Debt Financing Undergrad Degree

College Majors Business Major
1

I am currently an sophomore undergrad in a pretty unique business program that is a cooperative between three international universities, one in LA, Milan, and Hong Kong. My cohort spends a year at each (the 4th year can be a university of our own choosing) and at the end we get a BS in Business Administration from each institution. It is a relatively new program, but previous grads have received attractive job offers and the admissions are very competitive. I am financing the program through private loans that my parents cosigned, and will be ~55K in debt upon graduation. I am currently 20K in debt and am at the critical point on whether to decide to continue or not.

I am not fond of my cohort, I have several close friends but the majority of them are rich and entitled. I think this program is a feeder for wealthy students who can’t get into ivy leagues but want to go into i-banking or management consulting. I’ve had several internships and dislike the amount of collaboration I have had to do while always worrying about office and group politics. As I’m not interested in finance or consulting, I feel like my dislike of office work will lead to me being unhappy in the future, particularly because I will be tied down for at least 3 years paying off my loan. I am worried about being caught in a cycle of work and debt that will ruin my 20’s. The program administrators claim graduate’s ability to secure jobs and internships is due to the program, but I often think it is because of the wealth and connections they inherited that opens up opportunities (non-paid internships, travelling for interviews, etc.) that I will not be able to capitalize on.

If I drop out, I plan on working as many jobs as possible while staying with my parents to maximize the amount I can pay off. I’ve predicted that I will be able to pay off my debt within a year and a half under this structure. After this, I hope to secure a contractual job–I’ve looked into doing deckhand work for the Seattle Ferry service as well as being a USPS carrier-- and use this money to begin my retirement fund and pursue a dream of completing the triple crown (hiking the PCT, AT, and Continental Divide Trail). I love hiking, reading and writing and, under this route, plan on going back to school after pursuing these interests to become a community college english professor, which will allow me to maintain flexibility with my life and continue contributing to my retirement funds (I want to set up a traditional and Roth IRA as soon as possible).

I feel like this is a monumental, life-changing decision and the pressure is making it hard for me to take action. I could finish my degree and end up landing a great, creative business job where I love my work group and make bucko bucks–on the other hand, I might drop out and find myself unable to handle the tedium of minimum wage jobs. I think the ability to support myself and my own personal mental health (I’m prone to bi-polar swings and depressive bouts) are important, and want to achieve both.

Any thoughts on debt-repayment, realistic post-undergrad business opportunities , or general advice would be greatly appreciated.

2

Wow. If the school is not for you then definitely stop the meter from running. But I would find a cheaper program to finish up with. Completing a degree will be better for employability than not.

3

You could transfer for junior year to an in-state school where you can pay less? Now is the time to do transfer applications.

4

^ Yes, you should attempt to transfer somewhere else to finish your degree before dropping out. It will be difficult to pay the loans you already have without the type of job you can get with the degree.

5

I agree that if you don’t like your program, leave it before you incur further debt.

I just wanted to share with you some info about working for USPS because my oldest son, who also decided college wasn’t for him, is a mail carrier. Back in 2010 or so, during the recession, the union/management entered into a contract which preserved benefits for employees at the time and sacrificed future employees. Anyone coming in now is a CCA or city carrier assistant. You can be terminated at 30, 60 or 90 days. If you make it that far, you do get health insurance, which is decent and affordable. For my son, it was necessary as he was aging out of my coverage but if you are under 26, it might still pay for you to be on your parents’ policy, depending on cost, co-pays, etc. As a CCA, you get a 360 day contract, after which you are furloughed for 5 days. If you are rehired, you then start again on another contract. You are in the running to become a permanent employee but it can take time. My son’s second contract is ending in April. He will be rehired. He is next in line to become permanent at his station, but he doesn’t know when that might happen. Until it does, he isn’t eligible for retirement plans and the CCA time doesn’t count towards his pension (see how the new hires are penalized). Despite that, my son enjoys his work and is thinking about going back to school. There is an on line qualifying test, you have to have a valid driver’s license and you must pass a drug test. You don’t have a totally set schedule as a CCA but you could take online classes if you chose to. It’s a decent job for someone who isn’t interested in being in school. By the way, I went to law school with a guy who was a mail carrier. I don’t know how he organized his schedule but he graduated and passed the bar.

Good luck.

6

You need to finish your BS or BBA from your state flagship - hopefully it’ll cost less than your current program and your cohort will be less entitled.
Apply for transfer to state business schools ASAP.
Pay back your loans from the job you get after graduation then start on your hiking plan etc.
You can’t live on the wages made from being an adjunct at a CC. It can only be a complement to a full time job.