Chapter 2: Debt. The Good, The Bad and The Tolerable
Aussie FIRE | Financial Independence Retire Early
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The Benefits of Borrowing Money to Study
In 2010, Amy incurred $400,000 of supposedly good debt to buy an investment property. A decade later the house is now worth $325,000, $75,000 less than she purchased it for. The bank doesn't care she hasn't made a profit as Amy has to pay the interest regardless of the property's performance. Borrowing money to study is generally considered a good debt if you will be able to secure work after graduation. Other investment loans such as borrowing to buy shares are also traditionally considered good debts. Taking on student debt and failing to complete your qualification is a regrettable waste of money and time. If in doubt consider a year of work experience to give you
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