Student loan debt less than cost of new car

The average college senior in the U.S. now carries $25,000 in student loan debt at graduation according to Kevin Carey, the director of the Education Policy Program at the New America Foundation. A recent Forbes article reported that the average price for a new car or light truck in April was just over $30,000 according to research from forecaster TrueCar.com. That means that college loan debt is less than a loan for a new car.

Déjà vu. When I was fresh out of high school, eons ago, my dad said if I wanted to go to college I’d have to take out a student loan. “Think of going to college like buying a car. The good news is you get to keep your education and have years to pay it off.”

When it was time for our daughters to go to college my husband and I helped them fill out the financial aid forms. We told them, “Think of going to college like buying a car. The good news is you get to keep your education and have years to pay it off.”

Granted, paying off our all our loans took years (my husband also went to graduate school), but it was our responsibility. No matter what the purpose for borrowing money, a loan is a loan is a loan.

It matters not that today we think college is too expensive or that a loan is a burden for new graduates. If someone lends their money in the form of a loan there will be payments to make.

If today’s college graduate borrows $25,000 to get an education that’s less than the average cost of a new car. If college can get you where you want to go, it’s worth every penny.

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