The Financial Implications Of Large Student Loans Essay

723 Words Apr 15th, 2016 3 Pages
A financially secure future is something most people think about. A college education can be one way to achieve financial success, but for many prospective students the thought of being buried in student loans can be frightening. Deciding how much debt is too much, what major to pursue, and if an education is going to be worth it can be difficult questions to answer. However, the financial implications of large student loans do not diminish the value of an education over the lifetime of a student if careful consideration is given to minimizing debt and the choice of major.
A higher education adds value by having a significant positive impact on the on the future earnings of a student. Being financially successful is a goal in most people’s lives, and Oreopoulos and Uros both agree that a college education results in higher wages across all major occupations. College graduates earn an average of thirty-nine to forty-five percent more than non-graduates, and with experience, the income can be as much as ninety-three percent higher (Carroll and Higgins). Over a lifetime, this increase in income outweighs the inconvenience of student loans after graduation. According to Elliot, “Student loans are a down payment on the American dream, a necessary price to pay for access to promising employment opportunities.” A student loan is a short-term inconvenience compared to a lifetime of greater opportunity and future stability. Elliot goes on to say, the evidence is clear that college…

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