I’m planning on going into accounting so I will be getting a bachelors and a masters degree. After both of these, I will have about 55k in loans. Will this be an overwhelming sum if I have a starting salary of 40-45k? Has anyone gone through a similar situation? Thanks.
Remember those loans are racking up interest so the total might well be over $55K. Nice to have plans, but more than half the kids I know who have such plans end up changing their minds. I know a lot of kids over 30 years who planned on going into lucrative fields that simply did not, but they still had the loans to repay.
What will the undergrad portion be? That’s what I would worry about for now and that is stage one debt, you are tied into it but not to subsequent debt. You can decide on stage two when you are a more mature 21yo. And have better grasp on what debt is about and how much you might be able to earn summers etc.
Are you no longer a bio major who wants to go to med school? See, worry about the undergrad debt is manageable in case of major nor career plan change up.
The undergrad portion would be $27,000. However, I need the masters to get the 150 hours required for the CPA. I never ended up majoring in biology since med school didn’t seem realistic.
I think I could manage 27k with interest, but I am not sure. I would like to know if I will be able to afford rent and basic necessities with this debt and income.
You can help yourself quite a bit if you make interest payments annually so you don’t capitalize it. And also if you try early for internships and relevant jobs you might earn enough to take less loans. Also look for and apply for scholarships each year, some professional associations give them.
But that is a 630 monthly pmt, that you would want income of 75k if you pay ten pct of income. I guess you will have to live like a student for awhile. Or with internships you can get a better job.
I’m definitely going to apply to lots of internships and jobs. Thanks for the advice. I doubt I’ll ever get a salary near 75k though.
Instead of pursuing the master’s immediately as a full-time student and paying for it entirely with loans, work a couple of years and see if your employer will help pay for that degree or study part-time and pay out of pocket. Those plans could also get you to the total of 150 hours without leaving you up past your eyeballs in debt.
Thanks happymomof1. Is it normal to wait a couple of years before getting the CPA?
Yes, it is normal for people to work a few years and then pursue the CPA. A friend just got his masters online, completely paid for by his employer.