Student Loans Regret?

[moderndarwin]

I whole heartily regret it. My biggest regret in my entire life was college.

Graduated from Drexel University with a Business degree...minored in finance and accounting...landed the job i wanted as a financial analyst at NASA. Still have 60k in debt im 26 years old and have already paid 25k. My loan payments are $1,100 a month....i make 75k a year...which with my loan payments basically is like making 40k.

You work your *** off at your job just to try to get your nose above the water line so you can breath some air. I am finally there but with the loan payments and rent i live off 1 paycheck a month...and thats not even counting car, cell phone, gas and other essentials. By the time i hit 80-90k i might be living like a normal person. I won't be "free" until im in my 40s.

That thought constantly weighs on me, it hampers everything in my life. I have second thoughts about getting into a relationship because i can't afford it...can't even think about if i knocked a girl up and had to pay for a kid....my life would be ruined. All i can take from it is i got got by the system.

I repped you but you are a dummy.

As a finance and accounting major (like me) you should know that cash flow >>>>>>> debt.

I'm 28, about 2 semesters away from finishing a Masters of Accountancy program and will graduate with over 80k of debt. It makes me sad too. I have a gf and the thought of us trying to start a life is exhausting to me. I don't want school to end almost. She's not even an American...so that's a whole lot more of a mess to deal with for me (hard for her to get a job right away etc etc).

You have 35k left in debt you are eligible for the 20 year maximum loan term. If you choose to go that route your monthly payment is ~$268 (if you borrowed at the 6.8% rate).

At your/our age it is much more important to have some money to save than to fully pay down debt. You are going to have debt. That's just a fact of life in America. If it isn't your student loan debt it'll be a mortgage, car, yacht etc. However, freeing up your cash flow for 3 years will change your life in such a positive way. In 3 to 5 years your salary will be so much higher (and likely also same for wtv girl you end up with).

Forget about the extra $$ you pay in debt. It is more than worth the freedom of mind to not have some huge chunk taken out at this age. My recommendation to you is to get the 20 year term and stay with it until you are 30. By that time you will have a ballin salary, can refinance, and just pay off the remaining debt very quickly. More importantly, from now till 30 you are freeing up a ton of cash flow.

I started a company with the extra cash flow from not having to pay so much to student loan debt. You should know that money earns money. If you don't think you can recoup your debt losses by leveraging the extra cash you have....then your finance and accounting background were just a waste of money =)

 

[jking0821]

I whole heartily regret it. My biggest regret in my entire life was college.

Graduated from Drexel University with a Business degree...minored in finance and accounting...landed the job i wanted as a financial analyst at NASA. Still have 60k in debt im 26 years old and have already paid 25k. My loan payments are $1,100 a month....i make 75k a year...which with my loan payments basically is like making 40k.

You work your *** off at your job just to try to get your nose above the water line so you can breath some air. I am finally there but with the loan payments and rent i live off 1 paycheck a month...and thats not even counting car, cell phone, gas and other essentials. By the time i hit 80-90k i might be living like a normal person. I won't be "free" until im in my 40s.

That thought constantly weighs on me, it hampers everything in my life. I have second thoughts about getting into a relationship because i can't afford it...can't even think about if i knocked a girl up and had to pay for a kid....my life would be ruined. All i can take from it is i got got by the system.

I repped you but you are a dummy.

As a finance and accounting major (like me) you should know that cash flow >>>>>>> debt.

I'm 28, about 2 semesters away from finishing a Masters of Accountancy program and will graduate with over 80k of debt. It makes me sad too. I have a gf and the thought of us trying to start a life is exhausting to me. I don't want school to end almost. She's not even an American...so that's a whole lot more of a mess to deal with for me (hard for her to get a job right away etc etc).

You have 35k left in debt you are eligible for the 20 year maximum loan term. If you choose to go that route your monthly payment is ~$268 (if you borrowed at the 6.8% rate).

At your/our age it is much more important to have some money to save than to fully pay down debt. You are going to have debt. That's just a fact of life in America. If it isn't your student loan debt it'll be a mortgage, car, yacht etc. However, freeing up your cash flow for 3 years will change your life in such a positive way. In 3 to 5 years your salary will be so much higher (and likely also same for wtv girl you end up with).

Forget about the extra $$ you pay in debt. It is more than worth the freedom of mind to not have some huge chunk taken out at this age. My recommendation to you is to get the 20 year term and stay with it until you are 30. By that time you will have a ballin salary, can refinance, and just pay off the remaining debt very quickly. More importantly, from now till 30 you are freeing up a ton of cash flow.

I started a company with the extra cash flow from not having to pay so much to student loan debt. You should know that money earns money. If you don't think you can recoup your debt losses by leveraging the extra cash you have....then your finance and accounting background were just a waste of money =)

I appreciate the info man i really do but my debt is in the 60k range and i have asked to refi with my credit union and they offered me 8% (this was about 8 months ago before i re-upped into the interest reduction plan). My current interest rates are lower...but on the rise...so i have that option hopefully when they pass that threshold or my credit gets better with making on time payments. I am actually able to save some money right now with my salary and all my expenses. It's not much but it something.

I also am in no hurry to actually pay off the debt because i do need the cash and as long as i can manage the payments and keep them low i need the tax relief right now too since i barely take any out of my pay check to maximize my take home pay. I am climbing out. I was miserable for about 3 years 21-24 were hard as hell. But after grinding the best i could at 26 im doing ok. Hopefully by 28 or 29 il be in the 90-100k range my payments will not go up too too much and i can start life planning.

And i completely agree with you i was so dumb. Thats why i regret it. But moms never went to college...dad wasn't there...mom was horrible with money and fafsa...and i was a young dumb kid who got into a good school who just wanted to leave my house and have a life by any means necessary. And then you get told "just take out a loan everyone does it and just pay it back when you get a job" not realizing what that really meant until i was a junior in college and actually had a finance course . And at the time sallie mae let me take out a 40k loan no cosigner...they have since done away with them. So i thought wow that was easy...just get through school graduate...pay it back its all good

 

[still itachi]

I don't know about all this talk about money making money.

Whether or not to pay off student loans or invest your money is largely a question of what particular interest rate you are paying.

If you are 6% or above, I'd say just pay the student loans.  That is a risk free 6% return on your money.

You could invest, but then you'd have to make 6% just to break even, while incurring the risk of investments not performing or underperforming.

Sure a good year might get you a 15% return (total 9%), but a bad year might give you a -5% return (total -11%).

Mind the interest rate.

 

[nazdrowie]

im sort of in a similar situation, i have money invested and last year markets were great but i also have a private loan with $36,000 at 4.2% adjustable interest rate...my current investment accounts stand at about $31,000

im trying to decide to start taking that investment money and using it towards that loan...ive discussed with my financial analyst/planner and he says its not a good idea since interest rates are low now and i can get a return in the markets...another planner said since the rate is adjustable with quite a bit left, its better to start taking very large chunks out of the principal, recommending about $1000 per month

...i think i'd feel better paying it down but iono...

 

 

[am1x90xnike]

Threads like this make me have mixed feelings.

On the one hand, I feel so behind, I'll be 26 when I graduate, no idea what I'm going to do for work, no savings and insane debt, three degrees though, so ill have value.


On the other hand, I feel like a lot of guys are exceptions to the rule, most people I talk to are 100+ deep and will have the same degrees I do and will be older.

Idk I'm in the qtr life crisis and need to get my head together. I need to stop being scared/lazy and more responsible so I can get some of my ideas out there.

 

[still itachi]

 
im sort of in a similar situation, i have money invested and last year markets were great but i also have a private loan with $36,000 at 4.2% adjustable interest rate...my current investment accounts stand at about $31,000

im trying to decide to start taking that investment money and using it towards that loan...ive discussed with my financial analyst/planner and he says its not a good idea since interest rates are low now and i can get a return in the markets...another planner said since the rate is adjustable with quite a bit left, its better to start taking very large chunks out of the principal, recommending about $1000 per month

...i think i'd feel better paying it down but iono...

 

I can't tell you what to do.  But i'll pose some questions for you to ask yourself.

We've had 5 straight years of bull market, how much more run do u think we have in us?

Market valuations are already above historical averages, how much further until its considered unsafely overvalued?

How are you going to feel if this is the peak, and next year the market, along with your portfolio, drops 20% ($6200) while you simultaneously accrue another 4.2% ($1302)  in debt from the interest.

Will you kick yourself for not having paid off those loans?

 

[krazy88s]

Just gave $1,100 to Sallie Mae.

*stares into the distance*

 

[Undefined]

Just gave $1,100 to Sallie Mae.

*stares into the distance*

 

 

[HankHill]

On the one hand, I feel so behind, I'll be 26 when I graduate, no idea what I'm going to do for work, no savings and insane debt, three degrees though, so ill have value.

Wasn't this in a Kanye song lol?

 

[blade br0wn]

My only financial regret from school is losing my full scholarship after my freshman year...

Came out of a 5-year engineering program with about $13K in debt...

Half of that is wiped out...

No plans on anymore schooling atm unless its paid for...

 

[krazy88s]

Just gave $1,100 to Sallie Mae.


*stares into the distance*

 

Exactly One step closer to done forever with it.

On the one hand, I feel so behind, I'll be 26 when I graduate, no idea what I'm going to do for work, no savings and insane debt, three degrees though, so ill have value.

Wasn't this in a Kanye song lol?

School Spirit skits on The College Dropout. His degrees will keep him warm

 

[am1x90xnike]

I mean ill be an atty after I graduate lol, but getting a job, going solo or working a non-legal job.

I want to go solo, but it's so risky.

 

[uptown4real]

View media item 972314

 

[thegreatone]

As a student in college, I got student loans, not a good choice, but at the time I had to in order to finish. I knew that if i stopped going I would never finished. When I graduated, I went back and got my masters, now I have to pay it back. My advice, only borrow what you need, do not get the max.

 

[biggie62]

I graduated with 50k in loans. I stayed at home and paid everything off before December of the same year that I graduated in May. It did help that I had lots of cash saved and was able to push everything towards the loans themselves. It was depressing as I would have bought a house by now with that money since with that plus my savings now I'd have a nice down payment for a multi-family. But hey you live and you learn. I honestly didn't know that I had so much in loans until I started to actually look at all my mail after graduation. I wish that I didn't lose my scholarship my first year as well as it cost me a lot. With that scholarship I would have 0 loans since it was for 18k per year on top of all the federal and state grants. But oh well, you live, learn, and make your mistakes.

Now that I'm in grad school I realized that I could get a great education in what I wanted my degree in from a state/city school. So I chose that route and it paid itself off so far.

 

[moonshoes08]

I always talk to the baby boomers and they talk about how sad we are as a cohort that we can't get out of our parents house or have a late start to life. What everyone fails to realize is that we (our cohort) is in an education bubble. Sure, they had the mortgage crisis.... but they had earning potential and could make money in just about any field. We get screwed from the moment we graduate from high school. 

Personally, I would advise someone not to go to school right out of high school. Work for a while, join the military, do whatever you need to do to find yourself. Once you do and you realize that education is a requirement to get there... then you go. If possible, stay at home start at a community college and transfer to a University to get your degree. Keep debt to a minimum/none at all. 

Your comments have all been very insightful. I have decided to scratch my admission to my current doctorate level program at 38k per year and sit out a year and go to a school that has only 10k per year in tuition. 

 

[flyny]

Anyone know any good companies to consolidate private loans with?

 

[nazdrowie]

wells fargo is the only one i can think of without any research...

also check into a credit union, heard they were getting in on consolidations as well

 

[imaginaryone]

Graduated in May from a private university (Syracuse University) with only 28k in debt. Considering that it was over 300k in tuition for 5 years plus going abroad one summer I have no regrets plus I graduated with a BS in Computer Science. I was in a rush to pay off my loans in a few years but i'm most likely going to pay my unsub loans first since those are the only ones gaining interest right now and its 6.8%, everything else is

 

[solewoman]

im currently at 40k also which is more than what i originally borrowed
i have been paying for 7 years and it hasnt touched the principal. Definitely a regret of mine but i couldnt have the job i have without the degree. thank Goodness for Obama's new SLRP for service members. Supposedly Government will pay some of interest and after 25 years if my loans arent paid off they are forgiven.

 

[Coromanti]

Yea...it's under 20k so not completely terrible but i sometimes wish i stayed in state.

 

[sundoobie]

You have 35k left in debt you are eligible for the 20 year maximum loan term. If you choose to go that route your monthly payment is ~$268 (if you borrowed at the 6.8% rate).

At your/our age it is much more important to have some money to save than to fully pay down debt. You are going to have debt. That's just a fact of life in America. If it isn't your student loan debt it'll be a mortgage, car, yacht etc. However, freeing up your cash flow for 3 years will change your life in such a positive way. In 3 to 5 years your salary will be so much higher (and likely also same for wtv girl you end up with).

Forget about the extra $$ you pay in debt. It is more than worth the freedom of mind to not have some huge chunk taken out at this age. My recommendation to you is to get the 20 year term and stay with it until you are 30. By that time you will have a ballin salary, can refinance, and just pay off the remaining debt very quickly. More importantly, from now till 30 you are freeing up a ton of cash flow.

I started a company with the extra cash flow from not having to pay so much to student loan debt. You should know that money earns money. If you don't think you can recoup your debt losses by leveraging the extra cash you have....then your finance and accounting background were just a waste of money =)

20 year loan for $35k at 6.8% = 267 monthly but you are paying over 29k in interest over that period. Not sure why one would take this route unless you really need that cash to live. Yes "cash is king" and all that but if your savings account is yielding 0.9% and you're paying 6.8% in interest, you're losing PERIOD. I see everyday people paying their minimum amounts on 20% apr Credit Cards and saving or spending that extra cash. How are you ever going to get out of debt with that strategy?

My strategy is to pay off your debt as fast as you can to minimize interest. It's almost pointless to save when you owe a ton of money. Investment rate of returns are so small these days it's almost pointless. I am not worried about cash cause with my excellent credit, I can easily go to any bank and take a personal loan/home equity loan, and get that cash whenever I want.

 

[fontaine]

20 year loan for $35k at 6.8% = 267 monthly but you are paying over 29k in interest over that period. Not sure why one would take this route unless you really need that cash to live. Yes "cash is king" and all that but if your savings account is yielding 0.9% and you're paying 6.8% in interest, you're losing PERIOD. I see everyday people paying their minimum amounts on 20% apr Credit Cards and saving or spending that extra cash. How are you ever going to get out of debt with that strategy?

My strategy is to pay off your debt as fast as you can to minimize interest. It's almost pointless to save when you owe a ton of money. Investment rate of returns are so small these days it's almost pointless. I am not worried about cash cause with my excellent credit, I can easily go to any bank and take a personal loan/home equity loan, and get that cash whenever I want.

this guy gets it.

30k?

You can knock that out in 7 years with a solid non crippling payment

 

[mojodmonky1]

This is why I started a college fund for my kid before I even met my wife or had thought of having children. Been saving for 5 years now with my first due on December 15th. I'll be pushing good grades and hopefully he or she will end up with an academic scholarship like I had. Then I can just give he/she the money to start adult life. I Ended up with a full academic scholarship, Definitely made starting life much easier.

I graduated with friends that were 75k+ in debt and now 8 years after college are just now as financially stable as I was in 2007. Glad my parents beat school into my head when I was young. I'm figuring I need to have at least 150k saved for college in 19 years. Hope this 529 performs well.

This is some responsible parenting right there. Man I wish I started saving for my kid's college fund that long ago.

I too was lucky enough to get a full academic scholarship coming out of HS. It was to a not so prestigious state school, but I figured that a free education was better move for me than taking on loans to get a degree from a better name school. Coming out of school with little debt (I was a dummy who screwed around and took 5 1/2 yrs to graduate so I did end up taking out a loan for that last year) was so much easier compared to some of my friends who were saddled with large student loan debt. I'd like to be able to provide the same sort of financial freedom to my daughter when she goes to school (assuming she's not like her pops and cant manage to score a scholarship). My little girl just turned one and we've put $20K into her 529 plan already. I too hope to have atleast $150K by the time she is ready for school. The way this education bubble is going though, $150K might only pay for 1 year of school. Crazy.

 

[ooiron manoo]

$75k annual salary and still scraping, that's crazy.

These guys are sharks. Telling people they should cut their phone lines and eat poorly to repay loans. Crazy.

Fortunate enough to have graduated with zero debt. Although my job doesn't pay well, IMO, it is stable has awesome benefits and has provided the foundation to invest in side ventures. Got to be grateful.

Money has never stopped me from pursuing a relationship though. Got to live life bros.