College debt: Stressful but worthwhile
When Grandpa told you that he walked 10 miles to school uphill both ways, in blinding snowstorms, every day for years without uttering even one complaint, he wasn't speaking literally. He could have been describing the task of paying for a college education.
It is, indeed, just as Grandpa said.
College graduates across the United States make twice as much money as those with only a high school diploma, according to the U.S. Census Bureau. These college graduates, however, can incur years of debt to pay for this difference.
Undergraduate students borrow an average of $19,000 throughout their college career, according to a study by the U.S. Education Department. After college, the average student's monthly debt payment is $210. These payments range from 5% to 15% of a recent graduate's monthly income, with the median payment falling around 7%.
Let's look at the actual dollar amounts. Students likely will take home an average of $2,250 a month. That $210 is a big chunk, after rent, car payments, insurance, utilities, groceries and gasoline.
This sounds similar to Grandpa's walk in the snowstorm, doesn't it?
It's even worse for those who have a family to support.
But college graduates will make an average of $2.1 million during their lives, while high school graduates will earn $1.2 million.
What would you do with an extra $900,000? Buy a home, raise a family, drive a nice car and go on vacation every year? Would you take up an expensive hobby? Or just spoil your kids rotten?
I can tell you what I would do. I'd set aside enough money to pay for my children's college education.
The stress caused by high tuition costs, the cost of daycare and family expenses, and the daily hassles of being a college student are weighty burdens to bear.
But it's worth it.
The prestige gained through working at an important job that you love; respect for yourself gained from knowing how hard you have worked to get where you are; and the satisfaction of knowing that the farther you get in life, the better off your children will be, are just a few of the benefits.
Every class you take, every credit you earn, brings you one step closer to where you want to be. There is no other, easier way to get there.