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?


  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!

  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.

  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.

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

  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.

  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. :)