This article is part of our 52 week journey through Bill’s latest book, The Graduate’s Guide to Life and Money. Each week, a full excerpt from his book will be presented from beginning to end. To get your copy of his book, visit www.TheGraduatesGuide.com .
Pay off Your Pesky College Loans
Normally, I would approach all debt in the same general manner. I use a basic formula to help people get out of debt as fast as possible. Since this is a book geared towards college graduates, I decided to emphasize college loans separately. If the only debt you have is your college loans, you are quite fortunate for several reasons. Not having any credit card debt is perhaps your greatest achievement in college, next to your degree of course. It took me over five years to pay off my credit card debt after I graduated, mainly because I kept adding to it in the beginning. Another reason college loans are a preferable form of debt is their tax deductibility. Notice I said a preferable form of debt, not good debt. In other words, if you are going to have debt, college loans are one of the better types of debt, but ideally you do not want to have any debt at this stage in your life, if at all possible.
Another significant advantage of college debt is that some employers (in some instances this includes the federal government) offer tuition forgiveness programs. When you are looking for a job, this is certainly a benefit to consider.
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