Student loans represent one of the premier ways that a person can achieve higher economic and social mobility within our society. For children of low-income families, higher education is one of the best options they have available for moving up the income ladder. Whereas children of wealthy families tend to continue being wealthy whether they go to college or not, and are likely to have more options available to them for success. Without student loans, I would not be writing this article. Like most people my parents struggled just to provide the basics, the idea of funding a college education wasn’t even a consideration. To give you some perspective, the school I attended the University of Southern California (USC) had estimated costs for tuition and fees of around fifty thousand dollars a year. At that time, my dad was making twenty-five thousand dollars a year and had five kids and a wife to support. He would have had to save everything he made for two years to pay one year of my education.
With a combination of student loans, grants, and scholarships I was able to complete a total of fifteen years of education on my way to three masters and a doctorate. Thanks to the education I received I have had years where I have made over five hundred thousand dollars a year, not to mention the appreciation of the assets I have accumulated over the years. The money that I received in the form of grants and scholarships has long been repaid multiple times over with all the donations and taxes my income generates. The benefits to society as a whole are also substantial as I have served thousands of sick people over the years as an occupational therapist and a naturopathic doctor. The people I have had the opportunity to help are mostly having increased productivity in their lives as a result of improved health and decreased physical dysfunction as a result of my care. I am directly causing them to be more productive and generate more wealth for themselves and their communities. The fundamental needs of a society to continue creating wealth are good healthcare and education.
Although student loan debt can seem overwhelming, student loans are a vital tool and an excellent investment for the student and society. Student loans are considered good debt because they are typically low interest, subsidized by the government over long periods, and they multiply the amount of money you can earn over your lifetime. There are also a variety of ways to help you deal with student loan debt in the form of loan forgiveness, tax deductions, and deferred payments when you need it. Banks and lenders are friendlier towards student loan debt because of the increased earning potential that usually comes with a degree. Once you get out of school, your goal should be to grow your income as much as you can so that you can expense the investment you made in your education.,
Student loan debt is a solid investment and a good liability, that can produce a lot of income over a lifetime. New college graduates worry about how much debt they have; To them, I would say not to focus on that number. It’s almost like owning several million dollars in real estate debt. If you think about the total amount, then you are going to get stressed out. But at the end of the day, all that matters is cash flow are you making more money than you are paying out? If that is the case, then your real estate ventures are successful. You definitely, want to try to reduce your liabilities as much as you can as a way to increase your cash flow. But without the initial investment in the real estate, you would have no cash flow. So for those that are worried about student loans, don't! As long as you are investing in a field of study that you know can produce an income.
When you go to school, it is vital that you do some market research on the US labor department's website. And choose a field of study that you see has lots of demand. Another thing to keep in mind these days is whether or not a robot can replace your field of education over the next decade. You don’t want to make a significant investment and then have your field of study to be phased out and replaced by a robot. You need to be proactive. If you have your heart set on an area of education and the demand for that field is limited then make that field of study your hobby or a minor in college. Study in fields that are in high demand such as STEM; science, technology, engineering, and math. These are particular areas of study that are in need in our specific economy. Because they are less challenging, social sciences and business are the areas that are most saturated and the most competitive to find work. Whatever country you live in doing some market research and figure out what is in need and that is what you should invest in as long as you do some research you won’t have to worry about student debt.
Seventy percent of people who have student loans, do not work in their field of study. That would make some believe that starting or investing in a college degree is not worth the investment. The fact is that the more time you spend studying, the broader your mind is, and the more you can grasp different concepts and critically problem solve issues. With this in mind, it’s not unusual for people to study something and end up working in a different field of study. Which is not a tribute to the failure of higher education, but rather a reminder that studying gives you increased opportunities and the ability to work in something else if you find a better opportunity. Do you imagine that a mechanic would have this flexibility, probably not? The more flexible you are, the more opportunities will open up for you, and having a college degree gives you that flexibility.
College graduates tend to make at least twice as much as someone with a high school diploma. Women are twice as likely to attend college and twice as likely to graduate than men. Although you may not remember everything you studied in school, the experience helps you develop a unique set of problem-solving abilities that allow you to quickly resolve problems by knowing where to look for the solutions much faster than someone who does not have a college education. When someone mentions that they may not be working in their field of study and that they may have wasted their money on an area of study they are not practicing. Remind them that education gave them the tools to be successful in the world as a whole. The key is to remain flexible and open to opportunities as they present themselves. Be willing to try new things, develop new skills sets, and live a life that you may not have anticipated. The more you can execute these three things the more successful you are going to be in life, regardless of the amount of student loan debt you owe.
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