Don’t allow the ghosts of student debt to haunt your future
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GUEST: John Manyike, Head of Financial Education at Old Mutual
Education is the key to a great future, but, like all good things, it can come with a steep price tag. For many graduates, this means shouldering part of the national R16.5 billion student debt and starting a working life with this financial burden.
But, says Old Mutual, it’s not all bad news. Having a diploma or degree is an investment that can offer rich returns for the rest of your life, says John Manyike, Head of Financial Education at Old Mutual. Yes, you may have debt, but how you manage it will be key. “Student debt is a serious issue in South Africa. Debts accumulated by young people are increasing. For many, taking a student loan is often the only way to realise their dreams. “
“For parents, the obvious thing to consider is an education plan that matures when a child is due to enter a tertiary institution. If contributions keep pace with education inflation, this could guarantee a paid-up place at a university. Even if the amount realised falls short, it could reduce the loan size needed to get that qualification.
Education is the key to a great future, but, like all good things, it can come with a steep price tag. For many graduates, this means shouldering part of the national R16.5 billion student debt and starting a working life with this financial burden.
But, says Old Mutual, it’s not all bad news. Having a diploma or degree is an investment that can offer rich returns for the rest of your life, says John Manyike, Head of Financial Education at Old Mutual. Yes, you may have debt, but how you manage it will be key. “Student debt is a serious issue in South Africa. Debts accumulated by young people are increasing. For many, taking a student loan is often the only way to realise their dreams. “
“For parents, the obvious thing to consider is an education plan that matures when a child is due to enter a tertiary institution. If contributions keep pace with education inflation, this could guarantee a paid-up place at a university. Even if the amount realised falls short, it could reduce the loan size needed to get that qualification.
