Overwhelmed by loans

[oceangirl389]

I recently graduated with my B.S. in Communicative Disorders & Sciences. In this field (Speech Language Pathology/ SLP) you have to get a Master's degree in order to practice. The job placement rates average 95-100% within 6 months of graduation, and many I know have offers before they graduate.

I applied to 6 schools, was accepted to 5-- Pitt, UConn, GW, JMU & West Chester (PA). I received no funding offers (every school said this was the most competitive year they've ever seen...I have a 3.7 GPA, TA & research experience, 1260 GRE). GW was my top choice, but it's crazy expensive, as are UConn & JMU for out-of-staters. Pitt is ranked #8 in the field, and is outstanding as far as resources and clinical oppotunities. West Chester is ranked #144 and their program was recently under national accreditation review for it's program being too lenient.

So the choice seems like a no-brainer, go to Pitt. But the catch is, Cost of Attendance is $40,000 a year for two years, plus $13,000 for the summer. That's $93,000 to cover tuition, books, fees, housing, everything for two years. Average starting salary is $58,000 for SLP in health care setting. I already have 25K in loans for undergrad, and I'm terrified that I'm going to be drowning in this debt once I graduate. I know there is some loan forgiveness through employers, but do I have any other options before then? I'm very good at budgeting and saving my money, but I'm feeling overwhelmed just thinking about this.

Any advice would be greatly appreciated!!

[kbui]

That's a lot of loans, lol. Personally, I won't be able to afford any school without funding from SOME source. My scholarships have pulled me through for 4 years, counting 5 years, now. I was looking up programs that have loan forgiveness programs, and here's the website that provides some useful advice: http://www.finaid.org/loans/forgiveness.phtml.

I also heard about government student loan forgiveness programs: http://projectonstudentdebt.org/files/pub/Loan%20Forgiveness.pdf.

I'll be looking into these resources in the near future, but just thought they may be of help.

[oceangirl389]

thank you, those are helpful sites! (although neither of those links went to a specific page)

[Spore]

Try to get in state residency in PA.

You can do this in several different ways:1. get married in PA; 2. Have a domestic partner that has a job in PA; 3. Defer for a year and move to PA in the meantime...

Or defer and get a job at Pitt and go for the degree part time.

I also was accepted to Pitt Public Health and though I am living in Pittsburgh now, I am considered out-of-state.

I chose not to attend Pitt.

90K is a heck of a lot of money.

[bjlowe]

I completely understand your feelings. Although I'm in a different field, global affairs, my situation is very similar. Undergrad debt, NYU for grad school, and a career that will have a modest salary.

I can't help but wonder if this insane amount of debt will be the defining characteristic of our generation? How can we buy houses or start families if we are repaying these loans in our 20s/30s? But it doesn't seem like anyone let's this debt stop them from pursuing degrees to get the careers they want. Maybe my biggest comfort is knowing that many others are in the same situation.

So best of luck to you! I'm also taking a scary leap into debt in hope of developing my professional life!

[oceangirl389]

Thank you all for your kind words. Luckily I am a PA resident, which made Pitt the most affordable option. Tuition alone is about 22K, but Cost of Attendance is what you end up taking out loans for (unless you're lucky enough to have parents that will front the additional 18K they estimate you'll need for books, rent, transport, etc.). My parents were a huge help with my undergrad, I've been very blessed with that. Like you said, bjlowe, it seems like everyone else is in the same boat, and thankfully I have a pretty strong outlook as far as job security goes. It really is ridiculous how much it costs to get a good education these days.

[long_time_lurker]

If living at home is a possibility why not do that and commute to West Chester, or wait until next year and apply to schools in Philly and commute there. Even if your parent asks you for $100 a week for room and board that's way less than it's going to cost to live in Pittsburgh or DC if you did GW.

[ltam]

If it's possible to defer your offer I would live with family and work for a year to save money as well as try and complete the program part-time while simultaneously working.

100k is a lot to take on in debt though it is not unheard of. My friends in law school without family support will certainly come out at least 80k in debt when all is said and done.

[ImGrumpy]

Living at home a year and working would certainly help. Another option is plan to get a job after you get the degree in a geographic location where you have family who will let you stay with them for a minimal cost. Yes, it will affect your social life. And it will present its own stress levels living at home again. However, the amounts you could save could lessen the financial stress tremedously.

I have an acquaintance in the same area that did just that. Got several job offers before graduation. Even though the pay was a little less "back home", she chose that one because the cost of living was also lower plus what she would save living at home made a huge difference. Left her fiance (who was still in school and acquiring his own debt) and moved back home. Is at the end of the first year and plans to stay 6 more months. She will start marriage with a nice amount in emergency savings, her undergrad loans paid off, and only her graduate loans left. It will make a big difference in how they will be able to live when they start their new life. An unexpected benefit is she and her Mom have actually become closer since they now both work in a medical setting and can bond over their experiences. Wouldn't have happened if they weren't together at the end of the day.

[PrattIAFF]

For all of those concerned with the mounting cost of higher education and the rising necessity of student loans to finance it, please sign this petition:

http://signon.org/sign/support-the-student-loan

Since 1980, average tuition for a 4-year college education has increased an astounding 827%. Since 1999, average student loan debt has increased by a shameful 511%.

In 2010, total outstanding student loan debt exceeded total outstanding credit card debt in America for the first time ever. In 2012, total outstanding student loan debt is expected to exceed $1 Trillion.

In short, student loan debt has become the latest financial crisis in America and, if we do absolutely nothing, the entire economy will eventually come crashing down again, just as it did when the housing bubble popped. Reasonable minds can disagree as to the solutions, they cannot, however, disagree on the existence of this ever-growing crisis, as well as the unsustainable course we're on towards financial oblivion.

As a result of more than 30 years of treating higher education as an individual commodity, rather than a public good and an investment in our collective future, those buried under the weight of their student loan debt are not buying homes or cars, not starting businesses or families, and they're not investing, inventing, innovating or otherwise engaged in any of the economically stimulative activities that we need all Americans to be engaged in if we're ever to dig ourselves out of the giant hole created by the greed of those at the very top.

Now for the good news: there's finally hope on the horizon! Representative Hansen Clarke of Michigan has just introduced H.R. 4170, the Student Loan Forgiveness Act of 2012, in the House of Representatives - legislation designed to lend a helping hand to those struggling under massive amounts of student loan debt.

For a brief summary of H.R. 4170's main provisions, please copy & paste this URL into your browser: http://tinyurl.com/7akydbk

To read the full version of the actual bill itself, please go here: http://tinyurl.com/6txure8

To read answers to some of the most frequently asked questions about the Student Loan Forgiveness Act of 2012, please go here: http://tinyurl.com/8xh4csd

Student loan debt has an undeniable and significant suppressive effect on economic growth. The Student Loan Forgiveness Act of 2012 directly addresses this enormous boot on the neck of the middle class and represents a glimmer of hope for millions of Americans who, with each passing day, find that the American Dream is more and more out of reach.

Therefore, we, the undersigned, respectfully request that Congress bring H.R. 4170, the Student Loan Forgiveness Act of 2012, up for consideration and commit to holding a straight, up-or-down vote on it this year. Thereafter, we, the undersigned, respectfully request that President Obama sign this legislation into law.