Friday, November 25, 2011

Student Loans Without A Cosigner: There Are Options Available

It is often thought that a student can kiss goodbye to any chance of a loan if they have no-one to act as a cosigner in the application. But this is not actually true. Millions of students manage to secure approval on student loans without a cosigner, and to finance another year or semester on campus.

What is true is that the amount available through cosigner-free student loans is limited - usually not more than $15,000. But this is at least a figure that can greatly ease the financial pressure they find themselves under.

What is important to consider, however, is that in order to get loan approval for students with bad credit, but without the benefit of a cosigner, some compromises may have to be made, not least in the form of higher interest rates.

Why a Cosigner is Preferred

It might seem strange that getting student loans without a cosigner should make such a big difference, but there are real reasons why cosigners are preferred by lenders. A cosigner included in a loan application guarantees that the monthly loan repayments will be made, even if the borrower is unable to make the repayment.

In essence, a cosigner can be considered human collateral, in that they provide the kind of security that lenders love to have. So, in the case of cosigner-free student loans, some serious issues will be more readily examined by lenders before giving approval.

However, it is essential that a cosigner meets the expected high standards before any hope of loan approval for students with bad credit can be harbored. The cosigner must have an excellent credit history and a large enough income to cover the repayments if it ever becomes necessary.

What to Expect

It is unrealistic to believe that any student loan without a cosigner required is going to be large enough to deal with all of the expenses incurred by being in college. Between tuition fees and living expenses, the cost of college is typically in the tens of thousands of dollars each year. In fact, fees alone can be as much as $50,000 per year, though that does depend on the college.

A cosigner-free student loan, however, is likely to start at around $2,000 and extend no further than $15,000. That kind of range is usually enough to handle living expenses, like rent, food and utility bills. It might also be enough to meet tuition fees but is unlikely to cover any more than part fees.

Crucially, however, without any cosigner to guarantee the loan, the interest rates will be higher so monthly repayments will be bigger. In order to get loan approval for students with bad credit, it is therefore necessary to choose a lender very carefully.

Ideal Lenders are Online

Thankfully, the task of finding a suitable lender is made all the easier by the internet. Generally speaking, student loans without a cosigner will be expensive. Online lenders, however, are known to offer lower rates of interest, and better terms.

In fact, cosigner-free student loans are common because many loans require no credit check. So a low credit score has no influence on an application. The repayment schedule is also a matter of negotiation, and often loan approval for students with bad credit comes with a delayed schedule. This means that repayments are not expected to begin until after graduation.

Wednesday, November 23, 2011

The Student Loan Vs Full-Time Job - Which Is Best For Me?

Going to college can help you choose a career path and increase your earning potential over the long-term. While attending college is important for the average person, the cost of classes can be prohibitive. If you don't have thousands of dollars sitting around pay for college, you may have to choose between getting a full-time job or taking out a college loan to pay for your education. When choosing between these two options, there are a few factors for you to consider.

How Long Do You Want it to Take?

One of the most important factors for you to consider is how long you want your education to last. If you plan on working a full-time job while you are taking classes, it will most likely take several more years to get your education done. Most people who work a full-time job are not able to take a full load of college courses and get all of their homework done at the same time. Because of this, they have to go to college on a part-time basis until their degree is reached.

By comparison, when you use a college loan, you can borrow enough money to pay for your entire education in a condensed period of time. This allows you to focus all of your energy and attention on your degree instead of on working. This essentially allows you to speed up the process of getting your education.

Can You Handle Debt?

Another factor to consider when making this decision is how much debt you can handle when you get out*of college. Some people are against the idea of having a large amount of debt after they get out of college. You'll have to make regular student loan payments every month for many years to pay off your debt, in most cases. If you use student loans, you may end up with anywhere from $20,000 to $200,000 of debt, depending on where you go to school. If you plan on going to graduate school or medical school afterwards, you will have even more debt to deal with.

If you decide to work your way through college with a full-time job, you can avoid some of this debt. While it may take you a little bit more time to complete your college education, you will not have to worry about the debt comes with student loans. Then when you get out of college and start working in your chosen career path, you will be able to use all of the money that you receive from your paycheck. You won't have to worry about taking a chunk out of your paycheck to make your student loan payments.

Tax Benefits

Although most people don't like the idea of having to pay off student loans, they can actually help out at tax time. When you make student loan payments, the interest that you pay is tax-deductible, regardless of whether you itemize your deductions. This means that you'll be able to lower your tax liability for the year when you start paying off your student loans.

Tuesday, November 22, 2011

Don’t Let the Season Carry You Away! Survey Reveals U.S. Consumers are Trimming Holiday Spending Credit Experts Share Shoppers’ Insights and Offer Easy Tips to Avoid Overspending: “While clipping coupons and bargain hunting are effective ways to pinch pennies, now more than ever, consumers need to plan for long-term savings,” said Lucy Duni, vice president of consumer education at by TransUnion. “During the holidays, it’s important for consumers to take a holistic approach to their spending, to ensure they don’t rack up debt that will impact their credit long after the holidays are over.”

The experts at compiled a list of helpful tips and insights to help consumers navigate the holiday shopping landscape:

Wallet Makeover: Surprisingly, the survey found 55 percent of people say they do *not* feel they’re more at risk of ID theft during the holiday shopping season. As more shoppers hit the stores, so do identity thieves, so it’s important for consumers to protect themselves. To reduce your risk, do not carry extra credit cards, your Social Security card, birth certificate or passport with you unless needed.

Check it Twice: Before you shop this holiday season, check your credit report to get an up-to-date view on your balances and to ensure everything is accurate. After the holidays, check your report again to make sure there isn’t any fraudulent activity on your report.
Trim the Tree: Talk to your friends and family about scaling back on extravagant gifts to ensure the holiday season is more economical for everyone. Try making a list of people you plan to buy gifts for and set a spending limit for each one.

Buyer Beware: According to the survey, more than half of Americans have between one-to-five retail credit cards, and 2 percent say they have seven or more! Avoid the temptation to sign up for every credit card you are offered while shopping. While the promotion may be enticing, it can also make it easier for you to rack up more debt.

Go Green: Go to the ATM and take out the amount of cash you plan to use for the day. Put it in your wallet. When your wallet is empty, stop shopping.

Eyes on the Prize: Maintain good spending habits and a healthy credit report during the holidays and throughout the year. Budgeting ahead for holiday and other spending extravaganzas can help limit financial stress while also keeping your debt accumulation to a minimum.

Final Tip: If you are lucky enough to get that lovely green stuff for a gift (otherwise known as cash), consider giving yourself a real gift and make an additional payment to your student loan principal. Remember, since interest is "fee simple" the faster you pay your principal down, the less your loan will cost!

To see the full results of’s survey and learn more about credit management, log onto and visit the learning center.

Sunday, November 20, 2011

Reasons Why It's a Good Idea to Pay More Than the Minimum on Student Loans

According to the US Treasury Department, Americans today owe more on their college loans than they owe on their credit cards. Because of this, many people are questioning whether college loans will become as burdensome to American families as credit card debt has. Of course, this means that it is important for anyone with student loan debt to get it paid off as quickly as possible.

Unlike other debt, loan debt cannot be discharged during a bankruptcy. It is also rare to be able to defer loan payments for an extended period of time or have the total amount of debt reduced or forgiven. Furthermore, if a former student goes into default on his or her loans, a loan company is allowed to garnish wages, tax refunds, and Social Security checks in order to get their money back. Therefore, it is critical that people who have student loans do whatever they can to insure that they are paid off quickly.

The best way to get your student loans paid off quicker is to make extra payments towards them every month. While some people may find this difficult to do at first, there are many advantages to making it a financial priority to pay off student loans.

To start, many college loans, especially private loans, have high interest rates. A typical private student loan today will have rates between seven and nine percent. When compared to the average four percent rate on a 30-year mortgage or the average three percent rate on a new car loan, student loan debt is probably among the highest interest rate debt that an American family carries. By paying it off quickly, an individual or family will pay less in interest over their lifetime than an individual or family that chooses to prioritize other debt.

Furthermore, loans are often the first type of debt that a person acquires in their life. By making sure it gets paid on time every month, many people see their credit score improve. Paying the loan off completely will often drastically lower the total amount of credit being used by a person, helping their credit score improve even more.

Paying off school loan debt will also help an individual when they apply for other loans. Having a high remaining balance on prior school loans is one of the main reasons why students get rejected for additional funding. People who are considering getting an advanced degree and/or going back to school should seriously consider lowering their existing student loan balances as much as possible.

Paying of school loans will also improve a person's credit to income ratio. This ratio is often used by banks to determine how much a person qualifies for in the way of new loans. Anyone who is applying for a mortgage or even a car loan is advised to pay as much as possible towards their student loans.

Friday, November 18, 2011

How to Negotiate a Better Rate For Your Student Loans

Many students and their parents believe that student loan rates are not negotiable, but this is not usually the case. Just like mortgages, vehicle loans and other types of consumer loans, student loan rates vary greatly according to lender and they can be negotiated.

Understand Your Options

Most student loans are more flexible than other types of loans. Students can generally choose from a variety of payment schedules and methods as well as grace periods that are only available to students. Some lenders allow students to combine loans from other sources when they are taking out a new loan, while others do not. It is imperative that each student understands the options that are available to them before signing a loan contract.


Students who elect to put off making payments toward their student loan debt while they are taking classes. This practice often leads to very long loan terms and higher interest rates. Even paying the interest on the loan while you are attending classes can save you thousands of dollars over the life of the loan because the interest compounds less frequently than if you were not making any payments toward the debt during this time. This tip is unlikely to get you a lower interest rate on your loans, but it is almost guaranteed to save you money over the life of your student loan.

Increase Lender Confidence

Holding down a part-time job while you are in school allows you to pay some of your living expenses and decreases the amount of money you must borrow to survive. It may even help you get a lower interest rate because lenders have more confidence in students who are ambitious enough to work while they attend classes. This confidence often results in a lower interest rate.

Many students who are getting ready to attend college do not have assets or income to assure the lender that the loans they take out will be repaid. Using collateral such as a vehicle against a student loan debt is a good way to get a lower interest rate because the lender will feel more secure about lending you money, even if the value of the vehicle is considerably less than the amount of the loan.

Future Income

Lenders who believe that a student has a high chance of making a large income after they graduate are likely to offer lower interest rates. Students who are going through the loan process should think carefully about the degree they are pursuing and the employment options that are likely to be available after graduation. The lender will have questions about your goals when you meet with them, so it is essential that you have clear goals in mind and are prepared to answer their questions. Having information about salary and employment options in your field with you at your appointment will show the lender that you are prepared and organized. They will likely see you as a low-risk borrower and offer you a lower interest rate than they would have if you did not come prepared with this information.

Wednesday, November 16, 2011

3 Tips for Overcoming Student Loan Debt

Student Loan Statistics

Up to 60 percent of undergraduates take out student loans to help finance their education, and they have an average debt of $23,000. The numbers of borrowers and the average amount borrowed increases with graduate degrees.

Many new graduates are unable to pay their loans when they graduate. This happens for many reasons. First, many students don't realize how much they will need to pay back each month once they graduate. In addition, some students overestimate how much money they will make once they graduate, or they overestimate their chances of finding a job in their chosen field. Up to 28 percent of students have reported that they have a great deal of difficulty paying back their loans. However, there are some strategies that a student can take to overcome their school loan debt.

Choose a Repayment Plan that Works for You

Many new graduates don't realize that they have options when they set up their college loan repayment plan. There are four general types of repayment plans to choose from:

1. Standard Repayment Plan - This plan is usually the first one offered by the lender. The terms of this plan include making regular, fixed payments for 10 years.

2. Graduated Repayment Plan - This plan allows the borrower to make lower payments to begin with, and then increases the amounts of the payments.

3. Extended Repayment Plan - This extended plan stretches out the payments for up to 30 years.

4. Income-Contingent Repayment Plan - This plan adjusts the amount of the payments to make them manageable for your income level.

Investigate Loan Forgiveness Programs

New graduates working in some fields may have the option to have some of their school loans forgiven. For example, public school teachers working in disadvantages school districts can have their loans forgiven after they make payments for 10 years. These programs have expanded since 2010, allowing more people to take advantage of them.

If you aren't eligible for a student loan forgiveness program, volunteering may reduce your student loan debt. For example, participating in some volunteer programs, such as the Peace Corps or AmeriCorps, can cut thousands of dollars off your student loan debt when you agree to volunteer for a specific time period. These programs aren't for everyone because most of them represent a significant time commitment that will probably prevent you from working a regular job. However, if this volunteer experience will improve your job skills or your chances of finding employment, you may benefit from the experience as well as the loan forgiveness.

Pay as Much as Possible

If you are making payments on your student loans, pay as much as you can afford. Making more than the minimum required payment can significantly reduce your principle over time. When you make a payment, the late fees are paid first, then the interest that you owe, and finally, the rest of the money goes toward the principle. When you may more than the minimum amount on the loan, the amount that you pay over the minimum is directly applied to the principle. If you do this each month, you will reduce your principle much more quickly than you would if yot only made the minimum payments.

Tuesday, November 15, 2011

The Time of Worriment Has Gone With the Invention of Grants for College

Everybody can apply for the grants' facility, if they genuinely need them. Nobody can deny the fact that seeking grants takes time and patience. It is very essential to be patient and determined, as this is the first step in achieving success. But, it is not necessary that every individual can acquire every grant. You need to qualify for every grant, in particular. So, there is a probability of winning some, and losing some. It also varies according to the state's rules and regulations.

Government college loans are very easy to obtain, and individuals can easily qualify, if they successfully prove their financial hardships and educational requirements. It is not necessary to repay the loan, unless and until you graduate and achieve a nice job. However, these are the benefits of college loans; but grants for college, and scholarships are entirely different from such kinds of loans, as you need not repay the grants. Hence, single moms should always choose grants for college, if they genuinely feel that they are willing to learn further for attaining a highly paid job that will be of great assistance in running the home.

Another option is the federal grants, called as 'PELL grant' that are usually allotted to those students who couldn't complete their basic education, and are in extreme need of financial reinforcement. Furthermore, institutions coming under the federal grant programs make payments directly to the school, student or to both, school and student. Moreover, the financial necessities of the students are assessed by Education Department of the pertaining state for determining the eligibility level, mainly on the basis of EFC of family, prior to sanctioning grants. This is important, as the grants for college are provided to only those students having a household income below USD 30,000. However, this fact doesn't deprive a student of grants; hence, look out the specific rules and regulations of the state you stay in, pertaining to the college grants. This is because single mother always has some or the other privileges, taking into account, the financial hardships faced in raising a child alone.

Thus, there is no stop to single mom's education. She can achieve success by continuing her education through the help of college grants. This will give her an opportunity to earn well, so that her kids have a secured future ahead. The time of worriment has gone with the invention of grants for college for single mothers.

Thursday, November 10, 2011

Where to Find Easy Scholarships to Apply For

Easy scholarships are great ways to earn quick and fast money for school. They don't require too much effort and can oftentimes either substantially decrease or help payoff the amount you owe in student loans. The tricky part is finding these ever-so elusive programs. They can come in the form of sweepstakes in which case all you need to do is register and wait to be notified. Also, if not big on writing, no essay scholarships that substitute one activity (writing essays) for another like creating a video, photography, community service projects or anything else are easy to those who are passionate about things other than literature. Scholarships that speak to your interests and allow you to do what you love while being able to receive a financial reward are extremely valuable and worth the search.

Typically, companies that provide easy scholarships do so as a way to gain attraction to their product or service. A college-based company offering a sweepstake scholarship is a great motivator since everyone loves free money, so students will surely flock. Also, major companies will often give back to the community through grants and scholarships that not only benefit students, but increase interest in their brand from average consumers which, of course, benefits them. They'll likely lower the standards for financial need scholarships so that those who often get passed over will get the help they need. Nevertheless, easy scholarships make an attractive marketing tool and a good way to connect with the people.

Below are a few notable scholarships that fit the description above:

    * Walmart Associate Scholarship - The ubiquitous grocery store chain offers easy scholarships for employees and their dependents. All that's required is that you've worked at a Walmart location for at least six months and have maintained a 2.0 GPA. Depending on which type of institution you enroll, community or 4-year college, will determine how much you receive in aid.
    * KFC Colonel's Scholars Program - Grab a bucket of original recipe and win a scholarship to help pay for school from this scholarship. If you hold a 2.7 GPA then you're eligible of receiving $5,000 per academic year for four years from the KFC Scholars Program. This is a very generous program and shouldn't be passed over. They desire students who have the entrepreneurial spirit, are in financial need and who have great potential to succeed in the professional world.

These scholarships are for those who simply can't afford to pay the rising costs of tuition, but there are other scholarships that have little to no eligibility requirements whatsoever. Here are a few below:

    * Sweepstakes - This scholarships awards $1,000 to two students who have created an account on the website and registered for the scholarship. The winner of this contest is selected by random drawing and will be notified by email if they've won. This site offers great tools to enhance your college searching process with virtual tours, helpful articles and tips for applying to college.
    * Wells Fargo CollegeSTEPS Scholarship - This is another random drawing scholarship, i.e. scholarship sweepstakes, that gives students the ability to lower the cost of tuition by $1,000. Scholarship contests like these often gain a huge crowd which decreases the odds of winning but are definitely worth a try. Yet, with so many sweepstake scholarships available, applying to more than just one will give you better luck.

Tuesday, November 8, 2011

Qualifications You Need in Order to Be Awarded a Federal Grant For College

The option to further one's education is far greater today than ever before. There are good programs set up to help students and their families, which almost anyone can qualify for. Those who qualify for any assistance will be a U.S. citizen, not owe for any previous federal loans, and be enrolled in an eligible program. There are three major types of financial assistance available: governmental grants, student loans, and scholarships.

Getting Started With FAFSA
Before any of these can be applied for, a student must fill out a Free Application for Student Financial Aid (FAFSA). The application is found on the FAFSA website online and will be used to determine eligibility.

Anyone under the age of 24 will be considered a dependent. Those over 24 will be independent. Dependent students will need their parent's financial information, as it will be used to determine eligibility for federal grant money. Independents will not need to provide parental documentation as the outcome is based on their own income. Any free money available will be applied to a student's account before any other type of financial aid can be awarded. Below are the three main programs for financial assistance:

Government Grants
Grants are means tested, or needs based. This means that qualification for them is based on a students income and other factors that may demonstrate the need for help. The most common grant available is the Pell Grant.

Pell grants are free money. They are most commonly provided for parents and adults who otherwise could not afford to attend a school. Pell or any other types of grants do not need to be paid back by the student. Once funds are released to the school, it will be applied first to tuition. The remaining balance is generally refunded to the student for help with buying books and other supplies.

Student Loans
Student loans are cash loans from the federal or state government, private companies or banks which are applied after any grants that were available to cover tuition and school costs. Loans are not means tested, or needs based, allowing anybody to borrow up to a set amount of money. The amount of the loan is determined by the educational program and can be used for living expenses.

Students do not need to qualify for grants to apply for loans, but having federal grants will not affect the ability to borrow money. Loans can help with transportation, food, and other living costs. Students typically have to start paying on their loans six months after they graduate or leave the program.

Scholarships are the last stop when looking for funding. All scholarships are different as far as their qualifications and guidelines go. Generally, there are only limited amounts of money the scholarship foundations can give out in any given year. So it is a good idea to apply to them as soon as possible. Many, but not all, will be largely based on a minimum G.P.A., area of study or major and financial need from the student. Information can be found through the school or on the website.

FAFSA Application
Once the FAFSA application is filled out and submitted online, it will be sent to the school or schools indicated on the student's application. Afterwards, the student will be notified by the federal government directly giving an estimate of how much aid the student qualifies for.

The total may be different from the amount awarded by the institution as they are the ones who determine what they can give. They try to fund as many students as possible.

The amount of aid can also go up each year as long as the student continues to meet requirements and repeats the process of filing their FAFSA each year.

Friday, November 4, 2011

Are Student Loans Postponing Marriage?

As our college graduates become increasingly more encumbered by their student loan debt, an unlikely victim is emerging: marriage. Becoming bound to one another through the sacred union of marriage is being put off by many in order to spend time paying down their student loan debt. As a result, the average age for marriage is increasing, and new generations are being destined to grow up with older parents.

While the implications of this "older" family are not yet known, little guesswork needs to be done to predict what a few of those problems may be.

The Average Age for Marriage

According to IHS Global Insight, the median age for marriage in 2007 was 27.5 years old for males and 25.6 years old for females. However, the same research firm found those ages increased to 28.7 and 26.5 respectively in 2011.

While those numbers show roughly a year increase for both sexes, the fact that such an increase occurred over a mere four years is what's truly astonishing. Furthermore, that dramatic increase took place during an economic downturn and during a time when college students were graduating with record-breaking student loans.

As our current students and recent graduates contemplate how they will repay their college debt while unemployed or underemployed, the question they're asking isn't, "Will you marry me?" but instead it's, "Can we get married after I pay off my student loans?"

The Risks of an Older Marriage

But the choice to postpone marriage in order to satisfy student loan debt isn't unwise. When financial problems rank number one in the top 10 reasons marriages fail, our educated youth are making prudent decisions to put marriage off. However, such decisions do not come without risks.

One of the largest risks associated with marrying at a later age is related to beginning a family later in life.

The Center for Bioethics at the University of Pennsylvania revealed that fertility rates drop significantly after women turn the age of 35. Additionally, women over 40 subject themselves to double the risk for miscarriage during the first trimester of pregnancy when compared to pregnant women of 35 or younger.

When student loans postpone the creation of families, it's not difficult to see how they may possibly contribute to future pregnancy complications in our college-educated youth of today.

Furthermore, having children later in life also leads to the inevitable outcome of kids being raised by older adults. Having a baby at 40 years old means parents will be legally responsible for their children until both parents are nearly of retirement age. When past generations welcomed grandchildren into the world around their retirement, our nation's future parents may still be raising children of their own.

Our college-educated youth are facing obstacles unlike any experienced by past generations: they are being told they must go to college for a career, they're entering their 20's with unprecedented debt, and now they're starting their families later on in life. Student loan debt is sinking its teeth into facets far away from the lending world, with the institution of marriage and the concept of the family being perfect examples of that.

Wednesday, November 2, 2011

The Real Student Loan Debt Problem

An Article recently published by the International Business Times explored the potential for problems associated with aggregate student loan debt. Since the total student loan debt outstanding exceeds $1 Trillion dollars, the scope of the problem seems immense. When complicated by the 30% of student loans that are 30 or more days overdue, there appears to be a crisis brewing.

The concern expressed by many is that the burden of student loan debt will suppress people's future disposable income. To many, this presents a dire scenario where future consumption spending cannot keep growing due to the crushing burden of student loans. It is complicated by the high rate of unemployment among recent college graduates, and has led many to believe that government action is required to "fix" the problem.

The Solution that Isn't a Solution

When college students gather in protest rallies, they frequently hold up signs demanding that their student loan debt be forgiven. Since the overwhelming majority of student loans are underwritten by the US government, all that this would accomplish (besides delivering a free ride to people who acted irresponsibly) is to turn $1 Trillion of private debt into $1 Trillion of public debt. This sounds great for people that are either looking for a handout or looking to buy votes by giving away a handout with government money, but it does nothing to solve the underlying problem.

By accelerating the government debt problem, it accelerates the extent to which drastic action must be taken. Many (mistakenly) think that the pile of student loan debt can be dissipated with additional taxes on the wealthy.

Unfortunately, this strategy has two main deficiencies. The first is that there aren't enough wealthy people to pay the taxes. The second is that most wealthy people hire lawyers and accountants to reduce their tax burden with (legal) income sheltering strategies. The ultimate result is that the government is unable to tax away its debt and will need to inflate the currency. Since inflation disproportionately impacts the poor and middle class, it will ultimately end up coming back to bite the people who were holding the signs demanding that the government wipe away their student loans.

The Real Problem

A paper recently published by Georgetown University breaks down the average earnings and unemployment rates for college graduates based on the level of education and course of study. It comes as no surprise that subjects such as education, business, and engineering all have relatively low rates of unemployment associated with them and respectable earnings. However, studies in subjects such as social sciences and the liberal arts have very high rates of unemployment and relatively low earnings.

Thus, the real problem is not that people carry so much student loan debt, but that people have chosen to take out large amounts of debt to finance an education that does not have a significant market value. Another way of stating the situation is that people who study subjects like engineering and business do not have a student loan problem. The reason is because their education prepares them for a career that allows them to generate an income so that their debts can be paid off.

The Real Solution

Understanding the real problem is the first step toward a real solution. The only way for this lingering problem to be solved is for the people who are under all of this debt to become gainfully employed so that they can pay their debt back. However, attaining gainful employment requires that better decisions be made in regard to the course of study that one pursues in their path of higher education. This is the only method of dealing with this problem that will not result in a simple transfer of the burden to somebody else.

The truth is that all choices involve cost. The decision to attend college is frequently very wise. However, it is highly important to choose a course of study that is consistent with your long-term career interests. Studying the arts is fine if you are content with living the life of an artist. However, if you desire to climb the income ladder, then you must acquire skills that will allow you to generate value for an employer that are sufficient to justify a favorable level of compensation.

Student loan debt is not fundamentally different from any other kind of debt. It is not good or bad in and of itself... student loans taken out to acquire skills that allow you to earn a good income to support your family are a very wise decisions. Loans taken out to finance four years of partying a degree that offers no employment prospects are much more suspicious. All debt is fundamentally neutral in nature. It only becomes good or bad when paired with an investment that is good or bad.

Thus, the answer is for more people to make better decisions regarding what they study. In the larger context, the investments of time, money, and education we make are what will define whether any resources we borrow to make those investments were wisely deployed. Instead of demanding that other people bail us out after making bad decisions, we should take the opportunity to make better decisions in the future. Each day is a new chance for us to learn. We should seize those learning opportunities to make each successive day more prosperous than the last.