**Disclosure: This is a collaborative post. Links may be affiliate**Pexels - CC0 License
Figuring out when you should borrow money to get an education is something that a lot of people find challenging to work out. While it can be tempting to go along with the crowd and follow the path that everyone else walks along, it isn’t always the right choice for you. Ideally, you want to be conscious about it, figuring out if it is a good decision or if your time could be better spent elsewhere.
So, when should you borrow money to get an education?
You Don’t Have Other Funding Options
If you don’t have other funding options, that can be a reason to borrow money. However, you should look into every inexpensive service you can first.
For example, companies like Ascent Funding believe in looking for education-specific products. These often have special rules that allow you to pay less or delay payments until the future, once you start earning.
You Will Get Strong Career Support
Another situation where it makes sense to borrow money to learn is when the institution you’re going to is offering strong career support. Everyone there has the objective to ensure that you find reasonable work once you leave (even if it isn’t exactly what you want to start off with).
Many universities offer prestige, but they don’t deliver practical assistance. They don’t help you make progress or do what you need to do to be attractive to employers. Therefore, look for educational establishments with a track record of helping people like you thrive and get the job done.
You Have A Clear Repayment Plan
You could also consider borrowing money for education if you have a clear repayment plan. You want to make sure you can tackle the debts in the future.
The best way to do this is to:
Already have the money set aside (which is tricky when you’re young)
Line up a career that can provide the repayment cash flow you need
When you have a clear repayment plan, that can be a great way to put your mind at ease and ensure that you’re making the most of every penny you spend.
You Are Doing A High-Return Degree
Another reason to borrow is that you’re doing a high-return degree. Yes, it might be expensive, but that doesn’t matter as much if you expect to get the money back in the future (and then some extra on top of that).
High-return degrees are few and far between, but they usually lead to a high-value skill or profession. For example, you might do a medical degree because of the value of being a doctor, or learn software development because the market currently values it at a high level.
Once you get on one of these degrees, stick with it. While they can be expensive, the payoffs are also considerable.
You can make your situation even better if you decide to invest in a short-term, high-value program. So, for instance, if you can get a qualification that will open up the job market in 2 years instead of 4, that option is better.
