Comments on: Is That Degree Worth the Student Loan Debt?

By: bubbaRay

bubbaRay — Wed, 19 Aug 2009 09:34:17 +0000

i totally agree with most of the posts. i went to a Big 12 (at the time SWC) school for a few years and tried to pay as i went, it didnt work. so i went to a local community college and took classes at night and worked at a feed lot during the day and that didnt work either. so i went to work for a couple of years busting cattle and realizing i was a worse cowboy than a student. at the age of 26 i was able to fill out my student loan applications by myself which allowed me not to include my parents income so i took the plunge and went to a local private university. i took out loans and received grants that paid both my tuition and expenses (including dorm) for $26k yearly. upon graduation three years later i was near $70k in debt and went to law school. three years at a top tier 1 law school and expenses put me in debt combined with my undergrad of nearly $300,000. straight out of school i recieved a job with a top 8 law firm thanks to the opportunity to be on law review and not try to hassle with making a dollar. i have now been out of school for 9 years and only have a few more months to repay my student loans, if it wasnt for those loans i would still be living in a podunk west texas cow town, would not have the opportunity for my children to go to the best private schools in new york, and would more than likely not be stuck here at the atlanta airport waiting for a flight. why? i could never have afforded to take the kids to disney land at the last second just because we saw a tv commercial.

By: Mat

Mat — Fri, 01 May 2009 21:16:06 +0000

Where are you investing at a 6.5% interest rate in today’s economy?

By: Annie Tran

Annie Tran — Thu, 23 Apr 2009 23:45:59 +0000

I got a $40K loan to go to ASU for my MBA. I rationalized the bill by reminding myself that I went to the University of San Diego on scholarship (valued at $90K). I have yet to see any big payout with my MBA (graduated 2008), but then again I’m only 26, with 5 years work experience. An MBA is just a piece of paper until you can attach significant experience with it. I asked my bosses if there’s any increases or bonuses for getting my MBA and they said no.
Experience + Degree is the best formula. My parents don’t have degrees and they worried over the years about layoffs and not being able to find work due to their lack of education. I have 2 degrees, but not enough experience. The MBA is my ticket to management. There have been instances where I work that people were looked over for mgmt positions because they didn’t have an MBA, and then there are some people who were told to go get their MBA’s so that they would be qualified if they applied for management positions.
I really hope the MBA will pay off in the end. And if it doesn’t, there is still some intrinsic value for knowing I completed it.

By: Jessie

Jessie — Mon, 06 Apr 2009 01:17:18 +0000

I pulled 20K in student loans for my BFA and had to work full time while going to school full time, but I think it was definitely worth it in my industry. But if I had known better I would’ve gone to a public school. My colleagues graduated from state universities and I from a private school but we make the same money, LOL. We have two new college graduates as non-paid interns at work, and I feel bad for them, because they went to private art schools for approximately 10K + per year. More and more I think the best bailout the gov’t can offer is the forbearance on student loans… Wishful thinking!

By: Amy

Amy — Fri, 03 Apr 2009 17:04:00 +0000

I’m going to have to disagree with a lot of the comments here. Most people responding state that a degree is a necessity nowadays. I think that it may be a necessity for some areas but for other areas it’s not. I work in IT and I know plenty of people who don’t have degrees but have certifications and experience instead. These people are making $75,000 and up. They are in the role of managers and other leardership which “requires” a degree. Often times I’ve learned that when a job says it “requires” a degree it really means that it requires experience in the industry at least equal to the degree.

As for me personally, I don’t have a bachelor’s degree and make a nice wage. I do, however, have certifications and nearly 10 years in the industry. That doesn’t mean that going back to school is a bad idea (in fact I’m in school part time now and will be finishing my bachelor’s this fall), I just think it’s not the necessity many of the commentor’s claim it is.

I also don’t think it’s necessary to go into debt to get through school. I started at a community college to save money on my core classes and then switched to a 4 year university. I also worked at least one job (sometimes two) while going to school full time so I could pay for it out of pocket. For finishing up my degree, my current employer (I’m now full time) pays for half the tuition and I pay the other half out of my pocket. Sure, I’ve had to cut back in other areas but I’m willing to make that sacrifice. No debt needed.

By: Money Under 30

Money Under 30 — Fri, 03 Apr 2009 16:09:47 +0000

A lot of great comments, though I realize I need to clarify a few things!

I was thinking mostly about graduate school when I wrote this post, although as RM just pointed out it IS possible to be successful without a degree, depending on other training/experience. That said, $75k was just an example. I was thinking of Law/Business/Medical school and for those the amount could be even higher. Certainly an undergrad education at a public school can be achieved for much less.

Now, I am NOT suggesting in this post people automatically rule out school and save money instead—I offered a formula for estimating the return going to school could get you. For many, the return in increased lifetime earnings will BLOW AWAY the cost of the student loans, so you should certainly go for it!

By: RM

RM — Fri, 03 Apr 2009 14:32:36 +0000

While I can see why most of you agree with education, some others are quite successful without a degree. Some say it is luck and others say it is the product of hard work and determination. With a competitive job market, often times experience out weighs a degree with no experience. So, for others reading this, like myself, school is not the one all be all. You can be successful and SAVE money without a degree. It really depends on your industry you are looking to pursue and the work ethic you plan to build.

By: Susan

Susan — Fri, 03 Apr 2009 04:11:37 +0000

I usually agree with most of what David says. However, this time I have to, for the most part, disagree.

Having a degree at all is now a necessity for one to attempt to keep pace with the cost of living. Having an additional degree may become the norm in ten to twenty years, if not sooner. I have seen this progression (of the degree norms changing in the workplace) already in my lifetime and expect to see it again.

Having an additional degree can well be worth the money, as it offers greater options and flexibility in where one can work, thereby increasing the potential for earning and increasing earning itself over time. Simply put, if you cannot find work or do not have the option to leave for a higher paying job, you may find yourself in a tight spot later.

Any student should look at the earning potential of a desired degree before pursuing it. However, if you look at the numbers and still need it to do what you want in life, it’s worth it.

I attended university at ages 27-30 as a transfer student, borrowing approximately $20K for the first two years (in addition to working). In the third year, I was awarded enough scholarships to live for that third year and pay back half my loans from the previous two years, leaving me with only $10K in student loan debt upon graduation. This was critical due to the low earning potential of my career. However, I do what I love and could not have progressed in my career without the degree.

Every student should educate himself about the specifics of his student loans (for instance, to know he should pay off unsubsidized federal loans before paying off subsidized loans), the types of loans available, the lenders from which you may choose, and research and apply for scholarships.

I am a huge advocate of education because I see the limitations of not having a necessary degree. Students should seek out all sources of funding, be well informed about borrowing, and not enter into any degree program haphazardly.

By: Lakita

Lakita — Thu, 02 Apr 2009 19:53:18 +0000

I believe this statement is flawed : “If you invested $522 for 30 years and earned an average of just 6.5% interest ”

Without a degree you may not have $522 to invest

Of course there are plenty of folks that are very wealthy by starting a business or marketing a new invention without a degree but of course that isn’t the norm.

By: sara l

sara l — Thu, 02 Apr 2009 18:48:36 +0000

One more thing missing from the equation- can you get the job you WANT without a degree. I went to grad school because I knew it was necessary for the positions I wanted to have later in life. I don’t love the payments, but don’t regret the 27K I took out for grad school.

Some other things to think about:
Will you qualify for federal assistance? (Pell grants, etc)
Will your employer help pay for you to increase your skills?
Will your life be more complicated (kids, more work responsibilities, etc)later on?
Can you work while going through a program or will you need to take 1-2 years off of work?
Does prestige matter in your area or can you go to a state school that is less expensive?