Are you like the 21 Pilots, stressed out thinking about the possibilities of student loans? People vary in their willingness to get more education because these decisions involve immediate costs in order to obtain future possible benefits. Student loans allow people to go to school or training now and pay in the future, when they have jobs. Student loans are good and bad. On one hand, they allow you to go to school now and pay later. However, on the other hand, you have to pay later! That is why it is essential to plan before you take out a loan. Read this opinion column from the Tampa Bay Times on responsible solutions to repaying student loans. What are some of the recommendations? What do you think? The investment in education and training usually has a good return on investment (ROI), except when you don't plan. You can use the loan calculator tool that helps you figure out how much annual income you will need to make to repay loans without suffering hardship.
SS.8.FL.1.5 Examine the fact that investment in education and training generally has a positive rate of return in terms of the income that people earn over a lifetime, with some education or training having a higher rate of return than others.
SS.912.FL.1.2 Explain that people vary in their willingness to obtain more education or training because these decisions involve incurring immediate costs to obtain possible future benefits. Describe how discounting the future benefits of education and training may lead some people to pass up potentially high rates of return that more education and training may offer.
Deborah Kozdras, Ph.D.