Debt Dumpers - 2018

[Jen and Ashwin]

No one needs to spend $100k on a bachelor's degree. That's ridiculous. A lot of people underestimate the value of doing 2 years at a community college and transferring to a 4 year university. All those basic classes can be done for pennies, compared to 4 year university school costs. I should have done that myself. My sister did that.

Regardless, I graduated with under $20,000 in loans. Got a Bachelor's from very highly ranked University of California campus. I used my part time job earnings to pay for books and part of my tuition every year.

Also, what year did you graduate? I bet if you adjust that $20k by tuition + room and board inflation since you graduated that you would find it to be a lot more in real dollars today. I saw a graph that showed the change in minimum wage versus the inflation in the cost of college and it basically said that expecting kids to work through college and come out the other side debt free wasn't reasonable, even when doing things like attending community college and transferring to a 4 year university.

ETA: I think this is the article: https://www.buzzfeednews.com/article/gregschoofs/how-much-college-did-your-summer-job-pay-for

 

[Sarah'sMomfrom PA]

I lurk on this thread because you guys are great and I have learned so much. That being said, we did not pay for my daughter's 6 year education in Pharmacy school. My husband lost his job and became disabled in her freshman year of high school and it took a while for him to get disability (3 back surgeries and a dropped foot) so it was just my income. We had a small 529 that helped to pay for the 1st year and she received a few scholarships but not nearly enough to come out of Pharmacy school with no debt. She was accepted at 6 pharmacy schools and picked Boston even though we had a pharmacy school not 20 miles from our house (she went to Pharmacy school at the 2nd oldest pharmacy school in the nation). Unfortunately, the school was landlocked and only had dorms for freshman so she got an apartment near the school her 2nd year and her roommate turned out to be quite crazy and as a result, her grades were starting to slip (and her school based admission to pharmacy school on maintaining a certain GPA) so for years 3 thru 6, she had her own apartment. The apartment cost $1850.00 per month but we did give her a credit card for groceries and paid for her cell phone and she didn't go crazy spending on either. Having a part time job was out of the question due to the amount of reading and science courses that she had to take so we told her that we would sign parent plus loans for her but she would be responsible for their payment after graduation. She was fortunate to have 7 job offers prior to graduation (she has her doctorate in Pharmacy) and chose to work at a major chain as a Pharmacy manager in Virginia. She came out of pharmacy school with student loans of $249,000 and makes a very large payment every month but she is very fortunate that she makes good money and is able to work in a field that she loves and strives to make a difference in her patient's health.

I also agree that Community college is almost impossible (not entirely) when trying to get into a PharmD program. My DD was accepted at the University of Pittsburgh in the pre-pharmacy program and in the second year of school, you had to apply to get into the PharmD program with everyone else in the state and nation who wanted to go there so there was no guarantee that you would get a spot. There was definitely an advantage to going to a school where you were automatically in the program if you kept up your GPA. I think knowing that my dd's future was on the line if she messed up and failed a class allowed her to be the responsible adult that she has become. Do I wish we could have helped her with the loans yes of course but she is our only child so if anything ever happens to her dad or I, I already told her that she should put that towards her student loans (not that we plan on going anywhere too soon!!)

 

[DLgal]

Also, what year did you graduate? I bet if you adjust that $20k by tuition + room and board inflation since you graduated that you would find it to be a lot more in real dollars today. I saw a graph that showed the change in minimum wage versus the inflation in the cost of college and it basically said that expecting kids to work through college and come out the other side debt free wasn't reasonable, even when doing things like attending community college and transferring to a 4 year university.

ETA: I think this is the article: https://www.buzzfeednews.com/article/gregschoofs/how-much-college-did-your-summer-job-pay-for

I graduated in 2000. Costs haven't gone up that much since then. Tuition and fees comes in right under $15000 currently. My school didn't offer housing after freshman year at the time, so that's what my parents paid for. I rented an apartment with 2 other roommates and it cost about $5k/year for my share of rent and utilities. Tuition back then was around $7500/year. So it has doubled in the 22 years since I started. That's not that bad, IMO.

I don't disagree that it is impossible to come out debt free these days, but I also don't think you need to come out $100k in debt for a 4 year undergrad degree. This is the crux of my opinion that undergraduate degrees are largely a scam at this point. They are absolutely never worth that kind of money. It's the graduate degree that will actually make you increase your earning potential over your lifetime. I'd go $100k into debt for graduate school at a highly ranked school. That's a gamble that will pay off later almost every time.

 

[Sarah'sMomfrom PA]

Forgot to add that my mom and dad both worked at the same university and I got my B.S. degree for free except for paying for books (I lived at home) and to be perfectly honest, I really didn't appreciate getting out of college debt free until I saw the loans that my daughter has.

 

[jen7233]

I honestly would have no problem funding 100% of my children's tuition including grad school, if we could afford it. However, I'd have to draw the line somewhere because our retirement focus would have to take priority, so that's why I'm thinking we'll do the undergrad for my two kids still at home, and if they go beyond into grad school, no we can't. I have to be honest, we are just not that fortunate to have any outside help at all, no parents are giving us anything, can rely on zero help from anyone but the two of us for college for kids, etc., so we'd have to do what we could but yet not sacrifice a comfortable retirement.

 

[FQLover]

Absolutely, Jen. Grad school can be paid for via graduate assistant-ships. You need a large public university for that; privates do not do those. I did not get a single loan for grad school. The work I did in exchange for tuition was terrific on my resume and led to several jobs afterward. The (very small) stipend I also received allowed me to live like a poor church mouse but with no loans needed. My program was three years long.

 

[KSR0330]

Peeps. I have a completely "unfashionable" question. It's hugely unpopular. Like, I'm expecting hate and discontent and "How could you even ask that?!" raining down on my head. But I have to ask.

For those of you who have kids in college or had kids in college, did you fully pay for their tuition? Did you have rules about it (keeping a certain GPA)? And the most wicked question of all: did your kids ask or expect you to pay?

I'm honestly curious. I have kids headed that way. I paid my own way, grants and scholarships helping. My parents helped for books sometimes, but it was squarely on my shoulders, so I felt the pain if I did poorly in a class. I never expected them to take out a loan for my college, but it seems like that is the "norm" now.

I paid for all of my college: bachelors, masters and then more for certifications that I got. It almost killed me financially. Because I had such high student loan bills, I had to use credit cards to live and I racked up huge cc debt. I'm just paying all of that off now (I'm almost 50). I don't blame my parents; they weren't in any financial state to pay for my college. I don't want that to happen to my kids. My youngest just started at an expensive out of state private school (truly feel that this is the best college for him and am happy with this decision). He will pay about 5,000 in student loans per year and I will pay the rest. I'm okay with that because I know how having thousands and thousands of dollars in student loan debt impacted my life. You may ask, why not a state school? They just weren't a good fit for him, so it's not worth it to me. He did get a lot of aide in academic scholarships, and I made it clear that if he slacked off and lost those scholarships, "we'd have a big problem".

 

[comicguy]

I was able to take 3 online classes this summer at a cost of $500 but I will get a salary boost of $700 dollars per year for the remainder of my career! (14 more years so almost an extra $10,000!!) Not too bad of an investment. It will net an extra 28 gross per paycheck but that will increase will be going directly to 403b!

This will max out the educational benefit increases. Just down to yearly raises which are negotiated via contract, the next 5 years nothing less than 3.25%

We will also be officially signing over DS car to him next month (we gave him the car after college graduation, he has paid maintenance but we have continued to pay the insurance so he could focus on his student loans) so we will see an insurance rate reduction. Since he is getting married this weekend and he is fully "adulting" now with a career job and everything, he can take over the insurance. I am guessing it should save me about $1200

 

[Jen and Ashwin]

I was able to take 3 online classes this summer at a cost of $500 but I will get a salary boost of $700 dollars per year for the remainder of my career! (14 more years so almost an extra $10,000!!) Not too bad of an investment. It will net an extra 28 gross per paycheck but that will increase will be going directly to 403b!

This will max out the educational benefit increases. Just down to yearly raises which are negotiated via contract, the next 5 years nothing less than 3.25%

We will also be officially signing over DS car to him next month (we gave him the car after college graduation, he has paid maintenance but we have continued to pay the insurance so he could focus on his student loans) so we will see an insurance rate reduction. Since he is getting married this weekend and he is fully "adulting" now with a career job and everything, he can take over the insurance. I am guessing it should save me about $1200

Congrats to your son on the wedding!

 

[imbatman]

Well, the DD's car gave up the ghost. I offered to fix it (it's my old car) or we could look into a small loan and she'd own the vehicle if she made the payments. It is a safe option for her, that we would hold the small loan. And we went over interest and terms and payments. Mind you, she's nearly 18. AND, she hates my old car. Out of the blue last night, my coworker (who has no ideas about our car woes) sent me a text that her neighbor was selling his car. It's exactly the price she can afford and they have a binder with every single oil change and service since it was bought.

Today, we will be signing a small personal loan and she already went out and got a second job to cover payments. Now before I get the "how can you?!" comments, she could graduate in December, but is choosing to delay one class so she can get community college for nearly free while she's in high school. She only goes to school two days a week and has a two hour a day nanny gig. She went out and got this job on her own because she wants to have money "just in case" and so that she can pay off the loan more quickly.

Seriously, I'm beyond proud of this girl. She's both excited and serious. I am too, but it's nice to give her wings in a safe loan. I'm only bummed that it won't show on her credit to help build it.

So, I guess this shows as a new debt for us. It's a 3 year term, but she's shooting for 13 months to avoid the prepenalty.

 

[jen7233]

Well, the DD's car gave up the ghost. I offered to fix it (it's my old car) or we could look into a small loan and she'd own the vehicle if she made the payments. It is a safe option for her, that we would hold the small loan. And we went over interest and terms and payments. Mind you, she's nearly 18. AND, she hates my old car. Out of the blue last night, my coworker (who has no ideas about our car woes) sent me a text that her neighbor was selling his car. It's exactly the price she can afford and they have a binder with every single oil change and service since it was bought.

Today, we will be signing a small personal loan and she already went out and got a second job to cover payments. Now before I get the "how can you?!" comments, she could graduate in December, but is choosing to delay one class so she can get community college for nearly free while she's in high school. She only goes to school two days a week and has a two hour a day nanny gig. She went out and got this job on her own because she wants to have money "just in case" and so that she can pay off the loan more quickly.

Seriously, I'm beyond proud of this girl. She's both excited and serious. I am too, but it's nice to give her wings in a safe loan. I'm only bummed that it won't show on her credit to help build it.

So, I guess this shows as a new debt for us. It's a 3 year term, but she's shooting for 13 months to avoid the prepenalty.

She sounds like she's doing great! No way would I say how can you! I actually did the same thing this year, went through a car issue with DD, with a lot less favorable situation then what it sounds like your DD has because she's just 18 and that's doing quite well for that age!

 

[pblack]

DH and I went to Texas over the weekend to visit my BFF and there is a Disney Outlet store about 20 minutes from where she lives. Needless to say....I had to go. I ended up buying a total of 5 items for $52. They had some of the Christmas pieces that I wanted last year from the parks, but I just couldn't pull the trigger on spending the money for them in the parks. I just had to share in my excitement! (Disclaimer: not my pictures.) I ended up buying two of the bowls so I can give one to my sister in law for her birthday. I also bought a stuffed Meeko ornament since he's my favorite from Pocahontas.

ETA: We didn't spend a whole lot of money out there, so this splurge wasn't really out of our budget. We kept costs down in other places.

 

[amalone1013]

DH and I went to Texas over the weekend to visit my BFF and there is a Disney Outlet store about 20 minutes from where she lives. Needless to say....I had to go. I ended up buying a total of 5 items for $52. They had some of the Christmas pieces that I wanted last year from the parks, but I just couldn't pull the trigger on spending the money for them in the parks. I just had to share in my excitement! (Disclaimer: not my pictures.) I ended up buying two of the bowls so I can give one to my sister in law for her birthday. I also bought a stuffed Meeko ornament since he's my favorite from Pocahontas.

ETA: We didn't spend a whole lot of money out there, so this splurge wasn't really out of our budget. We kept costs down in other places.

I wouldn't have been able to resist! I really like these but couldn't do the original prices either.

 

[FQLover]

Those bowls are just plain adorable. I love them!! So happy that you treated yourself (and your SIL) and at a better price.

 

[DnA2010]

I agree that these are important life skills, but I don't think that the only way to teach these skills is by kids being burdened with 100k+ student loan debt.

Can’t agree more.

 

[Ngwira]

Fastpasses done for our November trip! No slinky dog dash this time (I'll keep checking), so glad we rode it in August! I plan to buy Disney gift cards at BJ's for the discount and 5 percent cash back on my Discover It card. I was able to max out this quarter on my Discover on restaurants at WDW during our August trip. Made $75 for money I would have spent anyway.

In debt dumping news, I made a $2500 principal payment on my student loan and it looks like I'm finally seeing the end of the tunnel. Should be done with that soon.

Unfortunately, our 35 year old kitchen cabinets need to be replaced so it appears that we may be adding to our debt soon in the way of a loan for a kitchen remodel. I have gotten quotes from Home Depot and just like our windows, will likely finance it with some type of zero percent loan.

 

[DisneyMandC]

Fastpasses done for our November trip! No slinky dog dash this time (I'll keep checking), so glad we rode it in August! I plan to buy Disney gift cards at BJ's for the discount and 5 percent cash back on my Discover It card. I was able to max out this quarter on my Discover on restaurants at WDW during our August trip. Made $75 for money I would have spent anyway.

In debt dumping news, I made a $2500 principal payment on my student loan and it looks like I'm finally seeing the end of the tunnel. Should be done with that soon.

Unfortunately, our 35 year old kitchen cabinets need to be replaced so it appears that we may be adding to our debt soon in the way of a loan for a kitchen remodel. I have gotten quotes from Home Depot and just like our windows, will likely finance it with some type of zero percent loan.

I make my FPs on Sunday! Hoping to get slinky dog dash. Looks like it's going to be a packed weekend based on so many hotels being sold out. I'm hoping that everyone will be going to Epcot for the last weekend of F&W and not HS!

 

[imbatman]

In a week, I'll be on a plane for the "work" trip to WDW! Arriving in the evening and I'm popping over to DS to upgrade to an AP. Also, saved up enough throughout the year for the MVMCP for the December trip! I gotta pack this weekend so that my mind can chill out. Dear hurricane Florence, please go away.


DD is out and about in her new-to-her car. She is so excited and is already understanding the crunch of having savings, as we have to register it with our state's astronomical prices. But she is budgeting ahead and preparing.

 

[Ngwira]

I make my FPs on Sunday! Hoping to get slinky dog dash. Looks like it's going to be a packed weekend based on so many hotels being sold out. I'm hoping that everyone will be going to Epcot for the last weekend of F&W and not HS!

Which Christmas Party are you doing? We are doing Friday, November 9th and FW on the 8th.
SDD is so so fun! Exhilarating!!! I'm hoping to get it as a 4th FP since all of my FPs end around noon and we have AP's so we can hop.

 

[DisneyMandC]

Which Christmas Party are you doing? We are doing Friday, November 9th and FW on the 8th.
SDD is so so fun! Exhilarating!!! I'm hoping to get it as a 4th FP since all of my FPs end around noon and we have AP's so we can hop.

We're backwards, going to the very first party on November 8th and then HS on the 9th! We haven't done MVMCP in ten years and I can barely remember a thing about it, so I'm really excited to go. We're going to Universal for two days after that, which will also be the first time we've been in 10 years, and our first time seeing all of the Harry Potter stuff!