Are you counting on student loan forgiveness to save you from your education debt? If so, you’re not alone. According to Sallie Mae’s annual How America Pays for College report, nearly half of student loan borrowers are expecting their debt to be forgiven in the future. However, relying solely on loan forgiveness may not be the best financial strategy.
At Extreme Investor Network, we believe in empowering individuals to make informed decisions about their finances. While loan forgiveness programs may offer relief for some borrowers, it’s important to weigh the risks and uncertainties associated with these programs. For example, recent legal challenges have put the Biden administration’s new repayment plan, SAVE, on hold, leaving borrowers in limbo.
Financial experts caution against overborrowing, as it can lead to long-term financial and emotional stress. Borrowing more than you can realistically afford to repay can limit your financial flexibility and impact your ability to achieve other important goals, such as buying a home.
To avoid overborrowing, consider the following tips:
1. Research average starting salaries for your chosen field to determine a reasonable borrowing limit.
2. Calculate the net price of attending a college, factoring in all sources of financial aid.
3. Avoid borrowing more than necessary to cover your education expenses.
At Extreme Investor Network, we encourage families to borrow responsibly and develop a sound financial plan for funding their education. By making informed decisions about student loans and avoiding overborrowing, you can set yourself up for financial success in the future. Stay tuned to our blog for more tips and insights on personal finance and investing.