Thursday, March 12, 2015

Student Loans and the Economy

Welcome to my new blog on keeping college affordable - one family at a time.

A NYT article today echoed what others have speculated: student debt may be stunting economic growth. Suze Orman, Mark Cuban (Shark Tank), and even Fidelity Investments have raised this flag in recent months.

It is painful enough to see Brandon and Haley struggle to pay back their own student loans and also launch a career and adult life. But what happens when our collective debt impacts the whole economy?

As a former HR VP I've had too much experience with the worst case business scenario when the economy fails to grow or tanks: missed revenue goals, hiring freezes, and eventually layoffs...the upshot of which is fewer dollars for parents to fund college and fewer jobs for new grads. The irony is astounding and sad - but not hopeless.

Families who have already over-borrowed have few options other than to just pay. Families who have yet to over-borrow can pause and ask themselves, "What can WE afford for college right now?"

The only time to ensure you don't over borrow is before committing to big loans. The rest is speculation. So speculate carefully.

See you again soon!

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