Originally Posted by Aerogirl
I couldn't agree more KL. Many of my friends kids are in their first year of college and are taking loans out to pay for most of it. One on my close friends kid will have a $150.000 loan to pay off, that's just nuts. We do have some money for school saved up and his two choices are NIU or NEU both of which we can pay almost all of It with what we saved for college, I do not want him coming out of school with debt. If he chooses NEU he cam live at home at take care of the cats while D/H and I travel
He's very lucky to have parents that saved for his college and can support him this way. I wouldn't go the teacher route that's hard to find a job in the field. Plus the pay is bad and teacher end up out of pocket for school supplies. My hubby works at staples and back to school sales a lot of teachers come into the store. I went Business degree. I graduated in December 2002 and started my career March 2003. So it took me three months after graduation to get a job that I'm still doing and enjoy. Really that's the key to find a job you enjoy it makes going to work so much easier.
A $150K student loan is the size of a house payment. What career is this close friend going to get that will pay off this loan quickly? $150K at 3% interest with a 15 year loan is $1,035.87 monthly payment
and $36,457 in interest. That payment is so high my guess is the loan is at least 20 years long montly payment of $831.90 and $49,655.14 in interest over the life of the loan. So in the end she could be paying almost $200K for her education.
This is way so many people default on student loans.