Officially student loan debt free

[seeth07]

I'll chime in with some advise as well because if anyone is still in college or about to reading this, its great advice.

I think if I were to do it again, I’d do it in the following:
- No govt loans. I had a payment that was less than the accrued interest. Makes zero sense. NOTHING WRONG WITH THESE LOANS, IN FACT THEY ARE THE BEST OPTION I THINK DUE TO THOSE LOW INTEREST RATES. WHAT IS BAD THOUGH IS FOLLOWING THEIR REPAYMENT WHICH YOU NOTE IN YOUR FINAL COMMENT WHICH IS GOOD. PAY THEM OFF AS FAST AS YOU CAN JUST LIKE ANY OTHER LOAN YOU HAVE.
- Private loans only. Interest is typically higher and they decline most younger folks who apply but there are some that will make it work. I DID TAKE ONE PRIVATE LOAN DUE TO BEING ABLE TO GET IT THROUGH MY GRANDMA AND HER FINANCIAL INVESTMENTS WITH THRIVENT. THIS WAS INDEED A FANTASTIC OPTION FOR ME AND WORKED OUT GREAT BUT DID PUT MY GRANDMA AT RISK. SO THANKFULLY SHE WAS WILLING.
- Cash flow as much as possible. I did this because I didn’t have a choice. I lost out on making friends and college parties because of it, but you gotta do what you gotta do. I SPENT MY FIRST YEAR WITH NO WORK AND ENJOYING COLLEGE. I'D DO THAT ALL OVER AGAIN. EASY CLASSES AND JUST ENJOY LIFE FOR A YEAR - YOU ONLY GET TO DO THIS ONCE. THEN BUCKLE DOWN AND FOCUS HARD FOR 3-4 YEARS WHICH SHOULD INCLUDE KEEPING A JOB TO HELP PAY YOUR WAY THROUGH LIVING EXPENSES AT A MINIMUM.
- Avoid parent plus loans. Dinner doesn’t taste the same when you owe your in-law. $&@#ing hate that.
- Scholarships. I failed this hard. Just too lazy. I had great grades and was a high school athlete. Pissed it all away. NEVER HURTS TO TRY AND GET THEM, ABSOLUTELY DON'T BE LAZY ABOUT THIS. ITS FREE MONEY.
- If you have to take the govt loan, do not do any of their repayment plans. That’s how bad situations get worse.

 

[Wyhunter]

Congratulations man! Its a great feeling and a huge weight lifted off your shoulders. I was lucky enough that trade school only cost 12k, I couldn't imagine the stress of 50k.

A lot of great points on the loan portion. I hope it reaches some of the younger audience in here.

 

[brymoore]

Actually wanted to expand on this now that I’ve had time to sit back and think about it. Maybe it’ll help someone.

I seldom recommend debt but for an 18 YO without a full ride and no good upbringing/savings would make it hard. Some often would suggest to wait a few years and work 40 hours for a few years before going, but I knew if I did that I’d never go to college.

-DO NOT MAKE THIS POLITICAL-

I think if I were to do it again, I’d do it in the following:
- No govt loans. I had a payment that was less than the accrued interest. Makes zero sense.
- Private loans only. Interest is typically higher and they decline most younger folks who apply but there are some that will make it work.
- Cash flow as much as possible. I did this because I didn’t have a choice. I lost out on making friends and college parties because of it, but you gotta do what you gotta do.
- Avoid parent plus loans. Dinner doesn’t taste the same when you owe your in-law. $&@#ing hate that.
- Scholarships. I failed this hard. Just too lazy. I had great grades and was a high school athlete. Pissed it all away.
- If you have to take the govt loan, do not do any of their repayment plans. That’s how bad situations get worse.

I appreciate the expansion of your thoughts.

The reason I asked the question is I see a lot of recommendations to kids that college is not worth the cost. My argument is always a worthwhile degree is worth the cost. I’m my wife and my case it was definitely worth the cost. Furthermore, my college degree got me jobs where my employer paid for my graduate degrees.

Counter argument, I do know a few people with degrees working construction or other similar jobs because of the pay is more than what they could earn with their degree.

 

[perma]

I appreciate the expansion of your thoughts.

The reason I asked the question is I see a lot of recommendations to kids that college is not worth the cost. My argument is always a worthwhile degree is worth the cost. I’m my wife and my case it was definitely worth the cost. Furthermore, my college degree got me jobs where my employer paid for my graduate degrees.

Counter argument, I do know a few people with degrees working construction or other similar jobs because of the pay is more than what they could earn with their degree.

I see college as an investment for the rest of your life. Trade school or uni. You dont need it, but I didn't know what I would do if I didn't have one.

 

[rjthehunter]

I'll have my student loans paid off before summer rolls around this year.

Definitely worth it for me.

I'd encourage anyone considering college to look at it as an investment. What's your projected pay after school? Is $20k+ in debt worth it?
Don't go for a degree that's going to earn you 30-40k a year. That's foolish.

As far as the government loans, I have my loans through the gov. and as long as you ignore their "suggestions" for repayment and you make your own plan, you can get a pretty good interest rate. I have everything on auto pay, but throw $1k-$5k at it as I'm able to to just erase it as fast as possible.

 

[brymoore]

Banks stopped lending on student loans after the Obama administration took over the student loan lending and stopped providing government guarantees to the banks.

 

[BackofBeyond]

Counter argument, I do know a few people with degrees working construction or other similar jobs because of the pay is more than what they could earn with their degree.

Counter counter argument. I worked in construction before getting my degree, then got a degree in construction, and now work in construction still.

Not really a counter.

Still think the degree is worth it. I could have gotten to where I am now the old fashioned way, but the degree cut the timeline significantly and opened up opportunities I never would have had.

 

[mtmuley]

Counter counter argument. I worked in construction before getting my degree, then got a degree in construction, and now work in construction still.

Not really a counter.

Still think the degree is worth it. I could have gotten to where I am now the old fashioned way, but the degree cut the timeline significantly and opened up opportunities I never would have had.

Why? What does a degree in "construction" give you over hands in building? My perspective is coming from high end residential if it makes a difference. mtmuley

 

[buckbull]

I highly recommend parents and college/high school age kids to spend some time on the bureau of labor statistics website. They have a fantastic reporting tool; query by profession, geographic location, industry type, etc. They also have data on projections of professions in the next 10 years, etc.

My son was interested in nuclear engineering but when we looked at the data it just didnt make sense. He is doing the chemical engineering route.

 

[BackofBeyond]

Why? What does a degree in "construction" give you over hands in building? My perspective is coming from high end residential if it makes a difference. mtmuley

It gave me the avenue to go from being a custom home builder to running hospitals, data centers, a high rise, and now a very large multi-family project. Before my degree I ran about $1M/year in work, now I push multiples of that in a month. My earning potential has also followed that path.

Like I said, I could have gotten to the same place without the degree, but the education and piece of paper sure cut down the time from A to B. It was well worth the time and money investment for me.

 

[perma]

I highly recommend parents and college/high school age kids to spend some time on the bureau of labor statistics website. They have a fantastic reporting tool; query by profession, geographic location, industry type, etc. They also have data on projections of professions in the next 10 years, etc.

My son was interested in nuclear engineering but when we looked at the data it just didnt make sense. He is doing the chemical engineering route.

This is where the rubber meets the road. Might be cool to be an artist until you figure out you won’t make much.

Enjoy your job, but make it make sense financially.

 

[Keep on]

Our oldest got a 1/2 tuition scholarship for academics and worked as an RA for 3 years, so between that and what we kicked in came out in really good shape. He should be paid off in the next year or two.
The youngest did 2 years commuting to the local Penn State campus and did 2 at main campus. He owes a little more, but studied finance, he's smart enough to understand interest and getting things paid down.
I tried to talk them both into a trade, but told them if they were going to college get a degree that rolled right into a job, one's an accountant and the other is a cost analyst.

 

[Nick87]

Congrats.

 

[rjthehunter]

It gave me the avenue to go from being a custom home builder to running hospitals, data centers, a high rise, and now a very large multi-family project. Before my degree I ran about $1M/year in work, now I push multiples of that in a month. My earning potential has also followed that path.

Like I said, I could have gotten to the same place without the degree, but the education and piece of paper sure cut down the time from A to B. It was well worth the time and money investment for me.

That's exactly what I did. Started in construction, masonry and concrete, and worked my way up. Went to school for construction management, and now am running more that $20mil in work currently.

Like you said, I could've gotten there without a degree, but now I'm 10 or more years ahead of someone who decided to try and work their way up(still not a guaranteed route either). I'll have a full head of gray hair by the time I'm 30 at this rate, but I'm compensated appropriately!

 

[Carl 9.3x62]

Actually wanted to expand on this now that I’ve had time to sit back and think about it. Maybe it’ll help someone.

I seldom recommend debt but for an 18 YO without a full ride and no good upbringing/savings would make it hard. Some often would suggest to wait a few years and work 40 hours for a few years before going, but I knew if I did that I’d never go to college.

-DO NOT MAKE THIS POLITICAL-

I think if I were to do it again, I’d do it in the following:
- No govt loans. I had a payment that was less than the accrued interest. Makes zero sense.
- Private loans only. Interest is typically higher and they decline most younger folks who apply but there are some that will make it work.
- Cash flow as much as possible. I did this because I didn’t have a choice. I lost out on making friends and college parties because of it, but you gotta do what you gotta do.
- Avoid parent plus loans. Dinner doesn’t taste the same when you owe your in-law. $&@#ing hate that.
- Scholarships. I failed this hard. Just too lazy. I had great grades and was a high school athlete. Pissed it all away.
- If you have to take the govt loan, do not do any of their repayment plans. That’s how bad situations get worse.

I'd add get married and have a kid while in college. The government threw money at us to go to school. Graduated with 0 debt.

 

[Forkyfinder]

I'll have my student loans paid off before summer rolls around this year.

Definitely worth it for me.

I'd encourage anyone considering college to look at it as an investment. What's your projected pay after school? Is $20k+ in debt worth it?
Don't go for a degree that's going to earn you 30-40k a year. That's foolish.

As far as the government loans, I have my loans through the gov. and as long as you ignore their "suggestions" for repayment and you make your own plan, you can get a pretty good interest rate. I have everything on auto pay, but throw $1k-$5k at it as I'm able to to just erase it as fast as possible.

This.

College is worth it if you choose something that will enable you a good path to paying it off and much more. Certainly, its not for everyone, but the previously mentioned bls stats can help "weigh" the value vs another path.

Seperately, anyone interested should look into university of Wyoming. It is consistently rated as a "best value" university. 12k for tuition annually non res undergrad - 8k for resident.

Out of state tuition isnt "cheap" but still cheaper than most places in state, including montana.

Congrats @perma it is a good feeling!

 

[WBouldin]

I think the trade schools are a great move if academics aren’t your thing. Huge shortage in most of the industries and it’s only going to get worse (better for those entering). I’m on the business side of the trades business and would encourage anybody interested to do that as you can make great money very quickly.

If going to college on loans, get a degree like a “trade” (accounting, engineering, etc.) that will directly lead one to high paying entry level jobs to pay those babies back quickly.

Lastly, find a school that offers programs you like at an affordable price. Too many spring for the mega schools for the experience or brand and pay a lot for it. @Big Fin and my alma mater, University of Nevada, is about as good a bang for your buck as you will find - even for out of state folks like myself.

 

[jryoung]

Paid mine off this week, just need ten more years for my wife's LOL. She's at 1.65% so no sense paying it off early, especially now.

Great feeling investing in yourself and making it work. If I had stuck with just my Poli Sci degree someone else would have paid for it, but getting an Accounting degree made me do it myself.....almost killed me, but I wouldn't know what work was like without billing almost 3000 hours in a year.

 

[VikingsGuy]

Actually wanted to expand on this now that I’ve had time to sit back and think about it. Maybe it’ll help someone.

I seldom recommend debt but for an 18 YO without a full ride and no good upbringing/savings would make it hard. Some often would suggest to wait a few years and work 40 hours for a few years before going, but I knew if I did that I’d never go to college.

-DO NOT MAKE THIS POLITICAL-

I think if I were to do it again, I’d do it in the following:
- No govt loans. I had a payment that was less than the accrued interest. Makes zero sense.
- Private loans only. Interest is typically higher and they decline most younger folks who apply but there are some that will make it work.
- Cash flow as much as possible. I did this because I didn’t have a choice. I lost out on making friends and college parties because of it, but you gotta do what you gotta do.
- Avoid parent plus loans. Dinner doesn’t taste the same when you owe your in-law. $&@#ing hate that.
- Scholarships. I failed this hard. Just too lazy. I had great grades and was a high school athlete. Pissed it all away.
- If you have to take the govt loan, do not do any of their repayment plans. That’s how bad situations get worse.

I appreciate the “your own boot straps” sentiment in your first two (and last) bullet points, but they are absolutely horrible financial advice for a person/family entering the college system.

 

[perma]

I appreciate the “your own boot straps” sentiment in your first two (and last) bullet points, but they are absolutely horrible financial advice for a person/family entering the college system.

Sounds like I’m going to learn something today!