You should not go into debt for any item that depreciates in value. For example if you borrow money to buy a new car, the minute you drive that car off on to the road, that car is decreased in value. So in this way you essentially end up owing more on that car than is worth. That is one reason why people tell you to not go into debt.
One of the few items that appreciates or increases in value is the college education. College is an investment and you invest for the long haul. It will usually benefit you in the long run. So borrowing money for your college education can be fruitful. However, it may not prove to be fruitful immediately, and that’s one of the hard thing in this society today of instant gratification. It’s not an immediate return but it is a sound investment and over a period of time your college education it may prove to increase your earning potential that you have over your lifetime.
If you go to a graduate school your earning potential is increased even more. And you might come across studies that will say that college graduate will earn $600,000 to $1,000,000 more than a student who just has a high school diploma.
Let’s talk about other aspects. When families are asked to complete the financial aid application for financial support or government grant application what you need to do is complete the application as fully as possible as it is essentially a snap-shot of your current financial situation — your income, any liabilities that you have and your assets. But we all know that things happen in a family whether it is an economic down turn, or medical expenses brought on by an illness or an unfortunate accident, or a cut in the pay. Anything can change from the time that you have completed the financial aid application.
If you are ever caught in this situation your first priority is to call the financial aid office and inform them about your loss. If you have any further questions about what the procedure is at a certain school, you should not hesitate to call that financial aid office and they will walk you through it.