Saying 100K in undergraduate loans is never worth it is like saying a $400 dinner for two is never worth it or a $1000 handbag is never worth it, or that German car… etc. For many people, that exist in a different leagues or mindsets, that price is certainly worth it and not a big deal. How can anyone draw a line that 20k-30k in college loans is ok but some other figure is not? A year at the priciest college is the price of a low end luxury car or loaded SUV nowadays (which I see a lot of on the roads) - it seems like a year of college is a great way to spend money or borrow for - it lasts much longer than those vehicles.
I listened to a someone tell a customer that everyone in her neighborhood was sending their kids to CC rather than a four year cause it worked for all the parents that live there, so why not…but what she didn’t understand (blissfully) is that many wouldn’t want to live in her neighborhood, but she didn’t get that. Call it snobby or just different standards, whichever, but truth is, some people can’t understand thinking so small, while apparently others on here, can’t understand thinking big.
I know plenty of students who owed 100K or whatever amount and began with a 6 figure income right out of college and had no problem paying off loans. Or their parents are sitting on real estate that cover it easily, and timing wise it makes more financial sense to borrow than part with the cash. Or the rich grandparents assets that will soon or someday be theirs. We don’t know the background of this OP at all or many that post on here. Limiting their possibilities with personal opinions is so small minded. There are many people that think differently and this isn’t 1954. But then again, after a recent trip to another part of the country, it did seem like 50’s in many places. No growth, no progress, very sad. I wish the banter of financial judgement on here wasn’t so strong, it really does a disservice to the forum. Sharing knowledge is great, but telling people what to spend and not spend, particularly when it isn’t even being asked for is the worst, and shows insecurity or inexperience at best.
Completely irrelevant examples. The whole point of 100k in loans for college is that you can’t afford it. It’s taking out loans so you can later pay with an income that does not exist yet. If it were not a big deal, then the student would just be full pay.
I actually said 175k in loans is never worth it. To me. Others are absolutely entitled to a different opinion. Based on what information was provided it is what OP may be looking at. To pay off 175k in undergrad loans over 10 years at 4.25% interest OP would be making payments of around $1,800 a month.
Or buying 3 luxury cars, not one.
So, if OP can land a job that pays $215k a year, no problem on the 175k assuming that the parents sign off on the loans in the first place. Or sure, 100k in loans for a 100k job. Except OP needs a lot more than 100k for the schools in question and the major isn’t one that lands 100k jobs with an undergrad degree. I too would like to know what major it is that does.
I know plenty of people with 6 figure incomes still paying off their grad school loans and wouldn’t classify it as “no problem”. Banking on rich grandparents assets or parents real estate ??? Ick.
Only the OP knows their financial situation and their families debt tolerance.
This case where the parents have the assets to cover the loan but do not want to liquidate an asset right now is unlikely to be the common case when students and parents are considering parent loans or parent-cosigned student loans.
If you buy a $50k car every year for 4 years, you have 4 cars!
I think college may be worth some debt, but how much? If you have $100k in debt, you are going to be tied to that debt for a long time. 10% of your income in repayment for 20 years or so, maybe more than a house payment t, but you have no house to live in.
A $400 dinner or $1000 handbag is not going to set you back for 20 years. An expensive German car is collateral for the loan. It is has resale value if you decide you cannot or do not want to continue payments.
A $100k unsecured student loan is forever. Non dischargeable in bankruptcy. No resale value. It is a lead weight chained to your ankle. A 20 year $100k loan means paying $660 per month, every month until you are over 40 (ancient).
The OP wants to be a forensic investigator, not a petroleum engineer.
100K in debt for University of New Haven? For a career in the public sector with a starting salary of 50K AFTER a Master’s degree, or 65K AFTER a PhD… where it will take a decade of full time employment to break 100K?
ScotlandCalling- do the math. Then come back and talk about handbags and fancy dinners.