How do you be mindful of debt without being overwhelmed? I'm abroad&stressed?

Parents Forum
1

I’m a first generation college student. I have a private scholarship of $6,000/yr and I get the max financial aid. I’m studying abroad this year as a sophomore year and set to graduate on time.

My first year I borrowed the max $5500 in federal loans.
This year I borrowed $12,000 from max student loans, plus my ‘parent’ took out an $8,000 Parent Plus loan for me. But she’s 70, not in good health, and we both agreed to make me responsible for that loan.

My school has made a new rule that started this school year that all students pay the same price regardless of credits. Upperclassmen tuition used to be increased.

Next year, I’m going to have reduced expenses. My first year, my dorm, laundry, and meal plan cost $10,860. Living off campus, my apartment and utility bill will be $550/month ($6,600 a year) and it comes with a washer and dryer.
Junior and Senior year I will need to borrow $4,000 each year.

I know students who make that in a year by working so I’m hoping I won’t need to use all of it but I can’t guarantee I’ll find a job because I couldn’t find one freshman year (I got a work study in the Spring but it was off my campus and only $500 the semester).

So basically when I graduating I will have borrowed $28,000 which is less than the national average which is up to $37,000 a year now. I’m hoping to find a way to pay some of it down, especially the Plus loan because the interest is higher.

But I find myself in Spain worrying daily at this point in the semester. I should have studied in a cheaper city or worrying about the $50 jacket I bought in Venice when I already had one, I just didn’t pack one warm enough. Or worrying about wasting the $11 tour ticket I bought in Amsterdam because I’d already been to a different tour and I was too tired to go so I wasted the ticket.

I shouldn’t be fretting over things that are now out of my control. My program is paid. I went to 9 European countries this year, and more cities than I can count in this moment. I went to Morocco this year. Some families I know spend $5k on a vacation and I borrowed $8k more than I would have at home and am learning a second language, seeing and learning more about the world. And I know one day that loan will be paid off and I will be scolding my 19 year old self for worrying about it every second. Any advice?

2

You know this, which is good, this yet you still worry.

Since you are mindful about the debt, then you are responsible and don’t need to worry.

Stop living in the future. Live in the present and focus on what you need to do today. Do the same tomorrow and the next day, etc.

In 2004, the Boston Red Sox were down 3 games to zero in the league championship series against their rivals the New York Yankees. A gloomy winter was approaching and it looked hopeless. Their manager, Terry Francona, told his team to “win today”. They won that day. He said the same thing the next day, etc. They beat the Yankees 4 games straight, and went to the World Series and beat the Cardinals 4 straight never losing again.

Win today!

3

If your goal is to stop worrying, try telling yourself that it is done and you have gotten a lot out of it. You went to great cities and it was worth it. It sounds like the worrying is a result of second-guessing your decisions, so just run some tapes that reinforce your good decisions. For example, this is great. I’m getting a lot out of it. I’m learning a second language. I got to go to Venice. This is so worth it. It’s once in a lifetime experience, which it is. Few adults with jobs get to study abroad.

In terms of worrying about the extra expenses – e.g. $11 on the ticket. Write it off as a loss. It’s done. Move on.

Instead of worrying about what has happened, put your focus on now and the future. It sounds like it bothers you to waste money, so the next time it looks like you are going to spend money unnecessarily, don’t do it. It takes practice to learn to be frugal, but the more you do it, the easier it becomes. And I think the real issue will be after you graduate that you live frugally so that you can pay off your loans quickly.

4

Your college education should enable you to join the workforce after you graduate, so I would assume you will not have a hard time repaying your student loans. I wouldn’t stress about that now, your loans don’t amount to a scary sum. At least to me, as an adult/parent investigating how much it’s going to cost me to send 4 kids to school, I would say your obligation is very doable! It’s the cost of a car, not a house, which is what many people graduate with. Enjoy your current situation and just look forward to what is ahead for you.

5

Never, ever regret paying for experiences. That is what you’re getting for your money this year. You will never have another opportunity to do what you are doing for so little money. Enjoy yourself. Eat well, drink well, take those tours, learn the language well. And don’t forget to really engage with the people in your city. So many kids use their study abroad year as travel time, which is great, but they miss out on really learning the culture of the country they’re based in. So make some Spanish friends before you go.

And yes, you will eventually pay back those loans. It took me 10 years, and it was almost painless.

6

I agree with @Massmomm - you may never be able to return to Spain and experience what it is like there - don’t let your regret be that you didn’t allow yourself to life it to the fullest. In 20 years that $11 will be meaningless but you might regret not doing the tours in 20 years

7

You should be able to pay off 30K of student loan fairly easily with a job. I wouldn’t worry about it.