How Big Is Your Student Debt?

*Sunny* · 06-07-2009, 09:07 AM

I'm trying to find some hope out there that other people have this much debt and are able to pay it off...and still have something resembling a life!

How much student debt do you have/Did you have?

How long do you think it will take/How long did it take for you to pay it off?

How much did you pay a month?

What types of loans did you get?

What type of career did you choose?

Did you go on to a graduate program/medical program?

dragon lady · 06-07-2009, 09:45 AM

I don't have any debt because my parents have paid for everything, but I know a ton of people with a ton of debt. I know one girl who went to an expensive private college with no scholarship and then went on to do her MA abroad. She has about $150,000 in debt and she's only making about $45,000 a year at this point. She lives alone and buys a lot of stuff, so I imagine she's going to be in debt for a loooong time. I wouldn't recommend going down that route.

*Sunny* · 06-07-2009, 09:57 AM

Thanks for your response!

Both my undergrad school and my vet school are public colleges. Not planning on studying abroad (although I would have LOVED to!). So I'm not going down that route. I currently owe my parents roughly $10,000 and while they would love to lend me money for the rest of my education, they have three children total in college and it's just not a possibility.

Dragonlady, do you know of any success stories among you friends? Anybody who has a solid plan for paying off their debt?

under_my_amberella · 06-07-2009, 10:37 AM

I have 30,000 in student loans. But its the only debt I have and the interest is reasonable. I have been advised to pay it off as slowly as possible, and invest any extra money I have. I pay $500 per month toward it which is totally affordable to me. I am an economist with the government.

*Sunny* · 06-07-2009, 10:46 AM

Dragon lady-- Wow! That is a success story. Yes, I am lucky that currently I *only* owe ten grand and that it's all interest free to my parents, but I still have two more years of undergrad plus vet school to go...I do work and all of that money, unfortunetly, will go to rent, groceries, gas, and books. I'm planning on taking out loans only for tuition and am applying to scholarships. Even with careful planning and saving I'm still looking at a lot of debt but if he can get through grad school (and have savings!) then so can I!

Undermyamberella--$30,000 isn't that bad at all. I've always heard that you are supposed to pay off your student loans as quickly as possible to accrue less interest. May I ask who advised you to pay it off slowly and invest extra money?

under_my_amberella · 06-07-2009, 11:31 AM

Its called leveraging. Let's say the interest on your student loan is 4%. Also say that you could invest your money and get a return of 6%.

Ok, so after paying all your bills and the minimum on your student loans and everything else, you have an extra $500 left over. You can either put it toward your student loan, and save 4% or you could invest it, and make 6%. In this case, putting it on your student loan will effectively cost you 2% (6% minus 2%) in opportunity cost.

Of course, you also have to take into account risk (as the recent economic crisis has demonstrated, investments are never guaranteed) as well as the peace of mind that comes with having completely paid off debts.

No, my 30,000 isn't bad. But I went to school in Canada, and in the province with the cheapest tuition. I was working full time but didn't speak the language and was working for minimum wage a lot of the time. I also received funding to do my grad studies. I have no regrets and view my student loans positively.

under_my_amberella · 06-07-2009, 11:32 AM

Oh and to answer your question, it was my financial advisor who advised that.

*Sunny* · 06-07-2009, 11:36 AM

I never thought about it that way. I suppose it all depends on how much your %interest is on your student loans and how much you could expect on an investment.

I'm glad that you view your student loans in a positive light---I'm trying to view them as a stepping stone to a better future but I see the dollar amount and it scares me!

pinkelephant · 06-07-2009, 11:41 AM

Quote:

Originally Posted by under_my_amberella

Its called leveraging. Let's say the interest on your student loan is 4%. Also say that you could invest your money and get a return of 6%.

Ok, so after paying all your bills and the minimum on your student loans and everything else, you have an extra $500 left over. You can either put it toward your student loan, and save 4% or you could invest it, and make 6%. In this case, putting it on your student loan will effectively cost you 2% (6% minus 2%) in opportunity cost.

Of course, you also have to take into account risk (as the recent economic crisis has demonstrated, investments are never guaranteed) as well as the peace of mind that comes with having completely paid off debts.

No, my 30,000 isn't bad. But I went to school in Canada, and in the province with the cheapest tuition. I was working full time but didn't speak the language and was working for minimum wage a lot of the time. I also received funding to do my grad studies. I have no regrets and view my student loans positively.

which province is that? lol. i must mooove!

i'm 20k in debt. i'm only half way done... so i guess when i'm done, i'll be *40k in debt. mmm yay. i think it'll be a life time. haha... no, i'm sure it'll be fine. i chosed chemistry, so grad school is a given.

Night Pumpkin · 06-07-2009, 11:43 AM

I graduated with $2,000 in debt.

06-07-2009, 09:07 AM	#1
Sunny Offline Bronze Member Join Date: Mar 2009 Location: America Gender: Female Age: 21 Posts: 227	How Big Is Your Student Debt? I'm trying to find some hope out there that other people have this much debt and are able to pay it off...and still have something resembling a life! How much student debt do you have/Did you have? How long do you think it will take/How long did it take for you to pay it off? How much did you pay a month? What types of loans did you get? What type of career did you choose? Did you go on to a graduate program/medical program? __________________ Handle every stressful situation in life like a dog would: If you can't play with it or eat it, just pee on it and walk away.

06-07-2009, 09:57 AM	#3
Sunny Offline Bronze Member Join Date: Mar 2009 Location: America Gender: Female Age: 21 Posts: 227	Thanks for your response! Both my undergrad school and my vet school are public colleges. Not planning on studying abroad (although I would have LOVED to!). So I'm not going down that route. I currently owe my parents roughly $10,000 and while they would love to lend me money for the rest of my education, they have three children total in college and it's just not a possibility. Dragonlady, do you know of any success stories among you friends? Anybody who has a solid plan for paying off their debt? __________________ Handle every stressful situation in life like a dog would: If you can't play with it or eat it, just pee on it and walk away.

06-07-2009, 10:46 AM	#5
Sunny Offline Bronze Member Join Date: Mar 2009 Location: America Gender: Female Age: 21 Posts: 227	Dragon lady-- Wow! That is a success story. Yes, I am lucky that currently I only owe ten grand and that it's all interest free to my parents, but I still have two more years of undergrad plus vet school to go...I do work and all of that money, unfortunetly, will go to rent, groceries, gas, and books. I'm planning on taking out loans only for tuition and am applying to scholarships. Even with careful planning and saving I'm still looking at a lot of debt but if he can get through grad school (and have savings!) then so can I! Undermyamberella--$30,000 isn't that bad at all. I've always heard that you are supposed to pay off your student loans as quickly as possible to accrue less interest. May I ask who advised you to pay it off slowly and invest extra money? __________________ Handle every stressful situation in life like a dog would: If you can't play with it or eat it, just pee on it and walk away.

06-07-2009, 11:31 AM	#6
under_my_amberella Offline Platinum Member Join Date: Sep 2006 Gender: Female Age: 28 Posts: 5,035	Its called leveraging. Let's say the interest on your student loan is 4%. Also say that you could invest your money and get a return of 6%. Ok, so after paying all your bills and the minimum on your student loans and everything else, you have an extra $500 left over. You can either put it toward your student loan, and save 4% or you could invest it, and make 6%. In this case, putting it on your student loan will effectively cost you 2% (6% minus 2%) in opportunity cost. Of course, you also have to take into account risk (as the recent economic crisis has demonstrated, investments are never guaranteed) as well as the peace of mind that comes with having completely paid off debts. No, my 30,000 isn't bad. But I went to school in Canada, and in the province with the cheapest tuition. I was working full time but didn't speak the language and was working for minimum wage a lot of the time. I also received funding to do my grad studies. I have no regrets and view my student loans positively. Last edited by under_my_amberella; 06-07-2009 at 11:33 AM. Reason: 6 minus 4 obviously.. im a retard

06-07-2009, 11:36 AM	#8
Sunny Offline Bronze Member Join Date: Mar 2009 Location: America Gender: Female Age: 21 Posts: 227	I never thought about it that way. I suppose it all depends on how much your %interest is on your student loans and how much you could expect on an investment. I'm glad that you view your student loans in a positive light---I'm trying to view them as a stepping stone to a better future but I see the dollar amount and it scares me! __________________ Handle every stressful situation in life like a dog would: If you can't play with it or eat it, just pee on it and walk away.

06-07-2009, 09:45 AM	#2
dragon lady Offline Platinum Member Join Date: Jan 2008 Gender: Female Age: 23 Posts: 2,615	I don't have any debt because my parents have paid for everything, but I know a ton of people with a ton of debt. I know one girl who went to an expensive private college with no scholarship and then went on to do her MA abroad. She has about $150,000 in debt and she's only making about $45,000 a year at this point. She lives alone and buys a lot of stuff, so I imagine she's going to be in debt for a loooong time. I wouldn't recommend going down that route.

06-07-2009, 10:37 AM	#4
under_my_amberella Offline Platinum Member Join Date: Sep 2006 Gender: Female Age: 28 Posts: 5,035	I have 30,000 in student loans. But its the only debt I have and the interest is reasonable. I have been advised to pay it off as slowly as possible, and invest any extra money I have. I pay $500 per month toward it which is totally affordable to me. I am an economist with the government.

06-07-2009, 11:32 AM	#7
under_my_amberella Offline Platinum Member Join Date: Sep 2006 Gender: Female Age: 28 Posts: 5,035	Oh and to answer your question, it was my financial advisor who advised that.

06-07-2009, 11:43 AM	#10
Night Pumpkin Offline Silver Member Join Date: Nov 2006 Posts: 654	I graduated with $2,000 in debt.