Reply to If you took out six figure student loans for a professional degree, what was your strategy

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I've heard, for a graduate degree, you should never take on more debt than the salary you would earn during the first, full year after obtaining the degree.[/quote]

Actually, that's the advice money managers give for bachelor's degrees --- never take out more for college than you expect to make in your first year doing the job you are trying to prepare for.  [/quote]

For a bachelors that makes total sense.  CS majors could take out $80K, don't recommend it as it is not needed, but they could and do ok.  History/English/psychology majors probably shouldn't take more than $40K for undergrad. [/quote]
Even with a full tuition scholarship, $40K would not cover room and board for 4 years. [/quote]

That is fairly obvious.  But most kids work in the summers and breaks to earn money for college.  In the DCUM area, a kid could live at home during the summer and earn $10-12K fairly easily if they really want to between summers, xmas break and other breaks.  Get a PT job during the school year to fund spending money.   If parents can kick in $5-7K/year, the kid may not need more than the $27K in fed student loans.

Main point is go to college that you can afford.  It is possible to do.  There are state schools that all in are ~$25-30K and if your kid has stats for T25 or T50 schools, the can get merit at some of these schools or many private schools.  Do that or find a private a "tier down" that gives you great merit to make your yearly cost only $25K or less.  They do exist, it just wont be T25 schools.

But it's really not smart to take out even $40K in loans for a psychology degree with the goal of getting a MSW.  Go to the most affordable school you can find and graduate with minimal debt if that is the path you desire.

And even for STEM degrees, you do not need to spend a fortune. 
[/quote]

People are going to affordable state schools and leaving with $40-50k in loans. You really think they don't work during breaks or ask parents for money?[/quote]

Yikes. I was with you until the “ask parents” part.

I went to I of Iowa and the combination of low in-state tuition and low COL meant even as a millennial I could work my way through school with very minimal loans. People in MD/VA/DC are really getting screwed compared to the many states where this is still possible. Even for kids without parental help. [/quote]

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