Poll: Are you in Debt ?

[FalloutJack]

I'm considering taking a student loan, but have been discouraged from a few people saying how it takes years to fully pay it off or how you'll never be able to pay it off due to other expenses. so my question and discussion is, are you in debt and how as it effected you ?

You do not take a loan as a student. You get yourself onto a payment plan without adding extra money or interest to the deal. In short, you don't owe anything more than what you were going to owe in the first place, but you agree to pay at a minimum of certain installments over a period of time. This is the same as paying for a car or home. You don't get into any real trouble this way.

 

[Xanthious]

If you are thinking about going to school I wouldn't take a student loan. Depending on any number of factors you'd be amazed how easily it is to go to school for free or in some situations actually get paid to go to school.

The trick is you need to put in some modicum of work and look for grants/scholarships/random financial aid that you can qualify for. I have a good friend that went back to school in his early 30s and not only had the entirety of his school expenses covered but also cleared a few thousand dollars per semester above and beyond what he spent on school.

Seriously, student loans while certainly helpful to some can largely be avoided if you know how to navigate the massive amounts of financial aid out there that's free for the taking. If I were you I wouldn't even think about student loans until I did some serious research about what you can get for free.

As for the question of debt, the only debt I currently have is a car loan that I just recently took out that's going to end up a hair under 20k when it's all said and done. I have never believed in going into debt. I only have one credit card that I keep around just in case and I haven't had a meaningful balance on it since mid 2007. The bottom line is that debt is something that is best avoided whenever possible.

 

[Marcus Kehoe]

Right now I will have little debt through college, but when I hit Chiropractic school I will be knee deep in debt, likely hitting 6 figures.

 

[Owyn_Merrilin]

Dont the student loaning companies just say "Fuck it" after 7 years of trying to get their money and give up?

Something like that. If you haven't started paying in 7 years (I have to look up exactly how many, but 7 sounds correct) they quit, if you have started paying it off but haven't finished in 25 years (I'm just going to trust JoJo) they still quit.

It's not too bad and the loans aren't too big themselves.

I'm not sure what country you're looking at, but in the US the only way it times out is if you're working in some sort of public service position -- teachers, lawyers who work for the public defender's office, soldiers, and so on. Otherwise, you really could still be paying 26 years down the road.

Edit:

OT: I'm about $10,000 in debt with student loans. This is light, but thanks to a screw up on my part with my internship this term, it's about to get a whole lot bigger. The good news is I plan on using my degree to become a teacher. The bad news is screwing up a teaching internship is a /bad/ idea if you ever want to work as a teacher.

 

[Xanthious]

I'm not sure what country you're looking at, but in the US the only way it times out is if you're working in some sort of public service position -- teachers, lawyers who work for the public defender's office, soldiers, and so on. Otherwise, you really could still be paying 26 years down the road.

In the US you can qualify for a ten year IBR (income based repayment) forgiveness of student loans if you work in an area of public service. However, if you work in a non public service related field you can still qualify for IBR forgiveness after 25 years of paying your student loans. Understandably they don't go out of their way to advertise this to people. However, Obama recently passed an executive order that cuts the non public service IBR forgiveness down to 20 years.

 

[TechNoFear]

I am about US$50k in debit, but will pay that off by the end of the year. Then I will be debit free for the first time in over 20 years.

IMO debit can be 'good' and 'bad'.

'Bad debit' is a loan on a depreciating asset like a car, TV etc (always buy these type of things with cash or do not buy them).

'Good debit' is a loan for an asset, like property or self education / qualifications.

IMO the best investment you can make is in getting qualifications (ie increasing your skill base and so earning potential).

 

[Canadamus Prime]

Yes. I'll probably be paying off my student loans for the rest of my f*ing life. The worst part is that the time spent has basically amounted to nothing.

 

[Owyn_Merrilin]

I'm not sure what country you're looking at, but in the US the only way it times out is if you're working in some sort of public service position -- teachers, lawyers who work for the public defender's office, soldiers, and so on. Otherwise, you really could still be paying 26 years down the road.

In the US you can qualify for a ten year IBR (income based repayment) forgiveness of student loans if you work in an area of public service. However, if you work in a non public service related field you can still qualify for IBR forgiveness after 25 years of paying your student loans. Understandably they don't go out of their way to advertise this to people. However, Obama recently passed an executive order that cuts the non public service IBR forgiveness down to 20 years.

Huh, did not know that. I thought 25 years /was/ for public sector jobs.

 

[BOOM headshot65]

Lets see, I have $1,300 in my bank account, which while that may not be alot, it is WAY better than most highschool students.

 

[El Dwarfio]

I'm considering taking a student loan, but have been discouraged from a few people saying how it takes years to fully pay it off or how you'll never be able to pay it off due to other expenses. so my question and discussion is, are you in debt and how as it effected you ?

Here's the thing. A student loan is't a loan it's an investment.

It means you have to pay x amount of money for x amount of years, but it also means you get a cracking chance at an education.

Now the problem is too many people think that taking the loan entitles them to cruise though university, get some shitty degree at the end of it, land themselves an awesome job and never have to worry about money again. These are the people who complain they an't find work, don't have money, have outrageous debts, are the '99%' etc.

The reality is this, too make yourself stand out you have to work hard, you have to build a CV from day one, you have to get the top grades, volunteer, hold down shitty part time jobs, to extra curricular certificates / programs. And that work doesn't stop when you end university, you have to keep working at the top of your game to find jobs, make connections and build bridges. Only then will you get a job that means you no longer ave to worry about money.

You can still have fun at university (I know I did) but if your not prepared to do the work and put in the extra hours then its not always a sound investment.

[sub]That said, you could always take the loan, have th time of your life at uni, waste the rest of your life in a dead end job and then never pay it back [/sub]

 

[Tastum]

Yes, I have nearly $40k in student loans.

Five years back I had an... event, and I dropped out of school and messed up my academic record in the process. It took me another year to find a job, and a few more months to get caught up on my rent. At this point I had $14k in defaulted credit card debt in addition to my student loans (it's amazing how many fees they tack on, I didn't borrow NEARLY that much). That took me about two years to pay, but I paid it in full rather than declaring bankruptcy.

Last year I had to decide whether I should pay off all my student loans (would take me about 30 months) or finish off my degree instead. I chose the latter, and now I'm paying my tuition in cash while my loans are deferred. I only have two part-time semesters to go on my CS degree and despite the mess I'm in a good position to go to grad school too.

There's no reason to believe, as some in this thread have said, that student loans are a specter over your finances for your entire life. A little discipline and the debt can be paid. Years of living like a poor man despite a healthy salary gave me a healthy distaste for debt though, and I'll be doubling down and paying those loans off pronto after graduation.

That's my plan anyway - homeowner, no mortgage, no student loans. All it takes is patience.

 

[russkiimperial]

Thing with going to debt for college is be realistic about what kind of money you'll be making once you graduate. Let's be honest, most humanities/liberal arts degrees will not necessarily translate to high income. This is coming from someone who majored in History and had to go back after graduating to get more marketable training (and debt).

I'm 2+ years into a 10 year repayment plan for my loans. It's HARD on your monthly budget but you save a ridiculous amount on the accrued interest if you can swing it. Just my two cents.

 

[Kennetic]

I've never really been in debt. I have a credit card to try and build credit but I never use it. I don't buy anything unless I can pay for it outright. Got back from Iraq and bought a motorcycle and an SUV with cash. Bought the bike with a debit swipe lol

 

[SomebodyNowhere]

after I paid off my car that basically eliminated any of my standing debt.

 

[DazBurger]

No, never taken one, but aint rich at all...
Here in Denmark, the state pays people who studies a fixed amount of money and offers small cheap apartment you can live in as long as you are under education.
You also gain percentages off public transportation, travel and some bars.
All this on top of free education, even universities.


Why would I want to take a loan?

 

[The Heik]

so my question and discussion is, are you in debt and how as it effected you ?

Am I in debt? Yes and no.

Technically, I'm currently taking loans from my post secondary education. However, the reason why I am taking them is because in paying them off I can widen my financial options. I currently could pay off every cent I owe, but in removing my "debt" in the monthly payment format, I can get a good credit rating without actually putting any "real" cash at risk. That means that when I need to take out a bigger loan for things like a down payment on a car or house I get better options and deals for the money I receive. So in short, I'm just planning long term.

 

[Chemical Alia]

I recently had over $90,000 in students loans, mostly all coming from grad school. Mostly over 6% interest, and around $25,000 was over 8%. I paid off over half of it this month and plan on paying off the rest within the next year and a half. The interest rate is so high, I'd be paying forever if I don't eliminate it sooner rather than later.

None of this would be possible without TF2 hats. :C

 

[jetriot]

Subsidized loans in America are a pretty sweet deal if you qualify. The value of the loans is always in your favor at such low interest rates. Especially when we see inflation start to skyrocket as the nation attempts to pay off its own debt(I wish I could pay off my debt by printing more money).

 

[Brutal Peanut]

My spouse and I are not in debt in any way (home, vehicle, credit card etc.), whether together or separately; and we own our own home. It's nice. Now we actually see gain in our balance, instead of subtraction. Also not having children helps and gives us an increased amount of disposable income for small luxuries like video games, video game memorabilia, day-trips etc.