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Personal Loans as a Student

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corgee
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Personal Loans as a Student  Reply with quote  

I am a student and have read some articles on being smart when pulling out personal loans to pay for school. I would like to get some opinions on how much student debt is ok to go into in terms of future expected salary.

I don't want to be paying off my loans for the rest of my life.

And what are some good things to major in?
Post Tue Sep 01, 2009 10:19 pm
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danielg
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I suspect there are a lot of possible salary-to-debt ratios floating around out there, but ultimately, I think your goal should be to minimize your debt as much as possible. Here are some ideas:

1. Compare prices. There are plenty of schools that will offer you an excellent education, but some will charge you a lot more than others. Friends of mine who went to schools comparable to my own were just as well-educated and enjoyed their time just as much as I enjoyed mine, but they had significantly less debt at graduation than I had because they went to significantly less expensive schools.
2. Apply to schools AND to scholarships. Schools may award merit-based grants and scholarships as part of their financial aid package, but there are plenty of other scholarships out there, so be sure to apply to any for which you qualify (they look good on resumes, too).
3. Don't be afraid to negotiate. If you get into the school of your dreams and they're offering you a pittance compared to some other schools, give them a call and see what other sources of financial aid might be available.

As far as what to major in, I think that depends a lot on what you want to do after you graduate. For example, if you want to work in a high-tech field, you might consider engineering. If you want to become a medical professional and/or work in biotechnology, you might consider biology or chemistry. If you want to become a teacher, you should probably major in the area in which you'd like to teach.

If you have absolutely no idea, you might even want to consider taking a year or two before going to school to get a job, do some work, and figure out where your interests lie. I know someone who went into school without any sort of plan, and who, several years and many thousands of dollars in debt later, still has no degree and is only now starting to have a plan. School will still be there when you decide what you want to do when you get there; don't be afraid to postpone until you're ready.
Post Wed Sep 02, 2009 1:49 am
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oldguy
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quote:
I would like to get some opinions on how much student debt is ok to go into in terms of future expected salary.


I would compare the starting salary (and job availability) with the salary of unskilled work. Eg, if the starting salary is $22,000 and unskilled work $20,000, then you cannot repay a big loan, there simply isn't enough excess income above the cost of subsistence. So the plan would be to work at the unskilled job and slowly pay as you go thru school.

Conversely, if the starting salary is $60,000 (and lots of job opportunity) then there is plentyu of excess income above the cost of subsistence - so a big loan can be quickly repaid. And it is worthwhile to quickly get the degree so that you can get onto the $60,000 payroll early.

The 'soft' degrees are in the first group ($22,000) - social work, communications, history, psychology, music, liberal arts, interdisciplinary studies, etc.

The applied skills degrees make up the second group - engineering, accounting, nursing, teaching.

A rule of thumb - the loan should not exceed the first year's salary.

It also helps to pick something that you are naturally good at and interested in. Eg, if you hate math and suck at science, you might not like engineering no matter what the pay.
Post Wed Sep 02, 2009 3:27 am
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Cherryl Hanson-Simpson
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My advice to you is try and earn while studying. No one can predict the future and because of this upon graduation it might take you sometimes before you gain a job. So why not look at your talent and see if it can be marketable in and around your college community. Use this money and invest in some short term investments that are liable. All the best.

http://blog.financiallysmartonline.com
www.financiallysmartonline.com
http://fsadvice.com
Post Wed Sep 02, 2009 5:29 pm
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corgee
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Thank you for the tips. I will definitely look into these things.
Post Fri Sep 18, 2009 6:25 pm
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jacktom
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your goal should be to minimize your debt as much as possible.
Post Fri Sep 18, 2009 9:35 pm
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danielg
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Be careful about taking a job while in college. If you work for a few hours a week in a job that complements your major, that can be very helpful, and the extra cash is nice to have. But if you're working 10 - 20 (or more) hours a week, the job may start to interfere with your ability to complete your homework, properly prepare for exams, etc. At that point, even if the job is related to your major, you may harm your chances of landing a good job in the future because your grades suffered so much during college.
Post Sun Sep 20, 2009 9:07 pm
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welbon
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why are you trying to pay your debts slowly?because this is very necessary to get relief from your debts in future.
Post Sun Aug 29, 2010 2:07 pm
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moonraker1
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Only borrow money and pay the loan that has a higher interest rate.
Post Mon Aug 30, 2010 4:07 am
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jason_simpson
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Personal loans for students are ideal for people like you who have a dilemma with your college tuition and without any means to pay. If you have bad credit, you can still get a student loan for your school fees. The advantage of loans for students is that it charges lower interest and you could choose from flexible terms. The resettlement begins six months after you graduate from college.
Post Sat Sep 04, 2010 9:25 am
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StockTrader6080
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It is important to see if working part time is in align with your long term objective. For instance if you pursuing MBA it is not worth to work in MCDonald or work as waiter in fast food restaurant.
Post Sat Sep 04, 2010 11:20 am
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moonraker1
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Take a wise decision depends on your current schedule and priorities. Personal loans are really good option for students like you as you can get loan with attractive rate to pay off your educational fees.
Post Tue Sep 07, 2010 7:58 am
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richrf
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What I would advise is to look for the most bang for the buck in choosing a school. The relative value of a good, inexpensive, junior college or state college vs. a private university is quite high. Unless there are special circumstance, your starting salary will be about equal. What counts are is your GPA, interviewing skills, and CONTACTS.

Once you have located a place for good but inexpensive learning then secure the necessary financing. The long term payback is excellent if you get a BA that is reasonably inexpensive. Here is a link concerning current job prospects:

How Much Is A B.A. Worth

Hope this helps with your decision.

Rich
Post Fri Sep 10, 2010 1:27 am
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Adria.John
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The biggest advantage is the low interest and small fees that are associated with student loans. When the student enters the repayment period, there will be give many options to select, based on the current financial situation. Some online loans can even be repaid over 30 years. If a financial situation is full of problems, then there is a possibility to suspend the loan for 3 years.

Loan Expert!
Post Thu Oct 21, 2010 12:04 pm
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