Pick the wrong school and you could end up chained to student loans for your entire lifetime.
You can’t argue with the fact that, yes, a college degree is most likely a good investment in your future.
The problem is, college degrees and their associated costs are far from standardized.
With so many borrowers still in deferment, it makes you wonder, “How long will it take for many of these borrowers to pay off their loans for good?
” According to the Consumer Financial Protection Bureau, the standard repayment schedule for federal student loans is 120 months, or 10 years.
Most banks only allow a total debt-to-income ratio of around 43%, meaning your monthly payments for all debts combined must equal less than 43% of your gross income.
This is where student loan debt makes things much harder; not only does it chip away at your ability to borrow for a new home purchase, it also eats up funds you could use for a down payment.You don’t get a redo, you can never discharge your loans in bankruptcy, and no matter what life throws at you, you’re stuck.Aside from income-based repayment plans, which may grant complete loan forgiveness after 25 years, and some loan forgiveness programs for federal loans, you have few options aside from consolidating your loans or refinancing them in order to get a better deal.For example, an acquaintance of mine who paid ,000 for a degree in women’s studies.And , my own husband, who earned his first bachelor’s degree in theatre arts.But even then, you will ultimately have to pay them off.