$1,000,000 Prize

Did you know that a college degree will net a person $1,000,000 more in income in their lifetime? With costs of college education rising each year, I would hope so. The average private school now is around $40,000 a year. Certainly mom and dad want some return on their $160,000 payout. Kidding. I am sure that is not the reason parents set aside the money for their kids education. In fact, too many parents aren't even thinking about it. With a negative savings rate in this country, many young adults won't be able to afford to go to college unless they pay for it themselves.

Don't despair, there are loads of ways to get yourself into student loan debt up to your ears to help cover the costs. Did I just write that? I guess I am still thinking that Americans have to go on their debt diet and anything with the word loan conjures up fear and loathing. Keep in mind that student loan debt and home mortgage debt is the best debt to have because it is an investment in your future. Buying a new fancy car is not. (I didn't own a car in college or grad school so as to save money.)

If you decide to go heavily into student loan debt make sure you stay on top of your spending so you can afford your monthly payments. I chose to forgoe the Ivy League MBA and $50,000 in student loan debt for a local Master's Degree in a topic I loved -Instructional Technology and only racked up $15,000 in debt. Because I had a lower monthly payment then my MBA buddies, I had the freedom to start my first company on a shoestring budget. Within a few years I paid off all my student loans and was thriving.

I was smart enough (hey - afterall - I am Ms.Money) not to rack up any credit card debt. That is the debt that should keep you up at not until you get it paid off. I can't tell you how angry I get when I hear people are paying 30% interest on the credit cards. For some, if they only make the minimum payment it could take them 50 years to payoff. It should be illegal for credit card companies to charge that. What happened to laws against usury? I feel like I want to get involved in politics now just so I can lobby for laws again usury.

Anyway ... enough of my Monday night rant. Stop by Ms.Money's College Planning Section for tips on how to set aside money and ideas on how to secure low interest student loans. We are talking 7-8% not 30%. If you paid out $250,000 in loans and interest for a college education - you would still make out by bringing at least $1,000,000 more in your lifetime. An additional investment in an MBA or Master's program could net you almost double that if you play your cards right.