As a young high school student, I had no understanding of what money truly meant. Teachers told us that we could be whatever we wanted, as long worked hard – which in high school (and college) means regurgitating useless information that the teacher thought was important – but nobody explained the price that was to be paid for pursuing a quality education. Unfortunately, nowadays, a Bachelor’s degree simply isn’t enough to even land a job. Other than engineering, in order to land a quality job, most college students have to pursue higher-level education. Now, I knew from high school that I wanted to go to pharmacy school, and I am still feeling anxiety about paying off over 200K in loans after I graduate in 2018. But what about the students who only planned on paying off loans for a Bachelor’s degree? Government funded loans for education are like no other loan. There are really no requirements for a student to get these loans, other than financial need. Now, don’t get me wrong, a student should have the opportunity to pursue any degree they would like – dentistry, medicine, engineering, pharmacy, you name it. Money shouldn’t be a factor. This is the whole point of financial assistance by the government. But students, like myself, who choose to pursue these graduate level degrees, are virtually getting penalized for pursuing these degrees. The first 5-10 years of their careers are used to pay off these loans, leaving them with an extra amount of years needed to work to make up for the early years in their careers consisting of repaying their loans.
Student loans are one of the main reasons I am trying to reach financial independence as quickly as possible. Another scam that comes along with student loans is the fact that they are not tax deductible. This is another reason how students who pursue graduate (or Bachelor’s) level degrees are not rewarded for trying to fill the high educational gaps that exist in our country. Now, I have learned that investments are the key to allowing me to reach financial independence, and most people who read this blog will agree with that. I hope to retire as soon as possible and live off of passive income. My plan is to continue to invest the money that I have, and make minimum payments on my loans as time passes. If I have the financial ability to repay my loans at a quicker rate, I will. But, not everyone thinks like that. And most people who end up becoming doctors, engineers, or any other grueling job that requires a dense background in upper college level coursework, don’t plan on retiring as quickly as possible. But they will suffer the unfortunate consequences set by the government – high interest, long re-payments, and the inability to invest in a home until feeling financially comfortable.
What do you guys think about college loans? Any strategies that you have in order to pay off your loans and reach financial independence? Let me know in the comments!