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Student Loans and Debt

Student Loan Debt has been a disaster for many people.

High debt load. If you are borrowing $10,000 to $20,000 per year to go to college you will have a large debt if you graduate.

Dropping out of College Student Loans

Dropping out of College. If you do not finish your degree you will still have to repay all the money you borrowed. The education you received may not increase your potential job earnings.

Difficulty finding employment. If you cannot find a high paying job in your field you will still have to repay your loans. Many degrees have a very small market for people in that field.

Degrees with No Available Jobs

When I was in college a lot of people would major in Forestry. At that time the US Forest Service and BLM were the main employers for people with a Forestry degree. The Forest Service was not hiring full time employees, only summer temporary help. So you could spend four years to get a degree to get a summer job that was available to people with or without a degree.

I have a friend that majored in Anthropology.  The only jobs available in her field were teaching Anthropology.

Repaying Student Loans

Limited repayment options. When you borrow money you are expected to pay it back. The lender can set the terms. If you are not making enough money to pay off your loans interest will continue to add to your debt.

High payments. It is not uncommon for people to owe $1,000 to $2,000 per month to pay off their student loans. Your rent, car payments and life will be squeezed into the rest of your earnings.

High interest rates. Interest on student loans is like the old line about death and taxes. The only things that never go away are student loan interest and taxes.

It's important to understand the risks and benefits of student loans and to borrow responsibly to avoid financial strain in the future.

Unless you have a solid job and future income path, do not take out student loans

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