Wednesday, February 17, 2010

Student loan debt can spiral out of control

As education becomes more expensive, it stands to reason that student loan debt would be climbing. We ran across this story today about a female doctor who now has more than a half-million in student loan debt. What many people don't realize is that student loan debt is tough to get out of - bankruptcy won't clear it, and it's not tied to any particular asset that you can sell or give back to the creditor, as you might do if you got in over your head on a house.

In this particular story, the doctor notes that if she pays off the loans according to the schedule, she will be 70 when the debt is paid up in full. Wow.

If you have children, it would be a wonderful gift to help out with their education. With the cost escalating, it will be increasingly important.

Read the full story from The Wall Street Journal here:

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