repaid. |
| for civil engineers and 2.1% for chemical engineers. | | | | |