The best way to get out of debt is to stay out of debt to start. Start your kids off on the right path to a sound financial future by teaching them the harsh realities of student loans, and even plan to avoid them entirely.
The ever-growing cost of tuition has made it increasingly challenging for the average household to pay for education with out assistance. The total student loan debt in the United States has grown to over $1 trillion, and continues to grow at 10 percent a year, with the average student debt ranging around $25,000 a person. Some believe that student loans are a worthwhile “investment” in the future—and for some careers, a college degree is exactly that. But with the rate of interest on student loans higher than ever, a student loan will take even more years than previously to pay off. This means that your college hopeful will start off their adult life, before they even have a paying job, facing down thousands of dollars of debt. Rather than setting up a secure financial future, student loans can put that security in jeopardy.
Take a look at this detailed ConsolidatedCredit infographic about the actual cost of higher education, and learn more about student loans, long-term debt, and how to manage that debt.
Shocking, isn’t it? Consider alternatives, some mentioned in this blog, on finding ways to finance post-high school studies.