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Old 01-05-2015, 10:19 PM
 
17 posts, read 18,431 times
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Quote:
Originally Posted by JT-3 View Post
I hear ya - but I would try and not compare yourself to your peers or brother and look at life differently. And that minimum wage job might lead to something more, as it has done for many of the founders of today's hot companies. It's about the connections, the people you meet and the money will eventually follow. I would suggest reading Inc Magazine for inspiration and ideas - stop worrying about debt and school and think about tomorrow.
Thank you, JT-3. I will check out that resource (Inc Magazine)!
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Old 01-06-2015, 07:26 AM
 
894 posts, read 732,998 times
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Wait, are you working at all? Nights, weekends? Tending bar etc?

I ask because there's no reason you shouldn't be. My daughter is taking a full load, pre-med, playing college basketball AND working (A couple evenings per week when it isn't competing with basketball) bartending and making decent cash.
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Old 01-06-2015, 08:02 AM
 
2,303 posts, read 2,259,526 times
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Quote:
Originally Posted by GraduatewithDebt View Post
Yes, I agree it is a big gamble. There is a link on the main economics page here for an article from US News detailing how a lot of students are rolling the dice on this same strategy. Take out as much student loan debt as possible, and then try to get it forgiven under this program. A lot of people in my graduate program are doing this too.
A lot of people I went to school with took out massive student loans too. They're still in debt and I graduated 8 years ago from undergrad. Just because everyone's doing it, doesn't make it smart.
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Old 01-06-2015, 08:17 AM
 
907 posts, read 556,429 times
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Quote:
Originally Posted by GraduatewithDebt View Post
A couple are even thinking about going to get a second Master's degree if all they can find is a minimum wage type job now, because going back for a second Master's degree means they can defer their student loans further until something better comes about.
Why in the world would they do that? Have they never heard of community college? Much cheaper, same effect. If you're going to put it off and that's your main reason for going back to school, then go to community college and take small loans, or even pay out of pocket. or both. I'm doing this. If you were smarter than me, because I'm just going straight through, you'd take out $1000 loans every 9 months and do 6 credits. 3 months doing 6 credits, 6 months out of school. Then when they come calling, register again for another 6 credits. You can literally put off your debt for years doing this, waiting for something to come along. But, I just rushed through because I don't want to be delaying things. It was more a transition to get into the city, because I lived in the sticks before. And community college=easy way to move.

but no, it is not a good idea to maximize debt. get out of debt the following ways.
*form llc, get partners, buy all your debt, sell off rest of debt, close llc.
*save up. settle debt for agreed upon sum. 20k in cash=no debt. if not, 30k..etc etc. make them offers.
*form llc, conduct life on your business's credit. never pay off personal debt in the first place. run it up.
*skip the country, make less than you need to pay off loans, but enough to still live well. research.
*fake own death
*bite the bullet and pay it off.

i guess, easy for me to say...i only have average debt. not 80k. 80k would be insane. i reached 20k my senior year and i was like, "this has got to stop". but it didn't make sense to drop out when i was so close to finishing.
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Old 01-06-2015, 08:33 AM
 
3,154 posts, read 3,062,729 times
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Quote:
Originally Posted by GraduatewithDebt View Post
Hi CD Forum,

New here, and would like some advice. As so many here and out there all over the country, I graduated from college (undergrad) with deep student loan debt (about $85K undergrad) and couldn't find a job that pays anything, so I decided to go to graduate school. I am still living at home with my parents, and it looks like it will stay this way for the foreseeable future. Most of my friends are all in the same boat, still living at home, in big student loan debt, and pursuing an advanced degree or another undergraduate degree. A couple of my friends have over $200K in debt already.

My questions pertains to the following. There has been quite a bit of talk of a student loan bailout plan, and that it could even come about as part of the next election. I am aware of the Public Service Loan Forgiveness Program. In fact, a couple of my professors in school were even recommending taking on as much debt as possible under this program, and then only making the minimum payments for 120 consecutive payments (10 years), and having the rest of the debt load forgiven. They said they used this exact strategy, and are on track to have roughly $200K in debt forgiven after the 10 year period. So basically make interest payments for 10 years, and then have the entire principal balance of the loan(s) amount forgiven.

Does taking this maximum amount of debt out in grad school sound like a good strategy if I can land a public service sector job after graduation? How long will this legislation be on the books? I am worried if enough people are getting these large amount forgiven left and right, that they will put an end to this program. Also, what about the possibility of a bailout program for the millions of students in debt across the country. What do you think this would look like, and for what amount?

Thanks in advance for your help and advice!!
Oh. My. God. That is the worst advice I've ever heard of. Your professors are financial idiots. It is nearly impossible to get that program to work for you. I have over 100K in debt (after more than 10 years of repayment), and I have never been able to get on that program, in spite of working in qualifying jobs since its inception. The requirements for the program make it so that 1-you must have very high debt and very low income for it to work. 2-you must consistently work at a qualifying job (it's actually not that easy to do that) in a full-time position. 3-you must get on the right repayment plan.

What normally happens is one of the following:
1 - you can't get consistent (for 10 years) full-time work at a qualifying institution (your professors have failed to mention that professor jobs are nearly impossible to get - they are some very lucky, very talented individuals to have those jobs).
2 - You have the right job, but you can't afford the payments on the qualifying plan. For example, in my case, and I don't make much money really, the qualifying payment plans would require about 1200 per month, in which case the debt would be paid off in 10 years anyway - in fact, there is no qualifying plan in my case where there is any debt left over after 10 years. I can get lower payments, but then I'm not on the qualifying plan. So essentially, there is no point to the program for me.
3 - You have the right job, the right debt to income ratio, the right plan, and then - you get married. Yep, that ruins it, because now they add the spouse's income to yours to decide which plans you qualify for and what the payment will be. This is what happened to me.

So basically, if you want that plan to work, you must guarantee you can get a ft qualifying job, and won't get a raise, get laid off or have your hours cut, or get married for 10 years. Good luck with that.

You should also know that the student loan program is notoriously capricious. The rules constantly change and at any time they can pull the rug out from under you. I've been struggling with student loan debt since the 90's, and in that time I have seen so many programs come and go. I've been on programs that suddenly disappeared more times than I can count, had my payment suddenly jump up and been told sorry, congress passed some new law, and so on. You must not count on this program - it would be incredibly foolish and possibly it could ruin your life. I'm there now.

The only reason to take on debt for graduate school is if you are sure the return on the investment will be worth it.
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Old 01-06-2015, 08:40 AM
 
3,154 posts, read 3,062,729 times
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Quote:
Originally Posted by GraduatewithDebt View Post
Yes, I agree it is a big gamble. There is a link on the main economics page here for an article from US News detailing how a lot of students are rolling the dice on this same strategy. Take out as much student loan debt as possible, and then try to get it forgiven under this program. A lot of people in my graduate program are doing this too.
This is scary - the sense of security because everyone is doing it. In 2005 everyone was buying overpriced houses, but that hardly worked out for them. All of these people will regret this, and there will be a bailout for the banks, but not the students. That's how it works. These students would be better off buying lottery tickets than hoping for some kind of govt forgiveness.
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Old 01-06-2015, 09:13 AM
 
3,911 posts, read 2,748,478 times
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Quote:
Originally Posted by Mnseca View Post
This is scary - the sense of security because everyone is doing it. In 2005 everyone was buying overpriced houses, but that hardly worked out for them. All of these people will regret this, and there will be a bailout for the banks, but not the students. That's how it works. These students would be better off buying lottery tickets than hoping for some kind of govt forgiveness.
And everyone is NOT doing it. Your "game" is insulting to everyone who has paid for their college expenses and paid back loans. Instead of taking advice from unemployed, long term students with ridiculous amounts of debt, OP should surround himself with successful working people who have moved out of the college phase and into real life.

Not working through school means you're missing years of building experience and contacts for future opportunities. Many students work through school to keep their debt as low as possible. My daughter and niece went to grad school while working full time professional jobs. It's not impossible.
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Old 01-06-2015, 10:40 AM
 
906 posts, read 1,278,857 times
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Under no circumstance should you take out more debt with the hopes of qualifying for debt forgiveness. As other members have noted, the requirements to stay enrolled in this program are very strict and with a high risk that you would be excluded at some point over the 10 year repayment period. You would then be stuck paying back even more debt over most of your working career.

In addition, the student loan debt you incur cannot be discharged in bankruptcy, so if you continue to have financial hardship and do not qualify for loan forgiveness programs, your wages will be garnished to pay this loan. The only way to truly get rid of student loan debt is to either pay it or die.

What type of degree do you have that has prevented you from getting a job? Have you considered working in areas other than your formal training? Do not go back to school to get more degrees. You are wasting your time and money. You need to be more flexible in the types of jobs you would consider and you may need to considering moving to a different area of the country (or an underserved area in your field).
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Old 01-06-2015, 12:39 PM
 
17 posts, read 18,431 times
Reputation: 19
Quote:
Originally Posted by iowa4430 View Post
Wait, are you working at all? Nights, weekends? Tending bar etc?

I ask because there's no reason you shouldn't be. My daughter is taking a full load, pre-med, playing college basketball AND working (A couple evenings per week when it isn't competing with basketball) bartending and making decent cash.
Yes, I am working. TA for 20 hours per week, restaurant job on the weekends, and then I substitute teach 1-2 days per week depending on my class schedule. I have to work considering my school just raised parking by $100 each semester, and the fees increased by $300 per semester, along with the usual 10-15% tuition hike every year
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Old 01-06-2015, 12:57 PM
 
Location: Massachusetts
9,611 posts, read 10,329,853 times
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Quote:
Originally Posted by KaraG View Post
Not working through school means you're missing years of building experience and contacts for future opportunities. Many students work through school to keep their debt as low as possible. My daughter and niece went to grad school while working full time professional jobs. It's not impossible.
This.


Getting a grad school degree without a job in that field will do more harm than good. A prospective employer will look at you as having the education to demand higher pay, but the lack of experience to want to hire you for it.

We've had bad luck with 0 experience MS and PhD people.


What sort of undergrad and grad degree are you working on here that going to run your debt up past $100K.
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