debtconsolidationconnection.com
501 (c)(3) non-profit Organization
Free Consultation
Consider future income when contemplating student loans
By Sam Craine on Mar 15th, 2010
One way to ensure better financial standing is through an education, which can lead to better job prospects.
However, furthering an education can be an expensive prospect, especially with people having a harder time coming up with money. As a result, young people and their parents may think that student loans are the answer for funding college.
But how much student debt is too much? In a recent column for MoneyWatch, Ray Martin noted that the total amount of debt a person accrues for the education should not exceed the average amount they expect to earn annually during the first 10 years of their working life.
"Keeping college loan debt within this limit ensures a reasonably affordable payment and payoff within ten years," Martin wrote.
Though that advice may work for people who are planning to go to college, others who have already been through the experienced and amassed debt may wonder what they can do.
One option may be debt consolidation, which could lead to lower interest rates paid on student loans. However, people should keep in mind that privately originated student loans need to be consolidated separately from those originated with the government.
More Debt Consolidation News
