Will you borrow the money for your children's education?
Borrowing the money for your children's education might end up costing you a lot more than you expect.
If a child was born in the year 2002, their education could cost $105,706* more in the year 2020 because of the interest charged on the loan. Your children's education is very important, but you shouldn't have to be put under a heavy debt load to make their education a reality.
Save or Borrow?
What should you do? Compare saving with Heritage Education Funds Inc. to borrowing for your child's education.
Will you let your child depend on student loans?
Assuming that your child even qualifies to receive student loans, at graduation they could be faced with tremendous personal debt.
Let's say that the salary of a recent university graduate is $30,000. With a debt load of $65,000, it could take over 20 years to pay off those student loans by making the minimum payments.
* Monthly net income based upon starting salary of $30,000.
** Food costs for a well-balanced diet for an adult male in Vancouver. Source: Sheila Murphy, "Healthy Eating Makes a Difference".
*** Average Apartment Rental Costs in Vancouver. Source: Runzheimer Canada Inc., June 1998.
Let your child earn the money with a summer job?
How many summer jobs do you know of that can provide upwards of $100,000 of income over 4 years?
Let's say that the salary of a recent university graduate is $30,000. With a debt load of $65,000, it could take over 20 years to pay off those student loans by making the minimum payments.