Student Loan Insanity
You have to go to college to get a good job right? You are wise to take out student loans if you cannot afford to pay for college right? The government will forgive your student loans so you don’t have to repay them right? WRONG! Check out the following quote from Forbes.
The rate of borrowers who are in default or more than 90 days past due is approaching 40% and total student loan debt is around $1.4 trillion, making it sound like this is a problem of out-of-control ballooning debt. However, the average student loan balance for students in default is only $16,381 according to a recent report by Demos, virtually identical to the $15,654 balance for people paying on their student loans. The oft-highlighted stories of the humanities major with a six-figure loan balance is not a good description of the situation.
In contrast, a second group in default are the strategic defaulters. They may have jobs and plenty of income, but they are not paying their student loans mainly because politicians like Senator Bernie Sanders keep promising them student loan forgiveness.
Will college help you to secure a good job? Probably, but education alone will not do this. Learning to work hard is something that will help you in ways that education never will. Sure you can learn how to work after getting an education, but there is something about someone who works their way through college that is extremely influential in a company’s decision to hire someone. Think about it this way. If you have the choice of hiring someone who has been working for years and has excellent references because of their hard work versus hiring someone who has never worked a day in their life, but has education, who would you rather hire?
For those of you that said you would rather hire the educated person, then someone has been lying to you and telling you that education is the key to getting a job. Education alone will not ensure that you will get a job!
So if you go to college, take out a bunch of student loans, and do not get a job then how will you be able to repay your loans? Do you understand that your loans WILL NOT be forgiven, except for a very few who actually qualify? Do you understand that you will NEVER get away from your student loans unless you pay them off or die? The reality is that there are a few loans that are being forgiven, less than 0.01%, but the stipulation is that you typically are going to have to have always made your payments on time, not missing one or paying late once and you will almost always have to wait ten years for this to occur. Most student loan terms are for ten years or less, so student loans are really not being forgiven because most people will not ever qualify and if they do they would have been far better off paying off their loan then waiting to have it forgiven.
Click here to learn more about repayment plans and what they do to the amount of money you end up paying.
There are a couple of forgiveness plans such as the teacher loan forgiveness that will help you more immediately, but with it as well as the Perkins loan cancellation you need to work in a low income or qualifying public service job to qualify and you must do so for five consecutive years. After those five years you will get a percentage of your loans forgiven, but not the full amount.
No matter how you slice it, you will always be better off to pay off your student loans as quickly as you can. Your best option though is to never take out student loans in the first place. If that means you have to work extra or even take an extra year to finish your schooling then that would be a much better choice than going into debt.
Lastly, your choice of schools, your commitment to do well in high school, and your dedication to applying for scholarships will make a huge impact on how much you will actually have to pay out of your pocket for college. With a little bit of planning, research, and hard work you can go to college without debt, but it has to be a decision you make and you will have to work for it. People in America need to stop thinking that someone else is going to pay for them to do something and we need to quit trying to get the blessing without waiting for it or working for it. If we really want to make America great again then we need to turn back to God, follow His instructions, and we need to learn to work for and to wait for His blessing. We are not owed anything in this world, no matter what anyone may try to tell you. It’s time to change our thinking.
If you want to explore going to college debt free further please contact me and we will put together a plan for you that will work if you are willing to. If you already have student loans and you want the burden off of your neck then let’s figure out how you can do it quickly so that you can get on with your life and start saving some of the money that you are working for.
Proverbs 17:16 “Why should fools have money in hand to buy wisdom, when they are not able to understand it?”
Proverbs 10:4 “Lazy hands make for poverty, but diligent hands bring wealth.”
Lamentations 3:24-26 “‘The LORD is my portion,’ says my soul, ‘Therefore I have hope in Him.’ The LORD is good to those who wait for Him, To the person who seeks Him. It is good that he waits silently For the salvation of the LORD.”