Higher Education Can Be A Financial Disaster
Tue 17 Mar 2009 – 23.27
In what is fast becoming a recurring meme on this blog, we have to take a look, yet again, at the absurd financial implications of paying for a university education in this day in age. This article from Thinking on the Margin focuses on a couple who both attended law school on credit, and it didn’t really work out.
Whether you’re looking at an MBA, JD, or PhD — if you’re pursuing an advanced degree for financial reasons, chances are you’re better off either going part-time or else not at all. Otherwise, you may end-up financially strapping yourself for life.
I can relate. After finishing my MA, I’ve been pretty much unemployed for three years and counting. All the while, my student loans are still present and I still have to pay every month for that “priceless” knowledge and skills. Aside from rent (and I assume a mortgage, if I ever get one), my student loan payments are the largest bill each I have to endure each month.
There is some debatement about whether or not it’s urgent to pay off that debt. Most financial advisors will tell you that your student loans are ‘good’ debt, because you education, generally speaking, is an asset that will appreciate in value. That’s sort of a perverse way to look at it, but it makes sense. Nothing is guaranteed, of course. But the flip-side of that argument is that no matter how ‘good’ a debt is, it’s still a debt. It can affect your ability to get a mortgage, to get small business financing, and as we see from the case above, can be hell on a marriage.
I fear that soon we’ll be disclosing our debts on the third date — would you want to be with someone buried in debt? After all, if you end up married, it’s now your debt too.
Not to mention that whole net worth thing. Mine will be strongly negative for the next twenty years or so (at this rate, probably more than that).
posted by Scott in careers,education,life,personal finance.
2 Comments | Leave a comment »
I am thankful I had my education paid for but I can’t even bare the thought of someone going to med school and coming out with 50-100K in debt.
I mean have fun living under a cardboard box for years to come.
Comment by tom on Fri 20 Mar 2009 — 9.16 |
[...] twentyhood Posted by root 45 minutes ago (http://www.twentyhood.com) Most financial advisors will tell you that your student loans are 39 good 39 i fear that soon we 39 ll be disclosing our debts on the third date would you want to be with someone buried in debt comment by tom on fri 20 mar 2009 9 16 2006 2009 twentyhood a Discuss | Bury | News | twentyhood [...]
Pingback by twentyhood | debt solutions on Mon 15 Jun 2009 — 19.18 |
RSS feed for comments on this post. TrackBack URI
Leave a comment