<p>It’s not good, but some of it is choice. If you can’t comfortable afford to pay for a $260,000 bachelor’s degree, it may not be a good choice. </p>
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<p>The big difference with taking out significant debt to purchase a house, cars, and in some cases even vacations, is that the lender will vet your credit-worthiness FIRST. </p>
<p>As an undergrad student with:
- no significant present income
- no collateral
- no limits on which major you can pick
- no guarantee you’ll graduate
- uncertain prospects for post-graduation income
go ahead and try to borrow $50,000 from a bank to buy a luxury car.</p>
<p>Grad/med/law/bz students are a better risk. They have at least demonstrated their ability to graduate from school and have committed to a major.</p>
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<p>I think this is really important to remember. When surveys ask people to self-report their happiness, it makes a difference whether they’re comparing themselves to people who spend like drunken sailors or to people who are more frugal. If you’re counting on a high-paying Wall Street job in order to pay back those loans, you will find yourself surrounded with people who are living a very expensive lifestyle, and you may feel very impoverished by comparison. It might almost be better to take a lower-paying job in a less affluent area – you’ll spend more years paying off your loans, but you might be happier with your life.</p>