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The problem is that your debt, if measured at the end of your lifetime, will also balloon WAY out of control. Simple example, 30 years after college, 40k usd in
by bfigares 13y ago
The problem is that your debt, if measured at the end of your lifetime, will also balloon WAY out of control. Simple example, 30 years after college, 40k usd in debt gets you to 462k at 8.5% annual. That is, assuming you get a job immediately that truly translates in higher earnings, which a lot of times isn't true.
- muzz 13y agoWell yes you have to pay it back before the end of your lifetime. WSJ had article on student debt recently, with lots of data. Median debt load was 18-19k USD [1] If it were all via Federal Stafford loan, the interest rate would be 3.9%. If the payback period was 10 years, the monthly payment would be a whopping $191 per month. [1] http://online.wsj.com/article/SB10001424127887324432004578306610055834952.html http://online.wsj.com/article/SB1000142412788732443200457830...