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How far into debt is OK to pay for college?
Considering your eventual earnings, how much debt would you be comfortable incurring to get a degree that will help you earn a decent wage? $10K? $20K, $40K? How far into debt could you justify?
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November 02, 2009 06:27 PM
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I would base and metric for determining what about of schooling debt would be acceptable on the potential income of my chosen career 5 to 10 years out. I feel that going as high as the anticipated total of one year's salary 5 to 10 years after graduating is a fair top level.
If you finish school at 22, ten years out you're 32; you should still have 33 active years in that career. Even if you exclude there first ten years of income, and only had raises that were tagged to inflation after that, your overall cost of higher education would only be a 3% when measured against all of the income which you generated from that career. Realistically, your income over that period would be much higher, and that already low 3% drops even lower.
Under this scale, amounts of $40-75K are justified. For some professions even higher.
If you finish school at 22, ten years out you're 32; you should still have 33 active years in that career. Even if you exclude there first ten years of income, and only had raises that were tagged to inflation after that, your overall cost of higher education would only be a 3% when measured against all of the income which you generated from that career. Realistically, your income over that period would be much higher, and that already low 3% drops even lower.
Under this scale, amounts of $40-75K are justified. For some professions even higher.
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November 02, 2009 09:37 PM
http://www.zestbit.com/wyattbobo/view/Personal-Loans.aspx
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As you stated, it depends on the kind of income you plan to earn within the first few years after graduation. You don't want to be paying off these loans for the next 10-20 years.
Here is an article on things to think about before personal loans are withdrawn.
Just be careful and make sure you are taking out the bare minimum. Try to get a part time job to help with your personal expenses.
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Here is an article on things to think about before personal loans are withdrawn.
Just be careful and make sure you are taking out the bare minimum. Try to get a part time job to help with your personal expenses.
http://www.zestbit.com/wyattbobo/view/Personal-Loans.aspx
http://debtreliefusa.org Helpful Answer?
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