I read this post at MSN Money just now about "How Much Student Loan Debt Is Too Much" and it kinda pissed me off.
It says the average student has $20k in student loans and first of all, I just don't agree with that figure. I'm no economist, but I remember at my undergrad "Exit Interview" for financial aid, they told me my loan debt was less than $20k and when I looked at the forms, all that was listed on them were my federal student loans, not the whopping $20k private loan I took out. It's just an anecdotal piece of information but then the same thing happened yesterday when I called up the Department of Education looking for some help with my private grad school loan (they didn't have it listed in their records). I know many many people who took out private loans. Hell, at my grad school it was pretty much mandatory unless you were very wealthy to begin with. I have a feeling that many more students carry more debt than the studies indicate. But that's just my two cents.
Anyway, even though, gasp, I owe a significant amount of money due to my education, I don't regret it for a minute.
After college I briefly joined the "rat race" working as a secretary in a big city. I was making good enough money considering what I was required to do, but I HATED my job and wanted something more fulfilling. Most entry level jobs are pretty much the same unless you are 1) extremely lucky or 2) extremely talented in a field.
I always knew I wanted to get a professional degree to advance my career options and it wasn't about the money for me. Sure I did the cost/benefit analysis before packing my bags, but it's so hard to predict where life will take you after graduation.
Truth be told, I am looking for a more lucrative position right now, but I currently am proud of the career choices I have made, including going back to school, and I don't think the price tag should have scared me away. I was fortunate enough to go to a very selective liberal arts college and the education I received there was invaluable. Some people think state school is a bargain and maybe for them it is. But I have no regrets.
I also think, despite the staggering amount of my student loan debt, that I can get it under control and still live the kind of life that I want.
And now I'll step off my pedestal and get back to work!
5 comments:
I totally respect what you're saying. Plus, it's your life. Different people value different things and that's okay.
But your debt load would have me chewing my fingernails clean off on a nightly basis. If I understand what you've written so far, you are $157,000 in debt on a $43,000 salary. Your payments are probably at least $1,800/month (never mind any other debt you might have). That's twice as much as my rent! I make about $7,000/year more than you, and a monthly debt payment like that would leave me with $800/month for EVERYTHING ELSE-- expenses, saving, etc.
I couldn't do it unless I was living at home-- I have no idea how you're swinging it. And to top it off, you'll be paying $1800/month to your lenders for 7-10 more years (depending on your interest rate)!!!
To me, that's not even close to being worth it. I understand you can't do anything about it now, but that salary is just all out of proportion to your debt load. Unless you start making six figures, I foresee a lot of struggle for you over the next decade-- and that's a long time to be paying for even the greatest of college experiences.
This is a sincere question-- I'm not trying to make fun of you. What about your college experience made it so worthwhile that you can say it was worth six figures in loans?
Oh wow, that's a good question and one I may have to address in a future post. Just to clarify my monthly debt payments are only $826. Only, ha! My father is paying a student loan for me in the amount of $303. The vast majority of my debt is from law school. I'm just starting out in my career at a very low paying job hoping it will pay off in the future. I'm fairly certain it will. Otherwise I may have to sell my soul and become a corporate lawyer. Over the course of my lifetime though I know I will see the rewards of my education financially. As for intrinsically, yes it was worth it in that I am respected in my field and get to do exciting and interesting work. And from what I've been seeing out there, six figure student loan debt is the new black. I hope you keep reading!
Also you can see an outline of all my debt on the handy google document shared on the upper right hand corner of my blog. I just updated it and didn't do the final total yet but it's less than $150k, somewhere in the $130s. I don't update network IQ frequently because it gets too confusing.
Okay, I see now. That makes a big difference. If (between your contribution and your dad's) you're paying $1,200/month and your total debt is $135,000 (ish), you're still looking at about 10 years of repayment, but $800/month is MUCH more manageable than $1,800. And I am sure you will be making more money at some point.
I wasn't trying to be rude, it just blows my mind to picture having that much debt. That's as much as your BF just took on for a house! I'm saving like a demon right now so I can go back to school in a year's time and finish college without taking out loans-- I just hate being in debt, though I am willing to eventually take on a mortgage.
It's funny because I was having this conversation/argument with my dad the other day. He was telling me that I should go back to school right away because education is more important than anything, so what if I have to take out loans, etc. I vehemently disagreed (which is how I made it out of my first two years of undergrad with only $5k in debt-- long since paid off).
But as I said, just because I wouldn't have chosen your route for myself doesn't make your way wrong. And I would definitely love to read more about what made your college/law school experience so invaluable. It's a subject I can't get enough of. Please do write an entry on this, if you feel like it.
And even though it's not PF devoted, feel free to drop by my blog anytime :-) I'm a member of the WIR community, and one of the posters there mentioned your blog. It's a good read, and I have to say that you've done a fantastic job in the short months since you've started.
Yeah I definitely hear you about not wanting to go into debt for school. Had I not gone to law school I would probably have paid off all my undergrad debt by now and be in a much better position debt-wise but I was pretty set on getting out of my parents' house, out of a crummy job and onto the future. Looking back I probably could have waited a year or so longer before taking the plunge and saved up more. We live we learn I suppose. Good luck with your decision and I'll be sure to check out your blog. I have lurked on WIRR before but didn't see any mention of me. What did they say?
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