30k student loan debt, 2 years to go. what should I do?
July 21st, 2010 | 
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britt asked:
I currently have over $30,000 in student loan debt (all but a few thousand in parent PLUS loans). I’m still at least two years from any kind of degree but with the economy the way it is I’m afraid to continue and increase the amount of debt that I have. I’m considering stopping school for right now and getting certified as a Pharmacy Tech (and hopefully making 14 an hour) and working full-time until I figure out exactly what it is that I want to do and pay off some debt. But, then I’ll have to start paying back my student loans and I would lose any insurance coverage that I have from my parents. What should I do? ANY serious advice would be much appreciated.
Consolidate Student Loans
I currently have over $30,000 in student loan debt (all but a few thousand in parent PLUS loans). I’m still at least two years from any kind of degree but with the economy the way it is I’m afraid to continue and increase the amount of debt that I have. I’m considering stopping school for right now and getting certified as a Pharmacy Tech (and hopefully making 14 an hour) and working full-time until I figure out exactly what it is that I want to do and pay off some debt. But, then I’ll have to start paying back my student loans and I would lose any insurance coverage that I have from my parents. What should I do? ANY serious advice would be much appreciated.
Consolidate Student Loans
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Parent PLUS loans are not yours to repay, just so you know. You have gone this far, but you should seriously stop borrowing! You are attending schools you can not afford. Consider getting about 3 roommates and working full time and then getting a second part time job!! Ouch!
Consolidate School Loans
Well, here is your situation.
The Parent PLUS loans are not owed by you. They are owed by your parents who will have to start repaying the loans if you drop out of school. Even if you have limited or no income, those loan payments will start because they are based on your parents’ ability to pay—not yours.
Other student loans you have can be deferred or payments reduced based on your income situation. You can check out that program here:
So regardless of what you work out on your own student loans, you would need to make the payments for your parents on the PLUS loans, and you will need to get insurance coverage of your own (which should be provided through your employer).
I don’t know if you can do all that on $14/hr or not. It also depends on how many hours you get to work each week/month. Have you talked with your parents about this? That would be the first step because they really assumed all that debt for you and since they ultimately have to pay it back, they should play a major role in your decision.
If you’re going for a liberal arts degree, then you indeed may have a difficult time landing a job making enough money to pay back the loans (which will basically double over the next 2 years). If you’re going to be a medical professional, lawyer, veterinarian,CPA, some specialty profession like that, you should do OK.
Remember, you’re looking 2 years down the road. The economy has been in the dumps for over a year now and there is a good chance it will have recovered after another two years.
My advice to any young person is always this: If you know what you want to do and you need a college education to qualify for that job, then you should use whatever resources you have to get the degree.
If you’re just going to college because you either don’t know what to do next or have no idea how you want to earn your living, and you’re just getting a general degree (art, liberal arts, literature, history, etc.) then you need to “pay as you go.”
Of course there will be some exceptions to this, but in general it doesn’t work out financially for most who borrow thousands of dollars to get a general degree that doesn’t qualify them for anything in the workplace.
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Your overlooking an important fact…bad economy. That also mean chances of getting a job are very low. That would mean you are in debt, you got in debt just to get in debt, and you’d be struggling to survive. I would continue with school. Hopefully in two year the job market will be better and by then you will have graduated hopefully and can get a job in the field that you want, and hopefuly pays more than 14 and hour. Also, don’t forget, you are not the only one who is in debt. I know of people in more debt then you from college, but soemtime in there life it will get payed off, considering you go to college to get a good job and that pays well, so in the end, you would be saving money by going to college than from not going. As a last note, the large majority of people who say they will take some time off from school and go back later, never end up going back.