College loans. Are they worth it?

No, it is definitely not worth it to go 200K in debt to get a bachelor's degree in sociology. Why wouldn't she just go to a state school for undergrad and still get a good degree without taking out nearly that much debt?

There really isn't a right answer for how much debt is worth it. It depends on what grad school, what degree, what you want to do with the degree, the job market for people with that degree, etc.

I don't think enough people take that into account when deciding where to go, though.

From some numbers I looked up, the median debt for a bachelors in 07-08 was 20k. However, about 33% of students graduated with no debt at all. I think if at all possible, people should try to minimize debt for a bachelors. I think that sometimes students get too caught up in going to a private four year school rather than considering taking community college courses for gen ed credits or going to a state school for a year or two. The loans can seem like an abstract concept until the payments actually come due.

I personally think that even counting the cost of a master's I wouldn't want to owe much more than 20-30k. That may be because I am entering a very low paying job field.

Ok I have another question. On average how much interest does a loan from the federal government usually charge? I haven't had to take any out yet but for grad school it looks like I will have to. Would taking out 9k a semester for Physical therapy school be worth it?

Chase08 wrote:

For you Grad students out there do you believe the indebtedness is worth it?

I have 3 graduate degrees, but I would *never* have done them if I had to take out loans. Two were funded by my employers, since I did them part-time while working full-time (MS Engineering, and MBA). I did the the third full-time (PhD Engineering) but it was funded by a grant from a foundation and it covered my tuition, fees, and a stipend.

Going $200K in debt for an undergraduate liberal arts degree is nuts.

200k is something that makes sense only for med school and (maybe) a top-tier law school. That woman with the sociology degree is really screwed, because you can't declare bankruptcy and get out of student loans. The average sociology major makes something like 30k/yr, which means she'll be paying off those loans the rest of her life.

I think I'm pretty typical, graduating with about 18k in loans at 6%. Assuming I can find a job quickly it shouldn't be a problem.

Going to a state school was probably one of the better decisions in my life. No way paying +40k per year for a non-Ivy/Stanford type is worth it, unless your parents are rich and can afford it.

I have a friend who just graduated with a Poli Sci BA and 130K in loans. She's going to law school now(not a T14), so add another 100-120k on that. Her estimated time to pay off her undergrad loans before deferment was 2040. Fun like for her.

So go to a public state university, if your in-state sucks, go out of state and the price still isn't as rough as private.

Federal Stafford loans for grad school are 6.8%. What you have to look at is how much you will likely make after graduating, and how long you would like to be in debt. It's doesn't bother some people to be in debt; I hate it. Also, I'm fairly certain with something like physical therapy you're going to need to get a graduate degree at some time or another to advance. If that's the case it would probably be better to get it sooner rather than later.

I graduated with 14 000 in debt and paying it off sucked. It took about two years of hard work and penny pinching. If I did it again, I wouldn't take out any loans I'd just take a semester or a year off and earn the money first. I would have cared more about school and been more careful with my money.

I have no idea how someone can spend $200 000 in four years. That's just insane and will ruin the next decade of her life.

Decade? Interest on $200K of debt would be around $10K a year. She's not digging out of that one with a bachelor's in anything unless she lives to be 100.

If you're going to borrow over $30K for a degree, it ought to be in something lucrative and marketable, otherwise it is a very poor investment. $8K at a state school is the way to go if you're still feeling your way around.

Mine was! I used the funds to make a Porno Movie and although it did not pay much initially, I did end up making a bundle over the full-term of the loan!!

The answer is hell no.

It depends.

Okay let me say a little more than hell no. If you don't mind becoming pasty white, potentially or even probably obese, stressed to the max, miserable, and as far from a runner as life could possibly take you, then, by all means, take out 200K in debt for any degree.

not a runner anymore wrote:

Okay let me say a little more than hell no. If you don't mind becoming pasty white, potentially or even probably obese, stressed to the max, miserable, and as far from a runner as life could possibly take you, then, by all means, take out 200K in debt for any degree.

If you are just taking the initial situation posted then I agree--hell no. I was answering the more inclusive question in the subject line.

I wasn't specifically trying to disagree with you. Everyone is entitled to their opinion. I think you have to search your soul, regardless of the degree. If you take out 200K for a medical degree, then obviously, if you are planning to live a life dedicated to medicine *and not much else including your family and/or fitness*, you can and most likely will earn the money to pay back the debt. But taking on significant college loan debt will limit your other life options.

I have 80K in debt from law school. I graduated at the top of my class from a high ranked state school and received the best offers out of law school. But I hate that life. Hate it. It was a bad choice, for me. But I'm a woman and women can get away a little easier with finding some way to earn money on a little more flexible route, which I have done. But finding something flexible that also pays decent money isn't easy and takes determination to find.

If I could give back my loans and change my lifestyle a little, even losing the education that I'm thankful to have (think it's benefited me in many ways even though I'm not practicing), then I would.

I'm now involved in real estate and some part-time legal work and that works for me. But again IF I had gone to med school, gees, I can't even imagine that kind of debt. I would hate that life. And I have several friends who are doctors. Not kidding--they awaken at least by 6 p.m. and are still doing rounds and/or surgery sometimes past 10 p.m. Don't underestimate the power of LONG hours at these supposedly awesome careers (law, medicine) to ruin your health, life and happiness--at least until you escape, which some manage and others do not.

oops meant to say 6 a.m. 6 p.m. would be so bad!

A lot of other posters have made good points, I just had one extra. Be really careful about paying back your loans. I don't know if it will be different now that the federal government is doing student loans, but repayment terms have hurt a lot of people. Not just interest rates. For instance, paying the minimum payment or deferring and having the total amount you owe go up, missing a payment and getting charged late fees or having your debt turned over to a collection agency that charges a large fee, etc.

Also, as far as undergrad, in almost all fields no one gives a rat's a$$ were you went, as long as you went to a decent school (i.e. not ITT Tech or something). So go to a state school if you are paying for it. Most states have some excellent schools that are very affordable.

Student loans are no joke. They have helped plenty of people, but have also REALLY hurt a lot of people. Be very careful.

For an undergrad degree I think the answer is yes, if you have post-college plans that will allow you pay off the loan. But I would never advise attending grad school without also securing a research job or similar that would allow you to pay as you go. You are already passing up on years of job earnings in order to attend grad school - no reason to compound the problem by taking out additional loans. If you plan things right you can even have your undergrad loans paid off by the time you finish grad school, w/o ever having to pay interest on those loans.

If I could do it again, I wouldn't have worked summers but gone to school instead. With my degree I started off making 4x what I was without it. That is enough money to pay back any student loans I would have needed to take out. And I would have been 1 year farther along my career with would be worth a couple thousand a year that will get compounded with every raise for the next 40 years......

don't do it wrote:

I graduated with 14 000 in debt and paying it off sucked. It took about two years of hard work and penny pinching. If I did it again, I wouldn't take out any loans I'd just take a semester or a year off and earn the money first. I would have cared more about school and been more careful with my money.

I have no idea how someone can spend $200 000 in four years. That's just insane and will ruin the next decade of her life.