LEARN THE BASICS
JULY 2021
How to overcome or avoid student loan debt
Do you have student loan debt, or are you considering a student loan for yourself or a loved one? If so, getting the facts and using resources available through your Costco benefits can help you make the right decision about something that can affect you for years to come. The average college student graduates with $35,000 in student loan debt, with an average monthly payment of $393, according to EducationData.org.
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What to consider before you take on a student loan:
Good debt? Not so fast — the conventional wisdom that student loan debt is “good debt” is being challenged. Don’t let the allure of a dream school disrupt your financial well-being. Select a school you can afford. If you are unsure about the best path for you, consider starting with a community college or an associate’s degree. Taking this route first can save money while you figure out what’s next.
Do the math — people often don’t anticipate how quickly debt adds up over the years. Then the regret sets in. About one in four of those with a bachelor’s degree have misgivings about taking on student loans. That number jumps to almost one-third of those who’ve earned a master’s degree. Advanced degrees can help students achieve long-term success, but it’s a good idea to explore in-state options over out-of-state if you decide to take this route.
Look down the road — be sure to do the research on earning potential for the career you are interested in pursuing. Set yourself up for success by not burdening yourself with student loan debt that a future salary can’t support.
Already have student loans? There is a student loan resources page on Costcobenefits.com to help you tackle student debt.
Source: Average Student Loan Payment, EducationData.org, 2021.