Finish college fast or finish college without debt
01-09-2007, 01:24 PM
#1
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Finish college fast or finish college without debt
Just talked with my college adviser yesterday about my graduation. It looks like it will happen sometime in 2008. It will either be in May, August or December. If it happens in either May or August, I will have completed my 4-year degree in 3 years! The May graduation is kind of pushing it, and I would have to do some serious overloading, as well as some distance learning, but theoretically it's possible.
So far I've stayed away from student loans and my only debt is my S2000, which I may just be able to pay off by September of this year. Kind of depends on how much I get on my tax return. If it does happen, that means that I will have paid for my entire car in 18 months!
Right now I'm averaging about 30 hours a week at work, and every time we have a break or even a holiday I pull off 40 hours. It's not affecting my education, had a 4.0 last semester and I'm working in IT, so it's great experience. There is no way I'd be able to work more than about 10 hours a week if I were to do those crazy overloads. Basically I wouldn't be able to pay for anything other than insurance and gas. A whole year's worth of tuition would have to be paid for using student loans. I'd end up with about $10k worth of debt.
I know some of you will say just sell the car and pay for the education, and I've thought about it. I don't think this will make much sense though, because I'll just probably end up buying something more expensive as soon as I got a full-time job, like an Elise. So in the long-run I don't think it makes a whole lot of sense.
I'm guessing I can get something in the $40-50k/year range starting out, given that I've worked for the same employ for 4+ years right now in IT and I already had an internship and will probably have a second one this summer.
So what are your thoughts?
So far I've stayed away from student loans and my only debt is my S2000, which I may just be able to pay off by September of this year. Kind of depends on how much I get on my tax return. If it does happen, that means that I will have paid for my entire car in 18 months!
Right now I'm averaging about 30 hours a week at work, and every time we have a break or even a holiday I pull off 40 hours. It's not affecting my education, had a 4.0 last semester and I'm working in IT, so it's great experience. There is no way I'd be able to work more than about 10 hours a week if I were to do those crazy overloads. Basically I wouldn't be able to pay for anything other than insurance and gas. A whole year's worth of tuition would have to be paid for using student loans. I'd end up with about $10k worth of debt.
I know some of you will say just sell the car and pay for the education, and I've thought about it. I don't think this will make much sense though, because I'll just probably end up buying something more expensive as soon as I got a full-time job, like an Elise. So in the long-run I don't think it makes a whole lot of sense.
I'm guessing I can get something in the $40-50k/year range starting out, given that I've worked for the same employ for 4+ years right now in IT and I already had an internship and will probably have a second one this summer.
So what are your thoughts?
01-09-2007, 01:41 PM
#2
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i'd imagine 40-50k could get you a long ways in michigan. if you are sure you can get that out of college, why stress yourself out, May, August or December in the grand scheme of life is such a miniscule window.
i would just keep your plush schedule til december of next year. that way you can work, pay for your bills, and have time for school. probably the tease is to get out as soon as possible, but it is just a few months if you think about it. selling the car now to be able to finish faster seems like a burden. i can see if you could shave off 2 years of school, it would be a different story but we are just talking about a few months right?
hell, i walked in 2000, but i always had a good job in my field, a job most graduates would have killed for at the time. i only had 3 classes to go to get my degree.
it took me 2 years to finish those 3 classes, i didn't get the paper til 2002. I DON'T REGRET IT.
i would just keep your plush schedule til december of next year. that way you can work, pay for your bills, and have time for school. probably the tease is to get out as soon as possible, but it is just a few months if you think about it. selling the car now to be able to finish faster seems like a burden. i can see if you could shave off 2 years of school, it would be a different story but we are just talking about a few months right?
hell, i walked in 2000, but i always had a good job in my field, a job most graduates would have killed for at the time. i only had 3 classes to go to get my degree.
it took me 2 years to finish those 3 classes, i didn't get the paper til 2002. I DON'T REGRET IT.
01-09-2007, 01:49 PM
#3
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Here's the other thing. I like the job, but not the work environment. I can't stand the management. But that's a whole different topic. The problem is that around here I could never get anything like it that paid decent, allowed me to work whenever and was in the same field.
To get the $40-50k I'd have to move somewhere else like Indianapolis, Chicago, etc. At first I will probably want to stay in the midwest, so while that money may not be quite as much as it is where I'm living now, I can still live rather decently on that.
To get the $40-50k I'd have to move somewhere else like Indianapolis, Chicago, etc. At first I will probably want to stay in the midwest, so while that money may not be quite as much as it is where I'm living now, I can still live rather decently on that.
01-10-2007, 03:19 PM
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I think debt (student loans) should be your last option before dropping out of school. I know I dont want the added pressure of paying off a loan after I graduate and it makes grad school that much harder to work into your schedule. State colleges (and im sure private ones too) offer many grants and scholarships for students with high GPAs and busy schedules. Look into these grants before taking out a loan.
01-13-2007, 10:35 AM
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I disagree.
Get out fast. Especially if the loans are federally subsidized. Chances are the rates on the subsidized loans are lower than on standard loans as well. Also, I think the general rule of thumb is if you come out of college making more (per year) than you have in debt (total), you are ahead. When you are in college you are basically just spending money, not accumulating anything. The faster you can get out of that cycle, the better.
Take out the loans, and live like a student until you graduate.... Its OK to assume debt, especially when you are young (as long as its not out of hand). If you only have $10k in debt, and can be working at $40k a year after, you are WAAAY ahead. My sister just graduates law school with $70k in debt (but she is making $75k right out of the box). I just got my Master's in Taxation with $17k in debt (but i will be making mid $50's). Just try to keep your debt to equity ratio at 50% / 50% when compared to your projected income (dont exceed what you are going to be making).
John
Get out fast. Especially if the loans are federally subsidized. Chances are the rates on the subsidized loans are lower than on standard loans as well. Also, I think the general rule of thumb is if you come out of college making more (per year) than you have in debt (total), you are ahead. When you are in college you are basically just spending money, not accumulating anything. The faster you can get out of that cycle, the better.
Take out the loans, and live like a student until you graduate.... Its OK to assume debt, especially when you are young (as long as its not out of hand). If you only have $10k in debt, and can be working at $40k a year after, you are WAAAY ahead. My sister just graduates law school with $70k in debt (but she is making $75k right out of the box). I just got my Master's in Taxation with $17k in debt (but i will be making mid $50's). Just try to keep your debt to equity ratio at 50% / 50% when compared to your projected income (dont exceed what you are going to be making).
John
01-13-2007, 11:17 PM
#7
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I disagree.
Debt is like a fungus that is easy to get but hard to get rid of. It's a monkey on your back and you should avoid it especially when you are young. It closes doors and limits options and frankly as a college grad that's not what you need.
What you need is freedom to make choices that will effect the rest of your life. If you take on debt you are committing to getting out of school and taking on a career, a job, that may be dictated by the amount of debt you need to service. You may not for example be able to accept a lower paying job in a career you want to pursue (an internship for example) because you have a debt to service and may have to settle for a job that pays more in the short term at the cost of where it gets you down the road.
Your post college years are formative for your whole career. Debt load shouldn't be part of that if you have the option of avoiding it. The best careers are not always the ones with the highest starting salary. You have lots of time to screw up your life. There is no need to start right from the word go.
Debt is like a fungus that is easy to get but hard to get rid of. It's a monkey on your back and you should avoid it especially when you are young. It closes doors and limits options and frankly as a college grad that's not what you need.
What you need is freedom to make choices that will effect the rest of your life. If you take on debt you are committing to getting out of school and taking on a career, a job, that may be dictated by the amount of debt you need to service. You may not for example be able to accept a lower paying job in a career you want to pursue (an internship for example) because you have a debt to service and may have to settle for a job that pays more in the short term at the cost of where it gets you down the road.
Your post college years are formative for your whole career. Debt load shouldn't be part of that if you have the option of avoiding it. The best careers are not always the ones with the highest starting salary. You have lots of time to screw up your life. There is no need to start right from the word go.
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01-15-2007, 10:01 AM
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I agree.
I am still a student (sophomore) in college, and if I had debt to deal with, I wouldnt be able to concentrate in school.
For those students who are willing to be in debt, to own a s2k, I dont think it is worth it. My father just lets me take his s2k for a spin occasionally, but my regular is a Accord which is more than enough to take me to school and work.
I am still a student (sophomore) in college, and if I had debt to deal with, I wouldnt be able to concentrate in school.
For those students who are willing to be in debt, to own a s2k, I dont think it is worth it. My father just lets me take his s2k for a spin occasionally, but my regular is a Accord which is more than enough to take me to school and work.
01-15-2007, 10:49 AM
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Not all debt is bad. There is good debt and bad debt. Debt towards an investment that allows your to increase in value (education, real estate, etc). Debt for everyday expenses or unnecessary items (vacation, car parts, movie tickets) is bad debt.
All else being equal, taking out debt is good I think, assuming you can pay it all back with a nice post-college salary. I was in your situation previously. I was shooting for 3 years graduation by taking a full course load each semester. I even took 23 credit hours in one summer at two different schools. At the end, I decided to graduate in 4 years. I am in my last year right now and taking 9 credits per semester.
You could probably get more than 40-50 k in IT if you came to Chicago or other major cities , but of course the cost of living is much greater.
My advice: take it easy and take your time
All else being equal, taking out debt is good I think, assuming you can pay it all back with a nice post-college salary. I was in your situation previously. I was shooting for 3 years graduation by taking a full course load each semester. I even took 23 credit hours in one summer at two different schools. At the end, I decided to graduate in 4 years. I am in my last year right now and taking 9 credits per semester.
You could probably get more than 40-50 k in IT if you came to Chicago or other major cities , but of course the cost of living is much greater.
My advice: take it easy and take your time
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