I am SO sick of hearing story after story of people who obtained a worthless college degree and have nothing but $60,000 in student loan debt to show for it! I am even more sick of hearing stories of people who did not even obtain the degree and have piles of student loan debt to show for it!
As a person who teaches about personal finances to thousands and having counseled hundreds of people one-on-one, I see situations of immense student loan debt nearly every single day!!!
Here is how the situation unfolds. The individual graduates high school and really has no clue about what they want to do with their life. They end up attending a very expensive private school and obtain a degree that has low market demand.
How did they pay for the education? They financed it!!! Now they are in a position of huge debt and have a degree that won't support the debt. Even worse, they don't even finish the degree!
I know that the private school education may be prestigious, but there are very few instances where the private school education is any better than a great state school! And the prices are way better at the state school!
Consider this. I attended Purdue University and received a fantastic mechanical engineering degree. This degree is in great market demand, AND it was VERY CHEAP since Purdue is a state school! I then studied at Clemson University and received my MBA. This degree is in great market demand, AND it was VERY CHEAP since Clemson is also a state school.
I had the option of attending a private school for my engineering education. Even with the incredible amount of "scholarship" offers, I would have had to pay TWICE the amount of full-price at Purdue! For a private school MBA, I would have had to pay FOUR to EIGHT TIMES the amount of full-price at Clemson!
Listen, I want you to get an education. I want you to get that degree! But please consider the overall cost of the degree!
PLEASE! PLEASE! PLEASE! PLEASE!
PS – Student Loan Debt is not bankruptable. You WILL have to pay it back someday.