ORDQIRURUHYHQ\HDUV7KHGLVDGYDQWDJHRIGHIHUULQJORDQ
SD\PHQWVLVWKDWLWZLOOWDNH\RXORQJHUWRSD\RII\RXUORDQV)URP
a life cycle perspective, it can make sense to have an increasing
loan repayment schedule because the income of college graduates
FOLPEVDWDKLJKHUUDWHWKDQRWKHUZRUNHUV
% 6WXGHQWVPD\DOVREHHOLJLEOHIRUSULYDWHORDQVWKURXJKEDQNVRU
FUHGLWXQLRQV7KHVHDUHJHQHUDOO\OHVVDWWUDFWLYHEHFDXVHLQWHUHVW
rates are higher, and many have variable rates of interest that
FDQLQFUHDVHVWXGHQWORDQSD\PHQWVLQWKHIXWXUH/RDQWHUPVDUH
QRWVWDQGDUGL]HGDQGLWPD\EHGLI¿FXOWWRREWDLQORDQVZLWKDQ
H[WHQGHGUHSD\PHQWVFKHGXOH
% One of the downsides of student loans is that you cannot get rid of
WKHPWKURXJKEDQNUXSWF\$OVRLI\RXGLH\RXUSXEOLFORDQVDUH
IRUJLYHQEXWSULYDWHORDQVDUHQRW,I\RXEHFRPHGLVDEOHG\RXU
SXEOLFORDQGHEWZLOOJRDZD\EXWSULYDWHORDQVZRQ¶W7KHUHDUH
VRPHGLVDGYDQWDJHVRISULYDWHORDQVEH\RQGKLJKHULQWHUHVWUDWHV
,QJHQHUDOLW¶VDJRRGLGHDWRPD[LPL]HSXEOLFVWXGHQWORDQVEHIRUH
\RXEHJLQWDNLQJSULYDWHRQHV
7KH&ROOHJH%RDUGGetting Financial Aid 2015
*ROGLQDQG.DW]³/RQJ5XQ&KDQJHVLQWKH:DJH6WUXFWXUH ́
———, The Race between Education and Technology
- ([SODLQKRZHGXFDWLRQLVOLNHDQLQYHVWPHQW:KDWLVWKHFRVWRIWKH
investment, what are the payoffs, and what is the risk? - :KDWDUHWKHOLIHF\FOHLPSOLFDWLRQVRIIXQGLQJDFKLOG¶VHGXFDWLRQIRU
the parents and for the children?
Suggested Reading
Questions to Consider