Re: Student loan debt

Re: Student loan debt

Now, being an adult, I would not take on more student loan debt than I would be able to make in year.

When I was 18 and going to college, though, that was the last thing I was thinking about. I was the oldest of 5 children. My parents were not paying for school and my dad made too much money so I got $0 in aid. My parents were/are not super knowledgeable about finances. I made a good decision and went to SUNY. I then went to Hofstra and got my Masters. All and all, I had about 25K in debt. Right now, I have under 10K. The amount I had was manageable. I honestly have no idea how people can afford more than that unless they lucked out and got a low interest rate.

I will try to instill these ideas in my future children as well. My DH as raised in a pretty fiscally conservative household and we are the same way.

I also think colleges and companies which provide the loans should be required to provide extensive education on student loans.

Re: Student loan debt

Student loan debt

Personally I would not take out significant debt to go to school. I'm too neurotic to owe anyone that much money (for anything other than a house which, to me, is different). I would only do it with a guarantee of earning X per year, which obviously doesn't happen to most people.

Re: Student loan debt

Re: Student loan debt

Re: Student loan debt

Re: Student loan debt

Re: Student loan debt

Posted by EclecticEsq10810

Posted by JAAMS

Posted by EclecticEsq10810
I can't fathom people having 100K in loans...especially if they graduate from no-name schools or with degrees that are borderline useless (liberal arts as opposed to Science/Math/Engineering/Medicine which yield high paying jobs).

Rethinking it: My original comments were probably not worth the drama.

Anyway, a degree can be useful without raking in tons and tons of money..."Usefulness" isn't determined only by financial factors.

I edited my post to better reflect the fact that I meant useless not in the degree itself but in its mission to obtain satisfactory employment post graduation. The world needs artists, journalists, musicians, etc too...but my point is that there is a major disconnect with a students expectations of getting a high paying job with a liberal arts degree over a STEM degree...the student needs to realize that the average Sociology major isn't going to raking it the dough (on average) like a Finance or Biochemistry major who is pre med. yes, there are exceptions..but most students don't understand the long term implications of student loan repayment until it is already too late.

Re: Student loan debt

I dont think I will ever be rich doing what I do, but I would never regret even the student loan debt that I have to get to where I am now. I did have the option to go to a CUNY school, and I should have, but decided against it for a dumb reason...I had a car payment and needed to work. My loan debt would have been a fraction of what it is now. That being said...

I am currently in a position that is very rewarding. I would like to think that what I do has made an impact on others. I have gotten so much reward from this field, from helping my patients, you could not put a dollar amount on it. It's value is too great.

Re: Student loan debt

From a financial/economic standpoint obviously the answer would be no.

From a life perspective some would say yes. There are experiences you have at colleges/universities, life experiences, that might be worth the debt to some. Sure you could have great experiences at community or state college but some people want the private experience or they want to attend the Ivy or other really great private institution and for them the debt is justifiable bc they will get that experience.

So to answer it is an individual decision and it would depend on the person whether they felt it was "worth it".

Re: Student loan debt

As someone with over 100k in law school loans, I would say that unless you are truly passionate about the field and are not in it for the money, then no. I have no idea how people even begin to survive having debt like I do making $50k or less. I make a good salary and sometimes it's tight. We can not get approved for a higher mortgage because of my student loan(our only debt) so that may be something to consider also

Re: Student loan debt

As an adult looking back, no I would not take on such debt and I hope my kids don't.

As a kid going to college, it was luck that sent me to Suny instead of a private college thus keeping my student loans relatively low.

For undergrad and grad I came out with 40K in student loans and thankfully it is all paid off. I paid no mind to the cost of school when I was a teenager. I just wanted to go.

I hope to our kids will follow our advice and think about costs when they select their school. I hope the the savings we have put aside and will continue to put aside will be a good hedge against the rising cost of college. I hope my kids love what they do by don't spend a fortune to do it.

Student loan debt

I don't think there's an easy answer to this one, b/c you never know where life will take you. I went to a "name" college and then went on to get my masters. I worked as much as I could throughout, but still graduated with about $50000 in debt (this is a while ago - with costs being what they are now...). I wasn't planning on going into a high paying field.

In the beginning, it was hard to pay off my debt - and to be in that much debt with a low paying job. I couldn't go shopping and my car was bare bones and I couldn't afford any extras (and sometimes meat was an extra!), but I never regretted it b/c I loved my field and needed the education I got to be good at it. Through hard work and some luck I ended up in a fairly lucretive position. I was in the right place at the right time and some doors opened for me that never would have opened had I not gotten the degrees that I did from the schools that I went to. I didn't even know my position existed when I started college, but I am blessed to have a job I love, that I was trained for, that pays very well.

If I hadn't taken out those loans, I would not be where I am today.

That's not to say that there aren't bad decisions - I am paying off my brother's student loans ($80k+ and NO degree!!) since my parents co-signed those and they will lose their house if I don't (a serious of bad decisions there). I just wanted to point out the other side of it...

Re: Student loan debt

I graduated in the late 90's and early 2000s with my Master's and my loans have been manageable.

I admit I don't pay as much attention since it doesn't effect me as much, but haven't a lot of the loan repayment terms changed for newer grads?

I am hearing more and more often that new grads have these $500-$1000 month payments and that they are NOT negotiable.

Re: Student loan debt

I think the short answer is "no."

While I agree that financial benefit is not the only way to measure a degree's worth, many of these loan repayment periods can last as long as a mortgage. I am not sure it's worth it to be tied to a significant payment for almost one's entire working life to pay off, say, a great college experience, or having certain professors, or studying a certain subject.

I am glad to see this post because it is reminding me to talk to DH about what we want to do for our children.

I don't have a useful precedent for undergrad because my father's life insurance policy paid for my bachelor's. I would much rather have loans and have him here - obviously!

I went to an expensive school (NYU) but between scholarships and commuting it was actually a touch cheaper than dorming at Binghamton.

I paid cash for my master's at Stony Brook. Since it took so long for me to find a teaching job, I am so glad I didn't go to a more expensive school and take out loans.

The theme that I am seeing throughout the responses is that so few people know at 18 what they want to do with their lives and more to the point, how much money that commands. When I taught Economics I did a unit on careers to try and educate kids on this subject.

Re: Student loan debt

Sorry If I cam off as judgemental, that was not my intent. I know each situation and individual is different.

I went to a 2 yr college first because my parents couldnt afford college, no financial aid, etc... I worked my way through college and took out student loans the whole way. I transfrerred to a suny school for my bachelors. When I graduated I took a job at a company for decent pay but mainly because they had tuitionreimbursement and that is how I got my masters. So I get it, I know that it isnt easy.

Re: Student loan debt

I agree with most posters that the answer is a very individual one.

I was lucky to not have any debt from undergrad as my parents paid for all of it. I did, however, take out about $100k for law school ( my parents paid for some). It's been ten years and I still have a significant amount of debt - but my interest rate is like 2% so I am not in any hurry to pay it off. It really does not bother me to have the debt and it has not impede us at all. We have a pretty large jumbo mortgage and it was not a problem getting it and our lender (Chase) told us that they don't really care about student debt.

That being said if I had to do it over I would do it in a heartbeat. I went to a top law school and graduated at the top of my class and it gave me great opportunities that I would not have had if I had gone to a less prestigious school. I definately believe that the jobs that I have had I have gotten in part because of where I went to school. I started my career with several six figure offers. But it all depend on what you want to do. Honestly, I would not go into debt for a mediocre school especially when there are state schools available, but there are definately so e schools that will definately open doors for you.

I know that this is not a popular opinion but I have definately seen that, especially when trying to get a job, not all schools were created equal and there are some careers where the school you attended really matters.

Re: Student loan debt

Glad the original post responded to her original post. People feel their own circumstances can be applicable to everyone else when simply that just isn't true.

Someone said to only go to school on what you expect to make when you graduate. 12 years ago that was $30k. I couldn't go to college anywhere for only $30k no matter how hard I looked. I had scholarships, I worked all through school, my mom helped as best as she could as a single mom, with two others in college at the same time as myself.

We all strive to do the best we can and for me getting my Barch would help me to reach that plan. I graduated with 40K and wanted desperately to go to grad school but knew I couldn't afford it. I am now making decent money and my loans should be paid off in about 3 years, hopefully less. Sometimes you need to struggle for a time in order to come out on top. Not everyone is fortunate to be able to go to college.