Is there “good" debt? I don’t believe so…debt is debt. But, some articles suggest that college loans represent good debt because it is used to further a student’s education.
Parents and students invest time, and lots of money, in higher education to “ensure” future financial success. However, home ownership – a goal for many – has become a financial hurdle due to excessive student load debt taken out years before.
As Apartment List notes, “We estimate that nearly half of millennials have zero down payment savings, and that two-thirds would require more than two decades to save a 20 percent down payment based on their current savings rates.”
Families should make every effort to reduce…or eliminate…college loans by focusing on those schools that fit their budget. It is a prudent decision that will provide positive financial benefits for many years to come.
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