We need to have a conversation about student loan debt.
What does the future hold for student loan debt?
In October my niece will turn 8 years old.
In February my nephew will turn 4.
Like most great aunts, I’ve been researching pros and cons of custodial accounts, investment accounts, and 529 college savings plans for them.
In 2028 when my niece is 18, it will cost $31,747 per year to attend a 4-year public (in-state) university. In four years, this will total $134,812 dollars.
In 2033 when my nephew is 18, it will cost $38,625 per year to attend a 4-year public (in-state) university. In four years, this will total $164,019 dollars.
According to Debt.org the cost of tuition at public universities has risen more than 344% since 1980. Tuition at private colleges has increased by 241% since that time.
For comparison, the costs of food and electricity have risen about 150% and gas prices have increased by 200% in the same time period.
On average, 70% of students graduating in 2017 finish college with approximately $38,000 in student loan debt.
Continue reading “What does the future hold for student loan debt?”
Know all the risks, first.
I only see my brother twice a year if I’m lucky, but he’s one of the most important people in my life.
I taught him how to read.
He introduced me to Agatha Christie and anime.
When I turned 30, he flew more than 1,200 miles to celebrate with me.
When it took him longer than expected, I encouraged him to finish college.
We’ve traveled to more than 5 different cities together.
A few years ago, he even changed his hairstyle to match mine!
I’m just kidding.
That would be weird. Continue reading “5 Reasons Not to Cosign on a Loan”
It depends, but do you have a better option?
What’s the best way to eliminate credit card debt?
I recently used Lending Club to secure a small personal loan to pay off some debt. I purposely made this decision because the interest rate I received (10.99%) was significantly less than the interest rate of my original debt (24.74%).
Although the decision was intentional, I admit I could have done more research upfront to compare rates, review lenders, and confirm there was no other, more viable, option.
No regrets. Continue reading “Should You Use Personal Loans To Pay Off Credit Card Debt?”