Question about $16k in total debt

<p>What do you guys think about 16k in school-offered debt? I'm an international student and my parents have made it clear that they will not be responsible for that debt (unless I'm at the brink of starvation or something). As I am not American, I probably would not be able to bring in as much money elsewhere in the world (think eastern europe) to pay that debt off comfortably. Post-graduation, unless I go to graduate school (PhD or nothing; maybe a master's in Canada if funded), I would like to do something I really like, but I'm questioning whether this would be "practical" in terms of facing the reality that is loans. I've studied economics and although I liked it (and know that it is more lucrative than the other social sciences), if given the choice, would choose a major in sociology or poli sci. What could I do with a major in these fields--outside America, preferably in an English-speaking country?</p>

<p>Any creative ways to pay off these loans (are stipends from grad school enough to pay off those loans)?</p>

<p>You must plan on returning to your home country after your student visa extension for the OPT runs out. What you would be able to make on a recent college graduate salary for the year of your OPT will almost certainly not pay off that amount of debt. </p>

<p>If you would continue in the US for grad school, yes, you could use a stipend for whatever you want. However, most PhD students need every cent of their stipend to cover their living expenses.</p>

<p>Unless you know for certain that you would be able to pay off this debt in a reasonable amount of time with what you would earn in your own country, do not borrow this much money.</p>

<p>It’s not a lot of debt for a working professional to carry. </p>

<p>Is it $16k debt for the first year, and then possibly $64k or more total for 4 years?</p>

<p>ClassicRockerDad -</p>

<p>This is an International student who must plan to leave the US after his/her OPT expires. The question is whether or not that level of debt can be serviced in US$ with an income earned in his/her home country (or in the country where he/she will end up working). For many, many parts of the world, the answer to that would be a big, fat NO.</p>

<p>This student needs to talk with his/her parents and potential employers in his/her home country about starting salaries there, and about probable career growth there, in order to evaluate whether or not a debt of US$16,000 makes sense at all.</p>

<p>$16k total debt. Interest accumulation begins after 9 months from graduation (9%). Loan repayment and interest accumulation are deferred if I attend graduate school. Forbearance for economic hardship is available, but the debt is not serviced in that fashion you mentioned. All of this made sense and put me at ease until I realized what would happen if I decided against 5 (or more) years of underpaid labor and against a career in academia. My impression is that a major in something lucrative-ish would put me in a safer position than in, say, art (but I really don’t want to follow the money-- this would completely defeat my purpose in going to America as I could have just attended USydney and worked in business in Aus). Yes, I have the option of moving to Australia if all else fails, but I have no support services there and would be a huge struggle at the start, esp as a poor, new graduate with a degree from a school that Aussie employers would not recognize. I do not want to wait on tables (unless we’re in the throes of another recession), as I could do that now.</p>

<p>Um, about OPT: what kind of jobs could I expect to get for a year in the US through OPT for sociology/poli sci (let’s presume the economy will be healthy in 2018)? Is it possible to earn enough in a year to pay off at least $10k?</p>

<p>How long is the period of repayment on the loan?</p>

<p>I just don’t understand why anyone would borrow a tiny amount of money to come to study in the land of opportunity, and then not take advantage of said opportunity to put themselves in a strong position to pay it back. </p>

<p>I think 10 years? Well, honestly, a student visa is restricting, as is the competition for the work visa. I can’t say what would happen after four years as I have seen many international students get work visas to work in finance or engineering. But, as a social science major, I wonder if I really have access to any of that opportunity.</p>

<p>Repayments amount to $203 per month over 10 years. </p>

<p>What kind of opportunities are available in your home country for a social science major? </p>

<p>How do you intend to eat for the rest of your life?</p>

<p>That, well that is a pretty difficult question, and one I hope to figure out in the next four years. I just don’t know how one would market a sociology or political science major. I see these majors as ends in themselves, and well, yeah… I have thought about working at non-profits and as a development analyst. Or something. I just don’t know. This incertitude is why I picked America.</p>

<p>But surely you would be able to pay back $203/mo in any job you would take, anywhere. Don’t you think? I’m asking. I don’t really know. </p>

<p>Yeah, most probably. Honestly, it’s just that I want to pay them off as soon as possible. I think it’s an irrational fear, really. I mean, I have seen what debt does to people, and so I was reluctant to take any kind of debt for college (my debt free options would have cost $12k over 4 years out of pocket for my parents, so at the time, I thought it didn’t make a difference in terms of “net cost”). Maybe I’m just worrying too much?</p>

<p>Have you thought about going into a STEM field?</p>

<p>I’ve taken college-level classes in physics, chemistry and biology. I hated all of them. I will consider math (and I will dabble in computer science), but that’s it.</p>

<p>I know of a sociology major that works at google in people operations but that is from a very high end college. Same with an art history major working in people operation in corporate ethics, but from very top college. So that is one company hiring such grads if that interests you. You can always get that on a resume and impress for the kind of organization you’d rather have. 16k seems low/manageable, you are talking AUS, not a thrid world country? I’m confused, I though you were saying Eastern Europe? I know one econ major from eastern eur who really wanted to go to wall street but graduated in 2009 so no dice. Went to france for grad school but left for markets job in a very nice European capital, didn’t go home for work.</p>

<p>Yes, my home is in eastern europe, but I am Australian and have little to no connections back in Australia.</p>

<p>Econ requires a decent amount of statistics, and stats skills are quite useful.</p>

<p>I wouldn’t be too worry. Is Australia the type of country where employers care about credentials or one where you need connections to be hired, or is it like the US, where generally, employers are looking for the best person for a job and care more about skills/what you can do than credentials?</p>

<p>In any case, I wouldn’t be worried about that amount of debt.</p>

<p>Yes, I am well aware of what econ requires, and I’m quite positive it’s much more than just stat. But, strong skills in stat, and math, are useful for nearly all of the social sciences.</p>

<p>I have yet to research the Australian job market.</p>

<p>It sounds to me like you should pursue what you want to pursue and go for it. </p>

<p>If for whatever reason things don’t pan out, you have the ability to work in Australia. So paying back the $203/mo should really not be a major impediment. </p>

<p>International95 - As an Australian national, aren’t you also eligible to work in New Zealand? If so that gives you two job markets to look at. Do you have any immigration eligibility for Canada? And no, I don’t know of any jobs that someone with your major would get right out of college for the 12 months of OPT that would allow much debt to get paid down. In my area, a lot of those positions are near-volunteer salaries, and the recent college grads are lucky if they can afford their rent, utilities, grocery bill, and a couple of beers on the weekend.</p>

<p>ClassicRockerDad - while I have read of instances in which recent college grads with only a BS in Comp Sci or Engineering have managed to find an H1B sponsor after their OPT expired, I have never read of an instance where that was managed by a person with only a BA/BS in any other field of study. US$16k is not a whole lot of debt for a US citizen or legal permanent resident to graduate with. However, for someone with an F1 visa, it is just plain too much unless there is a guaranteed job outside the US that will allow that student to pay down the debt in a reasonable amount of time.</p>