Seriously, where did we go wrong with student loans and higher education? I actually know a few reasons, but if we are just talking student loans – nothing else – the inflation and the price of a college degree is just out of control.
College is expensive, no doubt. I often compare the inflation of college tuition over the last 18 years to imagining if a coke went from $1.00 to $5.00.
The average starting salary for the class of 2018 is $50,000. Once again I emphasize average. Roughly 50% start less than that, while the other 50% start higher.
Hypothetically speaking, an average student goes to VCU as a Virginia resident. They land their first job making $50,000 a year in a suburb of a big city working for a tech group. They get a 3% raise each year.
As you can see in year 1, it is brutal. Over 33% of your take home goes to student loans. In fact, since over 33% of earnings is accounted for in the form of student loans.
If you have student loans just pay them off. Most of my readers are done with college so when I write about student loans I am more so hoping that others will help create a pier dime shift.