Tackling student loans: How to keep ‘good debt’ from becoming a burden
Staying on top of your student loan debt can improve your credit score and leave you with more money to save for retirement, and other life expenses. To put it simply, as long as you prioritise your monthly repayment every month, you should have a higher score.
Money borrowed for your education is considered 'good debt’ because it is an investment in your future. But too much of even 'good debt’ is bad.
Managing student loans can be made easier.
You can:
- Consolidate your student loan debt by streamlining your payments into one monthly bill.
- Repay student loans automatically through your bank account or salary deduction. You would not have to worry about late or missed payments.
Is university or college still a good bet?
Rising tuition costs may leave you wondering whether higher education is still a worthy investment, whether for yourself or your child.
According to Lord David Willets, a visiting professor at King’s College London, “It is important to note that it is a university education that will help individuals thrive in the Industry 4.0 era.”
He added, “Mark Zuckerberg’s Facebook was a Harvard project when he was at the university. Steve Jobs did a calligraphy course at Reed College, which probably led to the creation of the beautiful Apple products. Sir Jony Ives, Apple’s chief design officer, was at Northumbria, where he studied industrial design. That’s where he got the training to make beautiful Apple products. The success of these personalities is linked to them being among the numbers of people benefiting from going to a university.”
So while a formal education is more expensive than it used to be, it's still a terrific investment in your (or your child’s) future.
