Sending your child to college is a dream for many parents. However, with the rising costs of higher education many are foregoing that dream. For some families attending college is just too much of a costly investment and in today's job market does not necessarily guarantee job security the way it used to. While college graduates still earn significantly more than those without a college degree, college costs can follow students for years and most graduates do not pay off their student loans until well into their 30s or 40s. In 2012, the average student debt was about $26,000 and that was just for those that earned a bachelor's degree.
Many parents and students forget that college is a huge financial investment that needs to be prepared for well in advance. This infographic on the history of student loan debt by Consolidated Credit can help you get an idea of how student debt has grown through the years. College is not a bad investment for your children but is one that needs to be thought through carefully especially in a time where college costs are increasing but financial aid is decreasing. Parents and students should always look to grants and scholarships as their first form of financial aid but with dwindling funds it can be difficult to secure these funds. Many students will eventually have to turn to student loans to help pay for their education. However, with careful planning and smart budgeting families can find cost effective ways to pay for college.
Posted by Jenna | Wednesday, October 30, 2013