How to Decide Whether it is Worth Paying for an Education

Image courtesy of Richard Lee
Image courtesy of Richard Lee
In most countries a basic school education can be received free, although there are fee paying schools which you can pick. However, higher education is usually costly, with fees being expensive and then living expenses often needed to found on top. Therefore it can be difficult knowing whether it is worth paying for this or not.

Student Loans
Most university fees are paid for using student loans. These usually have to be paid of once the course is complete and repayments are small. This means that although repayment amounts should not be a source of stress, there will be a lot of repaying to do. It could mean that you will be repaying for decades and the prospect of being in debt for such a long time before even having a full-time job could be very daunting to many people. However, it is worth looking at how much the loan will actually cost. Take a look at the fees and costs and interest and work out exactly how much you will have to repay over the term of the loan. This will allow you to calculate whether you still think the education is good value for money.

A Better Job/Salary
If you get higher education then you should be able to get a graduate job. This will pay better wages and mean that you should be able to make up for the debt by getting a better salary. However, some qualifications are more likely to lead to a high paying job than others. You will need to consider which qualification you are considering going for and whether you think that it will lead to a job that pays you enough to justify the cost of the loan. This is not an easy decision, but you can do some research by looking at current graduate jobs, what areas they are in and how much they pay, in order to see whether you could find a job with the qualification that you are training for. Some courses are rather general and may not lead directly to a job and these are ones that you need to be more cautious about.

Debt for Life
Some people get very worried about being in debt. They feel that debt is all bad and the burden of having debts hanging over them is really big. If you are likely to be stressed like this, then it is wise to not get into debt in the first place. However, it is worth remembering that some debt is good. If you borrow money to invest in education, you could end up making far more money as a result and this will offset the loan many times. However, if the stress of the debt will make you really unhappy, then it is worth considering whether it is better not to borrow the money. Only you know how prone to stress you are and whether this sort of thing will get on top of you.

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Rachel Henderson is a professional freelance writer from the UK. She writes on many subjects but specialises in personal finance. As well as contributing to various blogs and websites she has her own website tracking her own money making process http://www.turnonepoundintoonemillion.com and sells her books through http://www.bowbridgepublishing.com.

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