College Loans 101
Leverage the Power of an Educational Loan
Let’s face it, there are quite a few four-letter words we commonly associate with the college-going experience—dorm, toga, grad…debt.
This word might not conjure up thoughts or memories of short-sheeting your roommate’s bed, rockin’ a Roman laurel on a Friday night or proudly moving that tassel from right to left as you walk across the stage, but debt could very well be the most powerful word in the bunch.
Why? Well, student/parent loans create opportunity and it’s an investment in the student that will grow in value well into the future. Believe it or not, debt is categorized in a couple of different ways. Taking out an auto loan or charging to credit and store cards is considered bad debt. While school loans, mortgages and real estate loans are perfect examples of good debt—all appreciating over time.
Typically, student/parent loans have very low interest rates compared to other types of debt and the interest on student loans, specifically, is tax deductible. You can’t say that about that new Corvette you’re itching to test drive!
Realistically, most students and families will have to discuss finances before choosing a college or university. After all the applications, tours and interviews, it boils down to, “Can we afford it?” With the right combination of financial aid and investing in this experience with “good debt” (leveraging the power of loans), a student’s first-choice college can certainly be well within reach.
Learn about and compare different loan options or contact the Financial Aid office by calling 512.863.1259.
The Southwestern Difference: According to Southwestern’s Post-Graduate Survey (PDF), 92.4% of the class of 2013 are employed or in graduate/professional school.