They are 23 or 24 years old living with roommates and say they are happy, and that the debt is no big deal. One drives a used car, the other takes public transportation. They live in a great city and make much more than their roommates. That is how it’s done around here. Their salaries will grow fast in this economy.
Are student loans at 14%?
The amount of debt compared to the expected earnings, and expected earnings growth is really the issue, and while it’s a lot, it’s not insurmountable. I still see the one year delay of the big paychecks, discounted back to today’s dollars, as a number very comparable and probably exceeding that undergrad debt by a fair amount. In other words, the debt will likely yield a positive return. As with any business plan, there is certainly risk.
There is also the risk of waiting a year and not getting the scholarships because the competition got tougher. Who really knows what this country will look like in a year.