Trip or Pay Some of College Debt

kinglin · 05-29-2009, 05:45 PM

I've accumulated about $2500 through a small part-time job I held. I'm graduating in a year and thinking about taking a trip to China. The reason I want to visit China next year, is because my college friends from China will be graduating next year too. I've talked about visiting China with them, because having them there will help me better see what China has to offer.

Should I spend the money on the trip, or use it to pay off my college debt?

sk8rmom · 05-29-2009, 07:32 PM

If your debt is not unaffordable, and you don't need to buy a new car/wardrobe/whatever for your new career, my vote would be for the trip. It sounds like a once in a lifetime chance to tour with your friends and you'll undoubtedly see and learn so much more that way.

thumper1 · 05-29-2009, 07:37 PM

Take the trip.

JamesJr · 05-29-2009, 10:48 PM

I agree. You should have sufficient time (years) to pay off your debt. This will be a unique experience for you that you will probably not have time for once your full in on life with a career. Take the trip with your friends. You will truly experience their culture instead of being a tourist by hanging with the native born people.

hmom5 · 05-30-2009, 12:26 AM

If you have a job lined up, or one is imminent, and your total debt is less than your first year's salary, take the trip.

everytime · 05-30-2009, 05:33 AM

I think it depends a lot on how much debt you are in. Not to mention your job prospects, if you do not have a job lined up for when you graduate I would save the money. With the economy the way it is, you may not be able to find a job before it is time to start paying your student loans back.

dt123 · 05-30-2009, 06:37 AM

Agree with everytime. Work hard this year to make sure you have a job when you graduate, then when you are sure that you do have one, reward yourself with the trip to China. Otherwise you may need to live off that $2500 and not even have the option of paying down your debt.

psych_ · 06-08-2009, 12:08 PM

How much debt do you have?

kelsmom · 06-08-2009, 08:29 PM

And is it subsidized or unsubsidized?

cptofthehouse · 06-08-2009, 09:41 PM

I think that there are issues you need to address before making the decision. Namely how much debt you have, how much more you are going to have by the time you graduate, what your job prospects are, how much your family is going to be able to help you with loans and getting into your job.

I was just speaking with a young lady who decided she owed so much money, so what the heck, she took her excess and went traveling. Problem is, she wasn't earning money either while traveling, and is going to be behind in the job search process during a time when jobs are hard to find as it is. Parents are having a tough time so they will not be of much help and they live in an area where she is unlikely to find the type of work she wants, which means she is going to need money for down payments, deposits, etc looking for work and getting started away from her parents' home. In her case, that money was a necessary cushion, in my opinion, and not well spent. She is going to have a tough time, looking for a job just as those loan payments come due.

On the other hand, I know a young lady who did go to China, and delayed her employment search that summer. But she planned it out carefully. She made plans to live with an aunt in a city that had decent employment prospects for her, worked a few weeks before her trip to make sure she had some money for start up and for her loans as they became due. Though it did put her back financially as all such trips do, she had planned it out and was prepared instead of throwing caution to the winds and just hope it worked out.

juillet · 06-09-2009, 12:18 AM

Since you haven't yet graduated I'm assuming that you don't have a job lined up. Hold onto that money, and see what opens up next year while you are a senior. If prospects look good by the end of the year - you have a job lined up, good salary, etc. -- go ahead and take the trip. If prospects do not look good, you may have to live on the $2500 for a while.

fiona_ · 06-09-2009, 03:19 PM

You know.... I did ESL teaching for a bit and I know of the industry. As a native speaker (American) with a college degree, you would be in high demand as an ESL teacher in China. Teaching ESL in China isn't exactly problem-free or easy (huge classes, long hours, sneaky schools etc), but you might consider this to make some money on the side. Don't know if you'd be ready for the commitment entailed, though.

LongPrime · 06-09-2009, 08:50 PM

DS did China on BS with roommate and close friend. Spent a month in China and cost was nominal. He also solo travel western Europe after an India internship (had his return trip terminate in Paris rather than USA). Both trips he stayed at classmates' or internshipmates'.
He now returns the favors and hosts in Seattle.

He then and now could afford the travels. He does know how to squeeze the dollar. Takes after his parents.

The opportunity is a good way to seal friendships and build networks.