Can I afford my degree? Is often a question that goes unanswered by students prior to embarking on a field of study financed through student loans. The common result is the student graduating with a degree or diploma that doesn’t generate enough income for repayment of their student loan obligations or worse is the inability to find employment in their field of study.
Just like many other things in life students should not only plan out their field of study and future career path, but consider the repayment requirements of the education being financed. The student should always consider the full cost of financing their education and use a repayment calculator to estimate their monthly repayment obligations. Secondly, the student should research the average compensation ranges for their chosen careers, and further calculate on a monthly after tax basis. Third, the student needs to assemble a monthly and annual cash flow budget following a typical budgeting process that accounts for their costs of living. It should be clear after the third step if the educational path makes financial sense given the repayment obligations compared to the anticipated monthly compensation.
However, sometimes a person’s education that was financed results in a difficult financial situation beyond the student’s management and control.
We hope the information discussed has given you some insight into planning for Student Debt and how it may affect you in the long term. We at Allan Marshall & Associates Inc. are always available free of charge to discuss any matters dealing with your student loans and other debt. Please visit us at www.wecanhelp.ca or don’t hesitate to call us at 1-888-371-8900.