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Higher Education Debt: Why I Decided to Incur it | |
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| | | -- By CharlesRoper - 17 Feb 2016
The Problem | |
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< | The usual notion regarding higher education debt is that is an investment in one’s future and that any debt incurred achieving higher education is good debt. This proposition is most evident by the governmental guarantees that ensure the obscene tuition costs will be funded. The premise behind good debt is that it is an investment and although you may owe money, at the end of the day it is really putting money back in your pocket, usually through higher returns. | >
> | The usual notion regarding higher education debt is that is an investment in one’s future and that any debt incurred achieving higher education is good debt. This proposition is most evident by the governmental guarantees that ensure the obscene tuition costs will be funded. The premise behind good debt is that it is an investment and although you may owe money, at the end of the day it is really putting money back in your pocket, usually through higher returns. | | | | |
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< | While attending undergraduate university the typical student incurs a debt of nearly 30,000 dollars. See Average Student Loan Debt Approaches $30,000. If a student decides to continue their education into graduate school, one sees a sharp spike in tuition. With one quarter facing “good” debt over 100,000 dollars and one out of ten incurring over 150,000 dollars; all in addition to their undergraduate loans, which are still incurring interest. See How Much Loan Debt is From Grad Students? More Than You Think. | >
> | While attending undergraduate university the typical student incurs a debt of nearly 30,000 dollars. See Average Student Loan Debt Approaches $30,000. If a student decides to continue their education into graduate school, one sees a sharp spike in tuition. With one quarter facing “good” debt over 100,000 dollars and one out of ten incurring over 150,000 dollars; all in addition to their undergraduate loans, which are still incurring interest. See How Much Loan Debt is From Grad Students? More Than You Think. | | | The incursion of higher education debt is often seen as commonplace and one seldom envisions the negative effects this debt may have. Since graduates are crippled with student loans; even if they are able to secure a job, a large percentage of their income goes directly to the monthly loan payments. The loan payments on top of rent and other living expenses and necessities prevent recent graduates the ability to form any type of savings. The lack of savings kills the economy. Instead of being able to use the potential increase in salary from the “good” debt of student loans to further invest in the economy, either through mortgages and home improvements or savvy stock market investments, the majority is forced to use any gain in paying off the student debt. With the large debt looming over recent graduates, many are desperate to find any job that will provide them with the ability to make the monthly payments. Upon successfully finding a job many soon realize that their debt ball and chains them to the job, through the ever looming monthly payments. | | | Law School | |
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< | During my 1L year after being consistently lectured that the only thing that matters are grades, specifically your 1L grades, I chose not to work and took on loans to fully cover tuition so I could fully focus on the curriculum. As for my 1L summer, the law school advisors all stated that you may work anywhere as long as it is within law. Granted depending on where one wants to end up after law school this may have more or less weight; however, I do want to be practicing law and knew that an internship within the field of law would be a highly valuable experience, even if not seen via a paycheck. I ended up applying to a variety of places but only secured offers for the public sector, which is still highly rewarding work; it just does not help regarding covering tuition. In fact, GSF for my 1L summer is not even covering the full cost of my rent for the summer, not including travel and food. In order to lessen the burden my 2L year, I am going to be working during the school year. While this in no way is going to be making a dent in my tuition cost/loans, it will hopefully aid in covering food and basic living necessities. | >
> | During my 1L year after being consistently lectured that the only thing that matters are grades, specifically your 1L grades, I chose not to work and took on loans to fully cover tuition so I could fully focus on the curriculum. As for my 1L summer, the law school advisors all stated that you may work anywhere as long as it is within law. Granted depending on where one wants to end up after law school this may have more or less weight; however, I do want to be practicing law and knew that an internship within the field of law would be a highly valuable experience, even if not seen via a paycheck. I ended up applying to a variety of places but only secured offers for the public sector; which is still highly rewarding work, it just does not help regarding covering tuition. In fact, GSF for my 1L summer is not even covering the full cost of my rent for the summer, not including travel and food. In order to lessen the burden my 2L year, I am going to be working during the school year. While this in no way is going to be making a dent in my tuition cost/loans, it will hopefully aid in covering food and basic living necessities. | | |
Personal Results | |
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< | While having a debt larger than the average American spends on a house is daunting and will greatly affect my ability to invest and make large financial decisions years after graduation, I believe I am satisfied with the path I have chosen. I could have slightly reduced my higher education if I took a few years off before law school. However, I knew the practice of law is what I wanted to pursue and I did not want to give up a few years of my life, not practicing law, to reduce my higher education debt by a fraction. | >
> | While having a debt larger than the average American spends on a house is daunting and will greatly affect my ability to invest and make large financial decisions years after graduation, I believe I am satisfied with the path I have chosen. I could have slightly reduced my higher education debt if I took a few years off before law school. However, I knew the practice of law is what I wanted to pursue and I did not want to give up a few years of my life, not practicing law, to reduce my higher education debt by a fraction. | | | | | |
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