Is it worth it to have major student loans?

Question

My daughter can go to a local state university and live at home and get a good education. Or, she can take out big student loans to go to an out of area college. For those of you with big student loans to pay back, is it worth it for the experience of living on campus? Same education but living the college life style. Would you do it again?

Answer 1

It depends what field of study she is going into. If she's going to be a sociology major, I don't see taking out big loans as a good idea (because she will have a difficult time paying them back).

If she's going into business or computer engineering, that's another story.

I suggest splitting the difference. Go to community college for 2 years, earn an associate's degree. Transfer to a 4 year school, live on campus, graduate from there, and you get the same degree as someone who went there for 4 years (but pay half as much).

Many schools are easier to gain acceptance to as a transfer student, and some even offer scholarships to attract transfer students. You should check up on that.

Answer 2

It really depends on your daughter. I would recommend anyone who goes to college to live on campus the first couple of years, or even just the first year. It helps you build a circle of friends that will last through your college years. I was a Resident Assistant at my school and those students that lived there had a blast and loved every minute of it. I would definitely do it again if I had the chance. It can be a distraction simultaneously, so it depends also on how disciplined your child is. You only live once; might as well do it big whenever you have the chance. Plus, she can always go away for some time and if she doesn't like it, she can transfer. AND, you have a new area to visit when you do go to see her.

Answer 3

It depends on the college.

Is the "away" college a better fit for her? Will she likely do better there? If so, then the loans may be worth it.

Is the "away" college much better in reputation or academics? For example, are you comparing Framingham State College with, say, Harvard? If there's a huge difference in reputation or academics, then yes, the loans may be worth it.

If there's no real difference in rep or academics or fit between the two schools, then is there room for compromise? Could she go to the local state school, thus saving money on tuition, but live on-campus so that she gets the full college experience?

Answer 4

It would depend on your daughter's personality but most young people wouldn't want to live at home. I know for myself I was desperate to leave home to have my own life.

If it's anything like in the UK your daughter will be able to defer repaying her loan until her income gets to a certain level.

Personally I wouldn't do university again I would just have gone out into the world and lived my life, I was hard-working so I never had any free time.

Even when I wasn't studying I couldn't relax because I thought I should be!

Also my friends have always been older, I don't get on with people my own age so i have more friends now I'm out of Uni.

It depends if your daughter is doing a course that will definitely advance her career and lead to a better income.

I studied Classics, so even when I came out with a First I was starting out in the shop assistant jobs I could have got at 16 years old!

Hope this helps.

-Katyk

P.S. At some point you will have to relax and allow your daughter to decide these things for herself. Take some time out for yourself and don't worry. Most of your bit is done! Now you only have to decide for yourself how much you are going to bail her out if and when she makes mistakes.

Answer 5

I've never experienced living on campus but i have taking out a college loan. I'm sure my life would be different if i stayed on campus but i go to a 2 year college. It might be a good experience for your daughter. Taking out college loans can be helpful but i think its best to get grants and scholarships.

Answer 6

She will have to begin repaying the student loans six months after she graduates. This is something to think about. No I would not get a student loan again. I would settle for the home college. While the student loan is being deferred it is still accumulating interest.

Answer 7

It depends on what field she is interested in, and also the quality of the schools in question. If she is interested in a field that can make a decent salary, or the out-of-area school is considerably more prestigious, then I'd say go for it. If not, then it's probably a more prudent course of action to go local. Besides, her interests may change as she takes more courses.

As for the college lifestyle, I do think that it is very important since helps kids to develop a sense of independence, but whether going into heavy debt is worth the exchange, I'd say probably not.

Answer 8

If at all possible I would avoid the student loans. I borrowed and now I still have to worry about the payments after 10 yrs of trying to keep the payments up to date. These loans can not be erased by bankruptcy (had medical problems had to file) and the interest just keeps adding up.