Do you agree or disagree about this discussion?

Education and education financing is part of the retirement equation. Education is an investment towards better retirement as the statistics clearly show that those with college education will significantly out-earn those without college education over their lifetime. However, it would be financially negligent to think about higher education without planning for the financing of such pursuit and the eventual costs, as well as seeing the benefits. Student debt to finance educational pursuits is something many of us have to deal with. The correct approach to needed financing for education should be similar to starting and financing a business. An entrepreneur can have a great idea, borrow money and invest in that idea. However, if borrowing is excessive and without a comprehensive financial plan to support the debt on an ongoing basis, even a successful business may not be financially successful if it has to deal with a mountain of debt for years to come. The successful creator of the business understands that operations and financing are two different things and both must be managed. Not only does that person have to run a successful business, but they must also learn to plan the finances of the company, manage debt and expenses and make sure future profits outweigh the cost of the debt. It is understood that borrowing is part of the plan, but in a planned and calculated way with a keen eye on the revenue to make sure the use of debt is justified.

Similarly, an aspiring college student is borrowing to invest in her or his future. The business is the individual's education and future career. The student is investing time and financial resources, in many cases borrowed capital, to gain the needed education so the business, the individual again, can earn higher revenue in the future. However, they must operate with a forward looking financial plan that takes in consideration the investment, the borrowed capital, and the earnings potential and make sure that the plan allows enough flexibility to service the outstanding debt in a way that justifies the investment, the debt, and the future earnings.