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Is this a wise decision?

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BlackWizard
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Is this a wise decision?  Reply with quote  

Hey everyone. I really need some advice on my current situation, my parents are bloody terrible when it comes to money.

I'm trying to attend a public university to obtain my Bachelor's degree (the median earnings for my degree is $42,000). The only thing that's stopping me is having to take out a big fat loan ($16,000) and that's only for the first year. Tuition and fees for this school are around $8,000 and the estimated total cost of attendance which includes everything is around $21,000.

Overall after I graduate with my B.S. I'll be around $40,000 in debt. This frankly scares me, my parent's seem to think it's not so bad, but I don't wan't to be in debt forever. I only have $2,000 dollars to my name and am currently debt free. What do you guys recommend, should I go for it, or wait and save a little more?
Post Fri Aug 12, 2011 6:10 pm
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coaster
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Your student loan debt versus your projected first year income is just a tad under what the recommended maximum is.

http://www.custudentloans.org/2011/02/24/new-rules-for-college-loans-matching-a-career-to-debt-repayment-2/

So, I'd say, go for it. I don't think waiting is a good idea. The cost is only going to go up, and you're going to get out of that going-to-school groove you're in now. Take it from one who dropped out for a year to work: don't do it.

~Tim~
Post Sat Aug 13, 2011 12:55 am
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eastmn
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You might also want to look into what the feds are offering right now as far as grants for retraining (unemployment retraining grants). Many of these type grants will also pay for books and a weekly salary. I had relatives who wiggled me into one of these programs back in the 1980s; age 21 Wink
Post Sat Aug 13, 2011 10:01 am
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euniceB
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It is really a problem. Perhaps, you can find a part time job to help with your expenses.
Post Mon Aug 15, 2011 7:49 am
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euniceB
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Let's say you want to keep your finances pretty basic, but still want a good return on your money. It's time you considered the solid rate or return accessible through such resources as a savings account, cash industry account, certificate of deposit or savings bond. Not only is the available rate of return good and risk-free, but when you mix up these numerous investments, you can give your finances wings.

Savings accounts are accounts maintained by retail financial institutions that pay interest but cannot be used directly as money. Most savings accounts donít sport a high interest rate, however, so it pays to shop around. Many banks offer an interest rate of less than 1 percent, but it is possible to find 4 percent or more. Keep in mind that it may be necessary to maintain a high enough balance in order to trigger the higher interest rate. Saving money will help for you to sustain your financial needs as you study.

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Post Mon Aug 15, 2011 7:53 am
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Gary Barzel
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I would say go for it. With the knowledge and skills you will acquire in college as well as the opportunities it is worthwhile. If you are still skeptical then maybe push if off for a semester and get a full time job. Saving the money won't cover all the costs but you will be going into college with a little more money in your bank account.
Post Tue Aug 16, 2011 11:52 am
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littleroc02us
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I went to a Technical school for my second degree and unlike the first time around to get my BA I worked fulltime at a camera retail store working 4 10 hour days and went to school 3 days a week. I was able to come out of school with only 5k in debt and a very good degree that paid me around 40k right away. You don't have to be like everyone else, because most students are broke.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Tue Aug 16, 2011 1:34 pm
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kate032
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Re: Is this a wise decision?  Reply with quote  

quote:
Originally posted by BlackWizard


I'm trying to attend a public university to obtain my Bachelor's degree (the median earnings for my degree is $42,000). The only thing that's stopping me is having to take out a big fat loan ($16,000) and that's only for the first year. Tuition and fees for this school are around $8,000 and the estimated total cost of attendance which includes everything is around $21,000.

Overall after I graduate with my B.S. I'll be around $40,000 in debt.


If the loan will be $16,000 for the first year, then why will the overall debt only be $40,000 for all 4 years?

I think there are a few other factors to consider as well. Where are you, academically, as compared with the rest of your high school class? Studies are beginning to show that students in the lower 50% who have to obtain large debt may be better off choosing another career path.
Post Wed Aug 17, 2011 12:15 am
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