Toughest Decision Ever: Debt or Deferral

[PrattIAFF]

I applied to several top schools of International Affairs, and I accepted an offer from George Washington University. Tuition is $28,000/yr, and they offered me $35000 toward the program (65% tuition reduction). I would still have to pay $22,000 for tuition, plus supplies and living expenses in D.C for two years.

I have $43,000 in debt from undergrad, and I'm looking at accruing another $22,000 for tuition, and at least $10,000/yr for living expenses... so under the best circumstances, I could possibly end up with $85,000 in debt, but likely closer to $95,000... This is with working at a restaurant job initially while looking for a job more in line with my career... Lots of debt and lots of stress.

There is always the possibility of getting funding in the second year, and I've located potential sources of $54,000... but again these are competitive and there is no guarantee...

I had applied for the Rangel and Pickering Fellowships, either of which would have covered all, or a substantial portion of tuition for any grad school, a living stipend, two generously-paid internships, and the guarantee of a job in the Foreign Service after graduation. I'm planning a career in government, and the Foreign Service is my "dream career." I was selected as a finalist for both fellowships, meaning I had a 50% chance of getting one of them.. After the interview and testing process, I learned that I was not selected for either of them... Of course I was extremely discouraged, but glad that I was selected as a finalist for both, and that I at least received some funding for grad school.

I want to reapply for the Pickering and Rangel Fellowships, defer admission to GW, and also reapply to a wider variety of schools in the hopes of getting funding.

Pickering and Rangel are not guaranteed, but I think my chances would be better the second time around... meaning no additional student debt, and a gateway to my dream career.

If I defer admission to GW, there is no guarantee that they will offer me the same financial package. And of course there is no guarantee that I would get a better deal from any other school.

So here's my dilemma: Deferring grad school for a year means risking a financial aid package that some people would be extremely happy to get. But it also offers the possibility of getting it completely paid for with two paid internships and a direct route to my dream career.

I know exactly what I want o do, but I'm not sure being saddled with that much debt is the way to do it... What to do?

[rising_star]

Defer. That much debt will be crippling as you try to enjoy your future career, especially since nothing is guaranteed.

[fuzzylogician]

What kind of salary are you expecting to earn after you graduate with the degree? You need to do the math to know how much you'll be repaying and what other expenses you'll have but my guess is, the debt will be a very large burden. If that assessment is on the right track, I'm with rising_star: defer and try to improve your financial situation before you take on this kind of debt.

[TakeruK]

I would also consider another factor: Is the financial package from GW their typical funding package for your program? That is, do you know if they offer it to everyone who they admitted? Also, how does that package compare with what other schools would offer?

"No guarantee" could just mean that they aren't able to 100% confirm that you will get the same support next year. But it could also mean that the funding was very competitive. I think that's a pretty big difference, since if it's their standard financial aid package then you're not really risking the money from GW. Unless they have a policy of not offering the same package to deferring students, or that 35,000 was won through an intense competition, if you won it this year, you have a strong chance of winning it again next year. Sure, it's risky, but so is taking on that much debt.

I guess my point is that how much risk is there of actually losing the GW financial package? If the risk is acceptable (or at least lower than going into debt), I think waiting an extra year is probably safer than risking 50,000+ in debt.

Edited August 8, 2012 by TakeruK

[PrattIAFF]

I would also consider another factor: Is the financial package from GW their typical funding package for your program? That is, do you know if they offer it to everyone who they admitted? Also, how does that package compare with what other schools would offer?

No the $30K is the second-highest award they offer (the other $5K was need-based aid)... Finding from GW Elliott School is pretty competitive... that's one factor that makes this decision so hard... I consider myself very fortunate to get that offer, but at the same time, I can't anticipate that I will immediately have a job that would support that kind of debt burden... y

One source of consolation is that a GW rep said that if I am one of the most competitive candidates this cycle, it's likely that I will be one of the most competitive for the next... But it kind of feels like my dreams are slipping away... a bit dramatic-sounding, but pretty accurate

[BrokenRecord]

*screaming* DEFER!

Though it may seem like you are a failure now, you won't believe how WORTH IT it is to take a year off, work, save up some money (you are for SURE going to need that little nest egg for relocation expenses) and broadly apply for other scholarships and even programs. If $50k isn't worth that, then continue with GWU. Trust me, I took an extra semester in school so I can intern another summer, revise my essay and get good letters and now in a fully funded masters program. That being said, I was lucky in the sense that my field is a pretty in demand technical discipline. You are in a VERY tough field and location to crack and your work experience will mean way more than the school you choose. Have you thought about applying to schools out west? I say that from experience (from NC going to WA state for grad school)--generally the better funding offers come from places outside of your region. Korbel School at the University of Denver is a very strong and respected IR school with top faculty and connects. But as always, distinguish yourself (learn a second or third language, create a strong online presence via blogging or social networking on critical IR issues, etc.)

[PrattIAFF]

Thanks everyone for your input... It's be a tough decision, but I have decided to defer for a year, reapply for more fellowships and programs. And already, other opportunities are presenting themselves for the next year... The disappointment is still there, but I have some peace of mind. So thanks a lot!!