Financial Aid Loans: Yes or No?

Posted by admin on July 6th, 2009

Years ago, when I graduated high school, I never thought twice about the debt I would rack up while attending college. I signed away on forms at the beginning of each semester not really grasping what was going to hit me once I took off that cap and gown. Six months into the real world, I started paying off the nearly $18,000 in debt I had accrued since my freshman year and I was one of the lucky ones! My parents helped pay for my tuition otherwise I would have been sitting on over $30,000 worth of debt. It puts a knot in my stomach to think of when my children are ready to go to college.

Are these loans really the best idea for our children? They’re starting their adult life in debt thousands upon thousands of dollars. Especially in these economic times where jobs are scarce, how can they even be assured a job once they graduate?

Is there a better way? There’s something to be said for schools where you cannot use Financial Aid. The costs are upfront and you know what you’re getting into, financially speaking. And, most of them offer payment options to make the cost a little easier to digest. I think even some 4-year colleges and universities have monthly payment options although I’m not sure how “affordable” they really are.

What are your thoughts/feelings? Would you still choose to defer the debt if you had an affordable option?