We know the cost of higher education is going up, and lately going up two to three times faster than inflation. I'm not sure whether that extra money is for better facilities, better food, higher professor salaries or fumigation for rooms like some of my dorm-mates in college, but the high cost means a lot of students are graduating with huge debts they didn't plan on having.
Here's the story of one recent medical school graduate with $555,000 of debt! Her story is extreme, but we can learn a few things from it:
1) Save early, if possible, for school--529 college savings plans make it even easier and more advantageous.
2) Read the fine print on the loan documents you sign, especially if you're co-signing for someone.
3) If you need a deferral of payment, try negotiating this with the lender and using their procedures, or you may double your debt like the unfortunate doctor above.
4) Find ways to spend (and borrow) less, like a less expensive school.
5) See an attorney about negotiating the debt--there are options, but they're limited, and the possibility of discharging through bankruptcy is very limited.
No comments:
Post a Comment