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How does college debt affect future life choices of students?


Black Friday 2007:
“Dad, we need a new computer! I found a great deal … look!” my daughter called, getting my attention.
It was a brand new iMac priced under $1K.
“It does look like a good deal. Let's get it!”
I paid for the computer with a credit card special Black Friday financing deal.
A few days later the computer arrived home. My kids were happy to use the new computer to work on their homework.
A few weeks went by when one of my kids started to complain, “Dad, the computer is very slow.”
I ignored the comment.
Then my other kid came with the same complaint, “Dad, the new computer is very slow.” I ignored the comment again.
A few weeks later, my wife came up with the same issue, “Something is wrong with the new computer. Please check it.”
I made some time to take a look at it, and yes, the computer was ANNOYINGLY and painfully slow.
I took it to the local Apple Store.
They checked it.
“Nothing is wrong with your computer. It's just an outdated model,” the Apple service dude told me.
My heart sank. I couldn't return the computer anymore.
I was now STUCK with a worthless, outdated computer and still making the monthly payments.
I felt scammed.
A very similar experience is happening to college students worldwide.
Millions of students (and parents) are making huge, life investments in their college education. Many need to tap into student loans. It seems like a good idea UNLESS they're getting an outdated “computer.”
Now, to answer your question, how does college debt affect future life choices of students?
That outdated computer I purchased never paid for itself. I had to buy a new computer and still pay for the outdated one.
There is good debt and bad debt.
Good debt pays for itself.
Bad debt, on the other hand, needs us to work to pay it off. Bad debt traps us. We become slaves of the debt.
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A good “computer” is valuable only if it is an effective source of leverage that makes my work more efficient. Don't ever buy an outdated “computer” with credit — it’s a worthless tool that won't ever pay for itself. Be smart

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