Graduating with loads of debt, and still wish to go to grad school. Am I crazy?

<p>Hi all,</p>

<p>Like an ugly memory, I've tried to resist thinking about my mounting problem-a load of debt for which I cannot possibly account right out of college with the type of salary I expect to make. However, now that I have only three semesters until I graduate, I've had to contemplate the real-life burden of carrying such a large amount of debt, and how it will affect the pathways typically associated with the career I hope to go into, i.e., graduate/law school. Here's the deal: I went to BYU my first year of college, where I was required to take out about $15,000 in student loans after subtracting the Pell grant from its COA. These are a combination of Federal Direct/(un)Subsidized Stafford and private loans, but mostly private loans. Thereafter, I transferred to Rutgers as an OOS student to pursue a BA degree in philosophy (a field Rutgers is quite known for), where tuition, along with living expenses (living in Utah was dirt cheap--$240/month for rent + utilities!), increased considerably. I was required to take out $26,000 my first year and in my second year, $18,000 after being awarded merit aid for my academic performance at the school. I anticipate paying no less my final year of college. </p>

<p>Now, my question really amounts to this: how limited will I be in terms of deciding where I will be attending graduate or law school, being saddled with this much debt? Will it be something like 'Harvard or bust'?--i.e., I can only attend if the school offers to cover all of my education expenses.</p>

<p>At any rate, here's what I do know about my situation: Assuming I do go to law school, and law schools, as is commonly circulated, are in fact less willing to offer significant financial aid, I will likely have accumulated over $200,000 in debt by the time I graduate. This makes law school less desirable for me. On the contrary, if I am right in my assessment that graduate school is less financially intractable for most people (taking into consideration assistantships, stipends, and whatnot), and I graduate with approximately $40,000 in debt, a reasonable estimate I think, how much would I have to make in monthly payments when I graduate, and will the job that I seek (professor) be able to meet such payments? </p>

<p>Or is all this hypothesizing frivolous and I shouldn't even go to graduate school, and instead think about making payments right after I graduate? </p>

<p>Thanks for listening.
T</p>

<p>P.s. As you might have surmised, my family does not contribute importantly to my college education and so, being as dependent as I am on outside assistance, I don't think my own desires will be relevant to this discussion, but what the heck, I will reveal them: I have always wanted to obtain a PhD or JD and afterwards work as a research professor (I love reading and writing), and as such, I have spent my time at Rutgers preparing myself for the possibility of attaining either degree. I double-major in philosophy and the classics and have an almost unblemished record--a 3.96GPA with my only non-A grade coming in Intermediate Latin Prose--a B+.</p>

<p>You can go on the NSLDS website and find out what your payments will be with your current debt. You can use online calculators to figure out what the added debt will cost.</p>

<p>No one can tell you what is best for you. If you do decide on grad school, I would certainly suggest you try to find a school where you can "earn" your tuition (grad assistanceship, fellowship, etc). There are some law schools that have fellowships, as well. I would advise really trying to find something that won't add to your debt (too much, anyway). I also think working first is fine. Whatever you decide to do, try to keep future debt to a minimum.</p>

<p>Kelsmom,</p>

<p>Thanks for that website. I never knew there was a site that grouped all of our outstanding loans together into one page before. I'll fish around it more tonight.</p>

<p>Regarding my debt, it seems you may know or have advised people who've been in the same boat before. What have they told you of their working lives? Will this much debt translate into certain economic hardship? I know it won't be easy meeting a $1000+ monthly payment faithfully, not counting the other bills I have to pay also. Nevertheless, your manner of speaking reserves a mild glimmer of hope for me. </p>

<p>T</p>

<p>You do need to find exactly where you already stand with your current debt. It sounds like you really have no idea how much your debt is already growing. </p>

<p>If you borrowed $15k year one, $25k year two, $18k year three and will borrow another $18k next year your debt will already be $76k before you add all the interest that has been accumulating. When you add the interest that has been accumulating (assuming you have not been paying it as you go along and assuming an interest rate of say 8%) your debt by the time you finish your undergrad will have grown to over $92,000. The monthly payment on your undergrad debt alone will already be more than the $1,000 you mention.</p>

<p>The problem with incurring such an enormous debt for your undergrad is that it severely limits your options or what you do next. If you go to grad school then, as Kelsmom said, try and find a way of doing so without incurring significantly more debt. The debt you will already have will be growing every year because of the accumulating interest. </p>

<p>Your payments will end up being significantly more than $1,000 a month. Please figure out your financial situation before you take the next step.</p>

<p>I know a young woman in her late 20's who accumulated $60,000 debt for her undergrad degree. She readily admits that she borrowed to support her wild spending habits. She made arrangements for a graduated repayment schedule. If you look at the website, there are several repayment methods. Even so, though, a HUGE portion of her income goes to her loans. She has not been able to enjoy a comfortable lifestyle even several years after graduation due to her loans. She babysits at night & on weekends for extra income. She makes a little over $40,000/year in her regular job. The nice thing is that she works for a university & she is getting her masters for free. She is hoping to get a better job down the road so that she can eventually get out from under her debt.</p>

<p>It is definitely possible to repay the debt. It just isn't easy. You need to have the strength to avoid spending money you don't have ... someday, the loans will be paid off & you will be able to enjoy your earnings.</p>

<p>You should definitely work to get the private loans paid off as soon as possible. The interest rates and terms for these are usually much higher than the stafford and government loans.</p>