By Michelle Durham
DOYLESTOWN, Pa. (CBS) — Now that President Obama has signed an executive order designed to lessen the student loan burden many college students feel upon graduation (see related story), one local expert says she is happy to see that young people have more financial options.
But she wants to make sure everyone realizes these are debts that must be repaid.
Certified financial planner Paula Nangle of the Marshall Group (who is also president of the local chapter of the Financial Planning Association), says, “It’s kind of a double-edge sword. It may provide some level of relief, but you are still going to be obligated to repay that loan. What I would hate to see is people say, ‘ Oh well, I don’t have to pay as much now.’ And they are going to take longer to repay and spend that money living a little bit beyond their means. Then there is the other side, where people are just struggling to make ends meet. I think it’s a real help to help people get their feet on the ground.”
Nangle says living within your means is the most critical component to paving the way to a solid financial future.
“Watch out for your credit score,” she advises, “because if you don’t, everything else costs you a lot more money.”
And, she points out, potentially a better job, too, as some employers look at them.