It’s back to school season and college loan forgiveness is in the news. If you (or your family members) are thinking about taking on debt for school, take a moment and reconsider. There are goods options for getting an education without encumbering yourself with loans. The growing college debt crisis should be a cautionary tale for how debilitating it can be to start one’s working life in debt. Unfortunately, this current debt forgiveness plan doesn’t address any of the root causes that make education unaffordable for most families, so the crisis is likely to continue.
If you are eligible for the President’s debt relief program, take advantage of it. We think it very unlikely that this loan forgiveness will be repeated in the future. For one thing, it looks like it will cost taxpayers almost $1 trillion – not a paltry amount. This spending will have a serious impact on the deficit and likely push inflation up further if new taxes don’t cover it.
We don’t think future borrowers should expect their debts to be cancelled in the same way. Talk to us about paying for an education before taking out loans. If you consider borrowing, we can help you understand the actual magnitude of the future debt payments and how that will affect your financial picture. Starting out life debt-free is one of the greatest gifts you can give to your future self.