<p>Absolutely! And unfortunately loan rates through the government have been as high as 6.8% lately, which can really make your balance grow fast. When I was in school I consolidated at 2.4% - that’s a big difference in rates, especially when you consider the economy was better then than it is now, yet rates were lower for education. </p>
<p>But, there is also a clause in the new law that any unpaid balance at the end of 20 years of payments will be forgiven and you will only pay income taxes on the left over amount. So if interest accrues, you never make enough money to pay off the loan, and you still have it 20 years later, your loans will be forgiven.</p>
<p>However: Also know that student loans can affect your ability to buy a car or a house down the line. If you don’t understand how, try looking up the income to debt ratio and read about how that affects your ability to buy a home. If that is on your radar, its something else to consider.</p>
<p>Also think down the road about your 2nd career. Almost every actor has one. I have numerous friends who have been on Broadway, sung at the Metropolitan opera, performed in TV series, and movies, yet still had day jobs - even while on Broadway or at the Met. Many successful performers have another marketable skill they can use to pay the bills. I’ve know performers who write for magazines on the side, manage political campaigns, develop websites, make small scale demo recordings, and even transcribe medical records in the dressing room. After they’ve had their fill of performing, many go on to get a graduate degree and teach, or move into another career - I just spoke with a colleague who is going to medical school at age 30 after spending the last 8 years performing professionally. Some choose to avoid going back to school and enter real estate, sales, banking, or open a small business (even possibly a youth or community theatre) and take their time to work their way up. </p>
<p>If you are considering a 2nd career that will cost money (i.e. law, medical, business school), you will almost definitely need to take out loans to pay for it. If you are already in a lot of debt from undergrad, it can really limit your choices of where you go for grad school.</p>
<p>Its a lot to think about, but that’s what you have to do. Don’t let your emotions overpower your logic. Carefully research all of your options and lay them out in front of you so you can see the bigger picture. The most successful people in life are not always the ones who charge out of the gate the fastest (i.e. go to the biggest and best schools), they are usually the ones who took their time to build. If you need some inspiration, read “Built to Last” its a great book on how successful businesses built their corporations for the long term.</p>
<p>AND - enjoy the holidays.</p>