Thursday, June 23, 2011

Best Debt I've Ever Acquired

Taking out a student loan to be able to attend college was the smartest financial move that I've ever made.  I took four years off after high school and didn't have any plans to attend college right out of high school.  After working jobs without a future, I decided that I should take a second look at college.  Paying for college rested solely on my shoulders.  I was living on my own without any help from my parents.

I knew that I would have to take out student loans to pay for my tuition and books.  I figured that I would be able to pay for my living expenses out of what I was making by waiting tables.  I worked quite a bit in college, usually around 30 to 35 hours per week, to be able to pay my rent and other living expenses that I had.  I had a car payment for the first 4 months of college but managed to pay it off so I didn't have to worry about it when I was in school. 

I graduated college in 4 years with a debtload of around 19K.  I worked hard to pay off $2500 right away before my deferment was over.  I consolidated 16.5K at 4.5%.  My payments are $112.53 for 15 years.  I'm on track to pay it off much earlier than that.

It's impossible to say how much more money I make because I have a college degree but I'm sure that it's at least $1000 more per month.  Even after my student loan is paid in full, I will continue to make more money.  Student loan debt has had a much better return for me than most people made at the boom of the housing market.  I think that because I was responsible about how much I borrowed, it set me up for success later in life.

Does anybody regret borrowing money for college?

6 comments:

  1. Years ago (ahem) when I had a student loan college was not expensive. I think my loan for two years (my parents paid half) was $3,500.00. I paid it off fairly quickly. I would not be in the field I'm in if I didn't go to school. I believe student loans taken responsibly (and that means not using for pizza, beer, flat screen tvs) are definitely worth it. I would advise future students to avoid private student loans at all costs, however. I LOVE that you worked for your degree, and I'm sure you appreciate it that much more!

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  2. An education is one area that will always pay you back. As long as they are taken responsibly. Without my degrees I would not be where I am today. Without my Credits Cards I would not be where I am today. :) Should have gotten a degree in finance.

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  3. This is good inspiration for me as I have taken a break myself after achieving my associate degree. I have my sights on going back to school sometime in the future when I am certain of the career path I will be on but for now I'm just waiting.

    You've done a good job and you worked hard so you are reaping the rewards now. You deserve it.

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  4. I haven't gone to college yet, and have been contemplating it. The thought of stupid loans have scared me so badly though.

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  5. I attended college right out of HS but never did finish and thank goodness for 3 years I didn't rack up any debt from it, but the worst part was I wasted 3 years. I'm contemplating about going back and this time the loan is to the tune of 30,000 so hopefully if I do decide to go it'll be worth it.

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  6. I don't regret taking out student loans for my education as much as I regret the amount I took out. I took out way too much money and was irresponsible with it. But, hopefully I can start paying some of it off within the next two years or so. Hopefully, depending on my career path. :)

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