Even if you don’t particularly care about college tuition costs, you have probably heard the news that prices have been skyrocketing over the last few years. Now with it being more difficult to get a student loan, it seems that more and more people are facing a challenge paying for college.
In the video below Dave Ramsey reiterates his position against using student loans as a means to pay for college and offers a few tips when saving money for college.
But college is an investment – right?
The thinking that I have always heard is that college is an investment, therefore you can justify taking a student loan. But what I agree with Dave on is that for some reason very few have stopped to ask “at what cost?”
Should it be considered “normal” to leave college with $20,000 or $100,000 in student loans?
Sure, it is a good investment for some people, but for others who can’t find a job in their field and end up moving into an unrelated career, it may not be that good of an investment. With more and more people wondering if a college degree is worth pursuing, the costs increasing, and student loans harder to come by it’s no wonder that some people are looking for jobs that don’t require a degree.
Saving money for college vs. retirement
I will say that I completely agree with Dave about this. His stance has always been to save first for retirement and if you have that covered then work on saving for the kids’ college. The simple point is that (worst case) you can take loans for college expenses at reasonable interest rates. While Visa and Mastercard are the only ones offering “Retirement Loans” at 25%. Thinking about it in those terms makes it pretty easy to decide.
Are you saving up for college expenses on the horizon? Are you planning on taking loans or paying cash?