Advice Needed- Student Loans and Grad School (degree, cost, paying)

[nsgjdennis]

Here is my situation I am 25 and making around $50K I am doing what my undergrad is in, but I have $60,000 in student loan but I am on the 20 year track and I consolidated when the interest was low so my payments are only $235 a month. I do not like the field that I work in. I went into it just because the money was good and I was guarenteed a job. Seeing so many people I went to school with don't have jobs I am now glad that I did. My loans are so high because my parents could help me out at all. The average student loan debt is like $13,000 how is this possible? I went to a cheap school $7,000 a year and I ended up racking up this amount of debt..

I was recently accepted into a graduate program at a school that I really want to atend I will be able to take night classes so I can keep my job but the program will cost about $25,000. This is something that I really want to do with my life and even if I don't get a job in the field it is closely related enough to what I do now that it will help my job prospects in this field.

I just don't want to be overburdened with more debt. What does everyone think? Any advice would be appreciated.

[belovenow]

If this is the only debt you currently have - then I would not hesitate to get the graduate degree. Although you are on the 20 year plan, and indeed you will be obtaining more debt for more education - with nothing else over your head and a good paying job you could pay down this debt much faster. I know of couples with just 60k of income AND children who make ~1100.00 per month student loan payments to ensure that in ~10 years they won't have anything left. For you that would make you educational debt free by age 37 (considering it may take you ~2 years to get your graduate degree). It won't be easy - and you may question the sacrifices along the way to achieve this goal - but it is feasible.

If you are positive that the degree will both enable you to get a job you would be happy with, and also to earn more money, then I think you have your justification right there.

Lastly - once all the debt is acrued, post-graduation, seek out a new consolidation and payment plan (a new loan) - one that will better work with your new strategy, large balance, and new income.

[nsgjdennis]

Originally Posted by mbuszu

If this is the only debt you currently have - then I would not hesitate to get the graduate degree. Although you are on the 20 year plan, and indeed you will be obtaining more debt for more education - with nothing else over your head and a good paying job you could pay down this debt much faster. I know of couples with just 60k of income AND children who make ~1100.00 per month student loan payments to ensure that in ~10 years they won't have anything left. For you that would make you educational debt free by age 37 (considering it may take you ~2 years to get your graduate degree). It won't be easy - and you may question the sacrifices along the way to achieve this goal - but it is feasible.

If you are positive that the degree will both enable you to get a job you would be happy with, and also to earn more money, then I think you have your justification right there.

Lastly - once all the debt is acrued, post-graduation, seek out a new consolidation and payment plan (a new loan) - one that will better work with your new strategy, large balance, and new income.

Thank you for your quick response! I have paid down my credit card debt from about 4,500 in the begining of the year to about 1,500 now. I also owe about 3,000 on my car I plan to drive it until it dies and then just buying a used one. Also I've been getting a lot of extra money taken out of taxes so I'll get a big tax return. Unfortunetly I live in the DC area and its very expense my rent is 900 a month I plan to move out and get a roomate when my lease expires. I had moved here not knowing anyone so I ended up living alone. My school loans should be my only debt by early next year with any luck.

I don't know if i'll earn more money with a grad degree but I do think it will be something I'll enjoy and I don't think I'll earn anything less. $1100 a month sure is a lot of Money! I think I'll go on the 20 year plan for this degree to I have been getting anxious lately to start a family.