Student Loan Forgiveness and College Decisions - Slimmer Payments

Student Loan Forgiveness and College Decisions

College Student In Bubble Surrounded By Books

Joe Biden will soon be sworn in as our 46th President. Many Americans have been thinking about how that will impact their personal finances, especially college bound students and their parents.

Out on the campaign trail, the Biden-Harris team often talked about forgiving student loans. So, does that mean you should right now consider taking out a huge college loan – maybe for a school you thought you could never afford — in the hope that someday the government may grant forgiveness?

NO! That is not a good idea at all.

Frankly, taking on a more expensive education in the hopes that the debt associated with that education may someday be forgiven, makes little or no sense. It’s way too early to know what student loan forgiveness might look like, even if a Biden administration could pull it off at all. What you really need to do is consider if any kind of student loan at all, is the best way to pay for college. And, even if you decide that student loans are right for you or your kids, it is never, ever a good idea to incur any more than the least amount of debt as possible.

Things to Consider Before Taking a Student Loan

Do not wonder about the longshot of student loan forgiveness. Instead, evaluate what a student loan may actually mean. Also consider what it will take to pay it back. Many students and families who take a “we’ll figure it out later” approach find themselves with crippling student loan debt.

One of the main things you need to consider is your student’s field of study. This relates to his or her ability to earn a living. If the average person in a given career cannot earn enough money to pay back the student loans associated with entering that particular field, it might be time to reconsider your career choices or loan amounts.

Parents need to do the math now. They should focus their full attention on helping their child choose the most cost-efficient school they can. Then ensure that he or she is 100% committed to earning their degree. The cost of paying back a student loan without finishing a degree can be devastating!

You should know exactly how much money your child will owe each month. Compare this to their earning potential once they obtain their degree. This is the only way to make a good decision about taking out a student loan. Do not pin your hopes on whether or not the government enacts some kind of student loan forgiveness program.

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