Should I borrow more money for school?

Question

I've done some crunching on my expenses and I've got to make some hard choices. I've just started a program for an MA in history. My BA is in the same thing. However, it looks like I won't be getting much financial aid, except for loans.

I don't think I can work a full-time job and succeed in grad school. I successfully did it during my undergrad, but grad school takes more concentration. I have enough in savings to last 2 years if I work part time. At the completion of my master's I'll be about broke.

They're offering me $8500 a year in loans, which is about what I need for school and rent. But then I'd be adding $17k to the $10k I already have in student loan debt.

Or should I go to work full time, save some money, and come back to school?

Answer 1

I wouldn't take out any more loans if I could avoid it. I had about $20,000 worth of student loans that I had to pay off when I graduated college a decade ago. Despite what I was promised by the school, I wasn't able to find the great job that I heard was waiting for me. In fact, I couldn't really find one that related to my degree because many employers didn't think I had enough job experience or they were looking only for more qualified candidates. Instead, I've been working at whatever jobs I can get. Fortunately, I was able to get rid of the loan debt through an inheritance but if I were to do it over again, I would have saved the $20,000 and either taken classes at a cheaper university or continued working at what I was doing before. I really am not that much better off today. By the way, my degree is in a technical field.

Answer 2

John M is absolutely correct. What kind of position and salary will you have when you complete that MA in history?

That's a lot of debt. Do you have to take the whole $8500 each year? If you have enough savings for two years, why not take out a much smaller loan each year.

Frankly, being broke with a new degree is better than being broke with a new degree and $17K more in outstanding student loans.

Answer 3

Most people would say don't do it, but I disagree. If you stop to save up money there's a good chance your motivation to go back will decrease. If you know this field is definitely what you want to do, get the loan and finish your degree now. I'm surprised you only got for $8500 for a grad school loan; I was offered around $9000 per semester. if you are really concerned about it, take the money but don't use it until you graduate or until things get really tight.

Answer 4

I think this depends a lot on your major. If you're going into business and think you'll be successful, then no problem. Engineering and few other fields are also good choices because you'll be able to pay off the loan relatively quickly. History? Do you plan to teach? What are you going to do? Consider HOW and WHEN you'll be able to pay it back. If you're getting you degree in humanities with no solid job prospect in sight, it may be better to work your way through, no matter how long it takes. Debt sucks!! And it can hang around for a long, long time, not to mention ruin a marriage, make it harder to buy a house, car, etc. Just some food for thought.

Answer 5

what kind of a job to you expect to get when you graduate? If you have a pretty clear idea of what work you'll be getting and what it will pay, you can do some math and figure out if its worth the extra debt. But if you went to grad school to delay entering the job market, and don't have a clear idea of what kind of work you would enjoy or can reasonable expect to get, then I would try to minimize the loans until you do have a better sense of your earning power once you graduate

Answer 6

Take the loans, put it in the bank let it earn interest. When you are done with your MA, you can repay the borrowed amount at once and keep the interest if you didnt spend any. Work the part time and use your savings..... With your MA you will earn more moeny to save and be back to where you were in no time.

Answer 7

Your education is worth the debt. I just completed my MBA and taking the loans out was worth it. Even if I default, they can never take away my degree.

As for working and going to school, I would recommend working because most Master's programs understand that people do work (but not all) and may be a little more forgiving, but it is what you think you can handle.

Answer 8

Student loans (like a Stafford loan) don't have to be paid back until after graduation. also, if you become a K-12 teacher, most states forgive paying back loans.

Answer 9

Yes.