Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I read that your salary first year out of college should be greater than your debt or it will take you 30 years to pay back.

So if your first years salary is 40k, don't take on more than 40k debt.

DH had 85k and I had 0. It hasn't impacted our life at all. Still bought a 400k house 3 years after graduation. Aren't concerned about it. The debt is now down to 15k at 27.

What if it takes 3-6 months after graduation to secure that first job?

That's why there is a 6 month grace period before repayment begins.

Extend it to a year and a half or two and that'll reflect the job market new grads face now.

I finished my bachelors in 2010 and had a job in 2 months. I finished my masters this year and had a job before I graduated. The reason I had no trouble getting a job when I finished my undergrad is because I worked full time all the way through school. When I graduated I was ready to take on a managerial position because I had already served my time. I wanted to move to a new city, so the search took longer since I had to travel for interviews. A college degree on its own does not guarantee a job. People seem to forget that fact.

It depends on what type of work you're going to go into... but a lot of people don't know what they want to do until they get to college and are committed to that debt.

I guess half the cost is a pretty good rule of thumb, but I'd only feel comfortable with about $50K max.

Anonymous wrote:Any at all. Just look at the US in comparison to other OECD countries. Stupid stuff like skyrocketing college costs got us to this point.

When did we get so money-oriented in this society that supposedly nonprofit universities felt allowed to get away with the kind of greed that's raised college costs 600% in two decades?

True. And those government loans for students for four years don't even cover one semester at a private college.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I read that your salary first year out of college should be greater than your debt or it will take you 30 years to pay back.

So if your first years salary is 40k, don't take on more than 40k debt.

DH had 85k and I had 0. It hasn't impacted our life at all. Still bought a 400k house 3 years after graduation. Aren't concerned about it. The debt is now down to 15k at 27.

What if it takes 3-6 months after graduation to secure that first job?

That's why there is a 6 month grace period before repayment begins.

Only subsidized stafford loans, which are limited to $19k. Additional loans have no such grace period. Interest begins to accrue immediately.

Anonymous wrote:When is college tuition debt just not worth it? What will your kid be forced to sacrafice for years down the road? Family? Home purchase?

No, but DH and I will be forced to sacrifice a decade of retirement to help our kids. A college degree is indispensable now.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I read that your salary first year out of college should be greater than your debt or it will take you 30 years to pay back.

So if your first years salary is 40k, don't take on more than 40k debt.

DH had 85k and I had 0. It hasn't impacted our life at all. Still bought a 400k house 3 years after graduation. Aren't concerned about it. The debt is now down to 15k at 27.

What if it takes 3-6 months after graduation to secure that first job?

That's why there is a 6 month grace period before repayment begins.

Extend it to a year and a half or two and that'll reflect the job market new grads face now.

Any at all. Just look at the US in comparison to other OECD countries. Stupid stuff like skyrocketing college costs got us to this point.

When did we get so money-oriented in this society that supposedly nonprofit universities felt allowed to get away with the kind of greed that's raised college costs 600% in two decades?

I only had $3,500 when I finished my undergrad and took $10k with my graduate degree. I looked at it as what monthly amount did I see myself comfortable paying with all my other commitments. I won't miss $100-150 a month, so $10k seemed good. It's also small enough to pay off in large payments, like when I get $3k back for taxes.

Anonymous wrote:

Anonymous wrote:I read that your salary first year out of college should be greater than your debt or it will take you 30 years to pay back.

So if your first years salary is 40k, don't take on more than 40k debt.

DH had 85k and I had 0. It hasn't impacted our life at all. Still bought a 400k house 3 years after graduation. Aren't concerned about it. The debt is now down to 15k at 27.

What if it takes 3-6 months after graduation to secure that first job?

That's why there is a 6 month grace period before repayment begins.

NPR had a segment about this today. It's a growing problem for more and more graduates.

I think anything under 20k is doable. The pay premium for being a college grad should cover the monthly payments. Between 20k and 40k, you'll be paying $300 to $500 per month, and you'll feel that. Over 40k probably isn't worth it unless you are going from an Ivy to an investment bank/consulting firm or to a top engineering program. Then your extra monthly salary will probably cover it.

Anonymous wrote:I read that your salary first year out of college should be greater than your debt or it will take you 30 years to pay back.

So if your first years salary is 40k, don't take on more than 40k debt.

DH had 85k and I had 0. It hasn't impacted our life at all. Still bought a 400k house 3 years after graduation. Aren't concerned about it. The debt is now down to 15k at 27.

What if it takes 3-6 months after graduation to secure that first job?

Anonymous wrote:I read that your salary first year out of college should be greater than your debt or it will take you 30 years to pay back.

So if your first years salary is 40k, don't take on more than 40k debt.

DH had 85k and I had 0. It hasn't impacted our life at all. Still bought a 400k house 3 years after graduation. Aren't concerned about it. The debt is now down to 15k at 27.

Gad, I've heard this before, too, but that is much too rich for my blood. My personal rule of thumb is that I wouldn't borrow more than half that. The government limits subsidized student loans for 4 years of college to about $19k, and that seems a comfortable amount to me, whatever the expected career. That amount of debt could be managed even by someone waiting tables while they looked for a job. Of course, some students might HAVE to borrow more than this amount, but note that they won't be able to without a co-signer.

But like the PP above, this is based on my own personal experience. To go to college, I borrowed an amount that turned out to be about half my salary in my first job; and to go to grad school I borrowed again an amount that turned out to be about half my salary in my first job out of grad school. This amount of debt was completely manageable for me and in no way dictated my life choices, so it's a standard that guides me as I think about what my own children should do. I should also add that my teen isn't likely to pursue any of the higher-paying STEM careers, so that's something I keep in mind as well.

I read that your salary first year out of college should be greater than your debt or it will take you 30 years to pay back.

So if your first years salary is 40k, don't take on more than 40k debt.

DH had 85k and I had 0. It hasn't impacted our life at all. Still bought a 400k house 3 years after graduation. Aren't concerned about it. The debt is now down to 15k at 27.

When is college tuition debt just not worth it? What will your kid be forced to sacrafice for years down the road? Family? Home purchase?