Apr 7, 2006, 3:51 PM
Post #87 of 793
I understand the desire to get started now, but if you're feeling this uneasy about the financial aspect of committing to a school that will cost you big bucks, well, a year isn't really that long.
Re: [jennymck] Decision making process...
[In reply to]
If you reapply next year to a well-funded 2-year program, you'll be graduating with those of us that enter 3-year programs this fall.
I can see how painful it would be to be so close and then choose to wait, but debt is a really terrifying thing. And yes, there are people who attend some expensive schools, sink themselves into debt, and later say they have no regrets. But debt is stressful. Chances are, we're not going to make the money to pay off our debt within a relatively short period of time. And how much are you going to be paying for the $60k education? This is something that seems to go overlooked. Maybe it isn't actually overlooked, but we don't seem to discuss it: you aren't just going to be paying back the $60k. You're going to be paying it back with interest. What will that interest amount to over the life of your loan? Another ten thousand dollars? If you're lucky.
Here's an example, and it's really scary. I'm not trying to be scary; it's just that this is how I see things. I don't want to give out too much personal information on the Internet, so I won't use specific numbers, but I have a federal student loan (which means it's relatively low interest). I selected a fairly aggressive repayment option. If I payed my minimum every month for the life of this loan, I would be paying 1.3 times the amount I borrowed. If you got your loans at this same interest rate and you had the same aggressive plan that I did, you would pay $78,000 over the life of the loan for the $60,000 you borrowed.
I'm not a financial advisor, so this figure is probably buggered (for instance, it might actually be *more* because you will be taking out half that amount for the first year, not likely paying much of it as you go, and then taking out the other half for the following year). But this is how it looks to me, and as such, it is the main reason why I didn't apply places where I didn't have a good chance of getting funding.
So, is it worth that amount of money for you? Or do you think you really would be happier without that kind of debt?
If you decide you want to look elsewhere, one place you can look is Ohio State. I'm not a nonfiction person, so I can't give you details on a bevy of programs, but I can say that people studying at Ohio State seem to be very happy. Ohio State is also a fully funded program.