Timeline for How can I prepare for my US student debt?
Current License: CC BY-SA 4.0
22 events
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| Feb 11, 2019 at 15:35 | comment | added | Anoplexian | @UKMonkey I agree that it;s not great, but compared to most loans in the US, it's not a terrible loan, and your comparables for student loans in the UK are just that; UK student loans (y'all have a bit better system for that). In fact, they've only gone down for a couple decades Since the 90's and most people that own a home are on a higher percentage interest rate. Even then, they're not too far below it (a couple points), so comparatively it's REALLY not. Shoot, even car loans follow about the same pattern... | |
| Feb 11, 2019 at 13:50 | comment | added | UKMonkey | @Anoplexian 9% is nearly double my current mortgage rate; BUT end of 1970's in the UK interest rates for mortgages were in excess of 20%. So while I partially agree that 9% could be higher, it's pretty terrible when compared to other low interest rate loans. In the UK, student loans are (much) lower interest than mortgages, but it seems the US it's worse. I would consider this a high interest rate loan, not because 9 is "high" (after all, what is "high"), but because I would compare with a mortgage. | |
| Feb 8, 2019 at 16:22 | comment | added | Anoplexian | @user71659 That may be true, but the repercussions for not paying are also much higher for other pieces. You lose your home, destroy your credit report....as a former student loan collector, I can say with absolute certainty that there's not a lot they can do, especially if you're not working. If bankruptcy is your solution here, there's a bigger problem. OP is trying to pay properly, not default, whether it's CC, mortgage, or other, so suggesting bankruptcy is a valid alternative is worrying at best. | |
| Feb 7, 2019 at 20:45 | comment | added | user71659 | @Anoplexian Credit card debt can be discharged in bankruptcy. A house can be foreclosed. Student loan debt is very difficult to get rid of. Think about this in a decade when OP has a family and runs into hard times and needs to pay for food and healthcare for their family. | |
| Feb 6, 2019 at 19:55 | comment | added | Upper_Case | @BlackThorn In that case the OP now has a much better appreciation of how expensive their school is compared with what is available! Thank you for clarifying. | |
| Feb 6, 2019 at 19:53 | comment | added | BlackThorn | @Upper_Case I graduated in 2015. | |
| Feb 6, 2019 at 19:45 | comment | added | Upper_Case | @BlackThorn What year did you graduate? I'm not trying to nit-pick or disagree with your suggestion to transfer, but I've seen a lot of comparisons of this type that are unreasonable: tuitions in nominal dollars were a lot lower in 1988 than in in 2018. Cheaper schools than Drexel definitely exist, which is the main point, but your specific experience targeting a $2500 semester may not be one that the OP can replicate. | |
| Feb 6, 2019 at 19:36 | comment | added | user662852 | Drexel used to have a formal program with Community College of Philadelphia where you took two years at CCP (at CCP prices) and then transferred to Drexel to complete the degree, including the Engineering college. Still exists - but water under the bridge for the OP I guess. myccp.online/transfer-agreements/drexel-university | |
| Feb 6, 2019 at 17:10 | comment | added | Mason Wheeler | Who still writes checks in this day and age?!? | |
| S Feb 6, 2019 at 16:51 | history | suggested | Brian | CC BY-SA 4.0 |
Corrected misspelling; the burrito restaurant is "Chipotle"
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| Feb 6, 2019 at 16:33 | comment | added | Brian | FYI, the burrito restaurant is named "Chipotle". T before L in this case. | |
| Feb 6, 2019 at 16:32 | review | Suggested edits | |||
| S Feb 6, 2019 at 16:51 | |||||
| Feb 6, 2019 at 15:56 | comment | added | chepner | The first half of this answer isn't helpful. It's not like the OP just started his freshman year and is projecting this level of debt. He's entering his final year, and the current debt is a sunk cost: focus on that. | |
| Feb 6, 2019 at 15:23 | comment | added | Anoplexian | @EricDuminil No, it's really not. Is it higher than it could be? Sure. Is it a 25% (common) credit card interest rate in which you've accrued 100k of debt on? No. THAT is hair on fire, not this. This is just long-term life debt. Even mortgage rates are sometimes in the 6% range, so if he treats it like a mortgage with a degree instead of a house, he'll be fine. | |
| Feb 6, 2019 at 8:06 | comment | added | Eric Duminil | @Anoplexian 9.3% isn't supposed to be high??? Left unattended, it doubles in less than 8 years. There are even worse debts but it doesn't make OP's debts good. | |
| Feb 6, 2019 at 1:16 | comment | added | NPSF3000 | @SamGallagher " It was also the best school I got into, unfortunately. " The question you needed to ask was, 'is it $100,000 better than the next university?'. Working on the assumption it costs 100k more than the next university, you need to make sure you're going to earn ~$1,322/month more than the next possibility. Best bet, really considers if you should finish at Dexter, and ensure you're passionate about this degree (too late not to be) and read up on negotiation and how to advance your career quickly. You've dug yourself a hole, but it's a hole you can climb out of. | |
| Feb 5, 2019 at 23:55 | comment | added | BlackThorn | I think you ought to at least suggest transferring to a cheaper school, even though it is only for a year. The tuition to finish OP's degree at Drexel is not worth it, even for a year. To drive that point home, I got the same degree as OP from a small university where tuition is $2500 per semester - about 1/7 what OP is spending. I graduated debt free, paying for things with a part-time job, and had the same starting salary that OP is expecting. | |
| Feb 5, 2019 at 23:54 | comment | added | Anoplexian | Sorry Pete, I can't upvote this like usual. It's not a high interest rate debt, and contributes to a good credit score. This is not hair on fire debt, even if it is a large amount, and pushing a seemingly fear-mongering message that the debt should be paid off, and NOW! Although I will agree that living frugally is a good idea while trying to pay it off quickly, I wouldn't advise spending some of what are likely the best years of a person's life just trying to pay off debt, possibly causing misery. | |
| Feb 5, 2019 at 23:10 | comment | added | user91988 | @SamGallagher fwiw, "the best school you can get into" is not automatically the best choice. Almost always, the cheapest school that you can get into, and still get the same degree, is the best choice. The big secret about university is that what school you go to actually doesn't matter much. You'll learn most skills on the job. It's a shame US high schools do not educate students about this. They always want to push students to get into the "best" school they can—always a terrible idea if the student can't afford it. | |
| Feb 5, 2019 at 22:41 | comment | added | Abion47 | +1 for pointing out that expensive private schools aren't necessarily any better than state universities. The common misconception is that private schools are a good investment because they lead to better-paying opportunities later, when in reality it is a gamble that, even when it pays off, can take years or even decades before you can truly reap the rewards. | |
| Feb 5, 2019 at 19:57 | comment | added | CretaZigman | There are many reasons for choosing Drexel, most important being the co-op program, and the quality of the engineering school. It was also the best school I got into, unfortunately. As for the car, I needed the car for commuting, as public trans was not an option, and we did pay cash. However, I didnt have the cash so a family member paid and I pay them back when I can. I chose $400/mo. Thanks a lot for your answer, though, really. | |
| Feb 5, 2019 at 19:51 | history | answered | Pete B. | CC BY-SA 4.0 |