Student Loans: Don’t Do It!

Spread the Money

THIS POST MAY CONTAIN AFFILIATE LINKS. PLEASE READ MY DISCLOSURE FOR MORE INFO.

It’s the Most Dangerous Debt You Can Have

Student loans are so dangerous because in most cases, you cannot get rid of them even if you file for bankruptcy. You heard right, even if you don’t have a roof over your head and food to eat, you are still responsible for paying back your student loan debt.

To me, having debt is like being a slave. You will always have to answer to it and you can’t escape it. You have to do things that you hate just so you can pay them off.  If you really think about it, why would anyone want that?

I still have a huge mortgage to pay off and I have to go to work every day because if it.  I have to commute on a subway like a stuffed sardine twice a day, five times a week.  But I made a decision that I wanted to live in a nice, new, fancy condo within NYC and this was the price I was willing to pay for it. However, if worse comes to worse and I lose my job, I can file for bankruptcy and start all over again. But you don’t have that option with student loans.  You’re stuck with it forever…until you pay it ALL off.

 

Are You Thinking About Going to An Expensive School?

Once upon a time, I was 18 years old and I was very idealistic. I wanted to go far away for college. My dream school was Hawaii Pacific University.  I got accepted early and I was ready to go. But my parents put a stop to it. Not so much because of the cost, but because of the distance. They were afraid my head would get hit by a surfboard and I would be hospitalized (I’m not a surfer, they were just overly paranoid). And it would take them at least 10 hours to get to the hospital to visit me.

That was the main reason why they did not let me go away to school. I was very upset with them for many years for not letting me go.  Instead I went to my safety school which was part of the City University of New York.  I also had to commute two hours each way (including summers).  I missed out on the whole college dorm experience and I was very bitter about it. But that’s a different story.

Back then, a semester cost about $1600 at CUNY. Crazy cheap right?  As angry as I was at my parents for not letting me go, today I am so thankful that they didn’t. Mostly because I graduated college having no student loans to pay back.

If your parent’s aren’t rich and you didn’t get a full scholarship to go to an expensive private university, then just go to a state or city school or a Community College.  It’s that simple.  You do not want to go to a school where you have to take out massive student loans for it. I don’t think it’s worth it and you will regret it big time.

The Things You Want Today Will Not Be What You Want Tomorrow

If you are going to college for an undergrad degree, chances are you really don’t know what the heck you want to do with your life. So why would you go to a fancy, expensive private school to figure out what you want to do? Then when you graduate, you are drowning in student loan debt and you still have no idea what you want to do.

If you are one of those young, ambitious, idealistic types, (I know your type) you urgently feel you must study what you are passionate about and go for it. Nothing will stop you or get in your way.  Again, that’s all good and fine if you don’t have to worry about paying your tuition, room and board.  But if you do, then forget about it.  You will end up regretting it.  I hear endless stories of people regretting ever taking out their student loans. If they could do it all over again, they would have just gone to a public state or city school. Or even a Community College.

I know many people that study what they are passionate about, usually it’s in an industry that pays a low wage. When they graduate and start working in their field (if they are lucky enough to get a job) they end up hating it. Mostly because they are drowning in student loan debt and what they thought was their dream job won’t even cover the monthly payments to pay down their debt and their rent.

As you get older, you will want different things in life than what you had wanted at 21. You will want to buy a house, maybe start a family, buy a nice car, take vacations, etc.  But if you make the mistake of taking on student loan debt early in your life, you will have to delay or even just forget about having all the things I just mentioned.  You will be too pre occupied paying off that nagging student loan bill that comes every single month.

If you are thinking about going to Graduate School and you need to take out student loans, just forget about it. Unless you are going for an MBA or a medical degree and you know a nice paying job will be readily available to you immediately after you graduate, then go for it.  This is acceptable because your new lucrative career will pay off your entire student loan debt within a few years.

Just Google the graduate degree you are interested in and see what the median pay rate is. If it is enough to pay your entire student loan debt off in 3 years or less, then I say go for it.

Listen people, the truth about having a career is that everyone eventually hates what they are doing.  So if you think your dream job is being a therapist for example, you will hate doing it soon enough. When you have to work everyday, people get tired of doing the same thing everyday.  Anyone who tells you different is lying. You will hate your job even more when you have student loans to pay off.  Many people end up working in a field that is completely unrelated to what they studied and went into debt for.

Having said that, why would you go into massive debt learning about something you are eventually going to hate anyway?  Keep that in mind if you are thinking about taking any student loans out.

If You Already Have Student Loans, You Have to Be Responsible For It

If you already have student loans, you are SOL. You have no choice but to pay them off.  Federal student loans are much better than Private student loans.  Federal can’t increase their interest rates and they have more flexible options for you to pay them off.

A great website that can help you is forgivemystudentdebt.org   This site has invaluable information on student loans and Public Service Loan Forgiveness. You should definitely check it out.

Private student loans are the worst.  If you are stuck with this, good luck to you. Look into debt consolidation. I hear there are not many options for paying this one off and they can and they will raise your interest rates.

I hear a lot of young people having this attitude about not caring or even plan on paying back their massive student loan debts.  They say things like, ‘I’m already drowning in $100K of student loan debt so I don’t care, it’s not my problem’.

If everyone was irresponsible as that, what would our society become?   Should I just not pay my mortgage? Should I stop going to work every day?  I wish I could. But I can’t.  Maybe I’m the real sucker here?

To me, having that kind of attitude is no different then walking into a bank and robbing it.  You are responsible for the choices you make in your life.  Bad or good, you made them and you have to pay for them.  Nobody put a gun to your head and forced you to take out these foolish loans.  Grow up and do everything you can to pay them back.  Or just don’t take them out at all in the first place. That’s the true point of this article.

 

The Only Two Exceptions for Taking Out Student Loans

Here are the two exceptions on when you should take out student loans.

1 – You get into an elite school and you are studying in a field that will lead to a career that makes you a lot of money.  And you can then pay off your student loans within a few years. Not more than 3 years.

2 – You are expecting a huge inheritance that can pay off your entire student loan debt.

Besides those two exceptions, I really do not see any other reasons why anybody should get into student loan debt.

Related Content:

College Students: Follow the Money and Do Not Study What You are Passionate About

How to Punch Your Debt in the Face

I’m Too Cheap to Have Kids 

7 Books That Will Change Your Financial Life

4 Comments
    • CJ
    • CJ

Add a Comment

Your email address will not be published. Required fields are marked *