:max_bytes(150000):strip_icc()/GettyImages-658984575-bc402f52fe994b0daf3c6c6128c45405.jpg)
Some loans are better for your finances than others. Good debt includes funding that puts you in a better financial situation in the long run, while bad debt leads to credit problems. Student loans are typically considered good debt because a higher education can lead to the career or income you want.
Key Takeaways
- “Good debt” can include any type of debt that offers a solid return on the investment.
- Student loans are considered good debt due to their potential for long-term benefits, including increased earning potential.
- Other factors of good debt include lower interest rates, flexible repayment options, and potential tax deductions.
- Keep in mind that there are risks associated with student loans, such as earning a degree that d…
Read the full article at: https://www.investopedia.com/student-loans-good-debt-8559798