College Debt Sucks – Money should be a factor when deciding where to attend
A good friend of mine is heading off to school this fall (lucky him) to start his freshman year but has yet to make a final decision on which school to attend. I wrote him an email Tuesday morning sharing my thoughts on choosing schools and I thought it made sense to post it to the blog for all to read.
Hey (friend) –
Hope everything’s going well and you’re having fun wrapping up the end of high school. I was reading an article in the Wall Street Journal on the way in to work this morning and thought of you and your pending school decision. The article talked about the soaring default rates on student loans. Lots of people are graduating and are unable to find a job to pay off the tremendous debt that they accumulated in college. Most people are quick to attribute this to a poor job market and draw sympathy from others because they are unable to pay off their student loans. Take a look at this quick snippet from the article which discusses a recent student’s struggle with debt after graduating from a private school.
Sarah Kostecki, a 24-year-old sales associate in New York, graduated last year from DePaul University with a major in international studies and $87,000 in debt, translating to monthly payments of $685, the vast majority of which are private loans. The payments represent more than a third of her take-home pay. “It feels like I’m being punished for having gone to school”.
I think it is foolish to seek pity or place blame on others for one’s own decision to irresponsibly take on so much debt. When choosing colleges, people are quick to forget about the reality of the bill that comes at the end and often ignore the major difference in costs between attending various schools.. The kids who accumulate the most student debt and therefore have the toughest time paying it off after school are those who CHOOSE to attend either private or out-of state institutions. Making the decision to go to a more expensive school (private or out-of-state) will guarantee you will graduate saddled with more debt than an in-state institution and there is no benefit of an associated higher salary to aid you in paying off this increased bill.
As you contemplate your school choices over the next few weeks, I urge you to put economics front and center in the decision making process. At this moment it is a crapshoot as to which school you will ultimately be happiest at, but one thing is certain – graduating with the least debt will be key to starting a great life.
-Brad
Does anyone have any stories to share about people they know who have been burdened by excessive debt taken on during their college years? Any additional advice for my friend beyond my own is much appreciated.
I can’t agree more! When I finished high school 10 years ago (yikes!), I desperately wanted to attend art school in Baltimore at MICA, but at the time, with a price tag of $26k/yr (it’s now nearly $36k)…it just wasn’t in the cards…and still isn’t.
I ended up going to community college and used my time there to begin researching other art schools that were more affordable. I discovered VCU in Richmond, VA…an in-state school…with a well ranked arts program! Though life’s journey took me on a few detours, I finally made it here (VCU) last fall and I couldn’t be happier with my choice. Tuition and books for a full year was only $7,600 (living expenses excluded). I still have two more years to go (yea for changing majors…ha ha!)…but all 3 years at an in-state university will still be cheaper than 1 year at MICA.
At the end of the day, a degree is a degree, and unless you plan on becoming a doctor or lawyer, etc…it really doesn’t matter where you attend. Sure, the prestige of certain schools are certainly appealing, but be prepared to pay for that notoriety. Choose a school that fits you AND your wallet. Best of luck!
while i STRONGLY agree that you must weigh in the cost consideration, i disagree that a degree is just a degree….with many jobs in the professional area, it does matter which school you attend, because it opens many more doors (with jobs, recruiters) if you choose somewhere that is more established.
but i do agree with brad and shannon, that there are many in-state schools that can provide a comparable established education, and in many cases you don’t need to look out-of-state/private if you simply can’t afford it. but choose carefully, because the degree from WHICH school does matter!
ok…perhaps I spoke too casually, but as someone who is 27 and still w/o a degree, let me tell you that ANY degree, even from “JoeBlow State” is better than none.
I agree with nana. At my company we almost exclusively hire from big name universities. You need a good referral with sold experience to make the exception. It boils down to what is available in the market, and currently you can get a person with a masters or MBA for positions previously filled by undergrads with little experience. It’s a tough market right now for those coming out of school looking for work.