Student loans have become a necessary evil as an investment in the future. Once upon a time a four-year degree was a path to a secure financial future…but with the ever-rising cost of higher education, many student hopefuls will need to take out substantial loans in order to pay for their college or university. Tuition has increased over 500 percent in the last 60 years, with no sign of slowing down. The average student takes out nearly $25,000 in order to matriculate. With compound interest, you could end up paying double the original loan by the time you’ve paid it down. And with the current unstable economy, many graduating students find themselves faced with paying back their student loans without having a job offer in sight.
Whereas student loans were once considered “good” debt, the reality is that it is no different from any other financial burden. In fact, declaring bankruptcy will not ameliorate the debt, unlike other types of debt. It pays to educate yourself on student loans before borrowing, so that you can make the best decision. Find out more on how the cost of higher education has changed over the years, and what that means for you in terms of student loan debt with this detailed infographic.