Thursday, April 12, 2012

Don't Get Into More College Debt Than First Year Paychecks


(WSJ) How Not to Major in Debt

The best quote which was in the print version but for some reason was not in the main text in the online version was to not get into more debt than you can expect to make at your first job.


The total amount of outstanding student debt has surpassed $1 trillion, according to the Consumer Financial Protection Bureau. If your child is in the process of choosing a college—or is already enrolled—your family might soon be adding to the heap.... College costs continue to soar, despite a relatively low inflation rate, with the total bill at some elite universities nearing $60,000 for the 2012-13 school year.
If your family is weighing college choices or just beginning the hunt, here are some common misconceptions about student debt—and what you really need to know.
*end quote*

Here are major sections, see link for article for what she said: 

The interest rate is what matters most.
Once made, all student loans are alike.
You can't determine what a college is going to cost until the student is accepted.
The financial-aid package offered at admission is good for all four years.
You should start at a cheaper community college.

Now if you are an engineering or computer science major from a major school, that might be as much as $60-80,000, but I know recent CS graduates who made half that contracting for part of the year. Lots of liberals arts majors are lucky to make $25-$35,000 their first year. Probably a good idea to keep it less that a $18,000 new car, and certainly don't dig yourself into a $250,000 hole for law or medical school.

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