4 answers
Sophia
Student
Japan
1
Question
Asked
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As someone who got into a top university but didn’t receive enough financial aid, I’m now facing over $160,000 in student loans. Is it smarter to take the risk and invest in a Business Economics degree, hoping it leads to a stable career, or should I take a more affordable path, even if it means walking away from a school I’ve worked my whole life to reach?
I’m incredibly driven, career-focused, and have poured years into building a future I believe in. I’m an AP Scholar with Distinction, I have all As, I’m a leader in multiple service, finance, and business clubs where I mentor younger students, especially girls, to dream of something bigger than themselves. I captain my varsity basketball and soccer teams. I’ve written pieces that were featured in The New York Times. I’ve volunteered at children’s cafeterias, English centers, and orphanages, supporting and helping marginalized kids, teaching them English and math. I’ve done everything right. But even with all of this, the weight of student loans makes me feel like it might not be enough.
I do have a plan: graduate in three years, take summer community college classes, and apply early for internships. I’m not afraid to work hard. But I still wonder: am I building a future, or am I setting myself up for decades of financial stress?
For anyone who’s been in my shoes, please, I’d genuinely appreciate your advice. Is it worth taking on this kind of debt for the education and connections, or would you make a different choice if you could go back?
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4 answers
Amanda Brown
Director of Quality and Regulatory
4
Answers
Munich, Bavaria, Germany
Updated
Amanda’s Answer
Hi Sophia,
This is a really great question- and a really difficult one. It sounds like you have already accomplished a lot at a young age, so and I have no doubt you will be successful regardless of if your decision to go to a University that will cost $160k, or a different less expensive one.
You have to consider a lot of different things here. First, i suggest you should look into the type of loans you are taking out, and what the repayment schedule would be- how much monthly payments, of how much, and for how many years. This is something i wish i did- its one thing to sign papers to receive $10k for this quarter of tuition, which you don't have to pay back until 4+ years from now. Its different to see what this all adds up to, with all the quarters of your education- and how much this is going to cost you monthly. For example, if after your graduate you pay around $1000 per month in school loans, for 15 years- even if you have a great career and a great paying job, this will likely impact your life- how much available income you have- which you may want to use for other things, such as saving for a house, travel, more school.
Thinking back for me, i spent a lot of money and i went to a really good school. I can say i left university almost 20 years ago, with much less debt than $160k, and I'm still paying it off today. I think i made this decision when i was too young to understand what finances and financial responsibility looks like, which has impacted my life in what I am able to do and not do today. But if i could go back and do things differently, I would. I definitely take out less money in school loans (I would work during school and pay off tuition directly, and i wouldn't take out loans for living expense), and i would even consider going to a less expensive school. In retrospect for me, the best part of college was the friends I made, and the experiences I had. I don't think the school I went to helped me get to where I am in my career, or with any connections that helped my career. All of this happened after I graduated, and i started making connections in my professional field.
So for me- i would say its not worth it. But- again- I have no doubt you will be successful regardless of if your decision, but this is a decision you have to make for yourself.
Wishing you the best!
Amanda
This is a really great question- and a really difficult one. It sounds like you have already accomplished a lot at a young age, so and I have no doubt you will be successful regardless of if your decision to go to a University that will cost $160k, or a different less expensive one.
You have to consider a lot of different things here. First, i suggest you should look into the type of loans you are taking out, and what the repayment schedule would be- how much monthly payments, of how much, and for how many years. This is something i wish i did- its one thing to sign papers to receive $10k for this quarter of tuition, which you don't have to pay back until 4+ years from now. Its different to see what this all adds up to, with all the quarters of your education- and how much this is going to cost you monthly. For example, if after your graduate you pay around $1000 per month in school loans, for 15 years- even if you have a great career and a great paying job, this will likely impact your life- how much available income you have- which you may want to use for other things, such as saving for a house, travel, more school.
Thinking back for me, i spent a lot of money and i went to a really good school. I can say i left university almost 20 years ago, with much less debt than $160k, and I'm still paying it off today. I think i made this decision when i was too young to understand what finances and financial responsibility looks like, which has impacted my life in what I am able to do and not do today. But if i could go back and do things differently, I would. I definitely take out less money in school loans (I would work during school and pay off tuition directly, and i wouldn't take out loans for living expense), and i would even consider going to a less expensive school. In retrospect for me, the best part of college was the friends I made, and the experiences I had. I don't think the school I went to helped me get to where I am in my career, or with any connections that helped my career. All of this happened after I graduated, and i started making connections in my professional field.
So for me- i would say its not worth it. But- again- I have no doubt you will be successful regardless of if your decision, but this is a decision you have to make for yourself.
Wishing you the best!
Amanda
Heather Legeer
Education Specialist
3
Answers
Austin, Texas
Updated
Heather’s Answer
As someone who has about half that in student debt, I would prioritize financial freedom. While the opportunity to attend a top university is incredibly valuable, the additional $160,000 in student loans would significantly increase my financial burden. Opting for a more affordable path would allow me to manage my existing debt more effectively and avoid further financial strain.
Additionally, it's important to consider that the interest on $160,000 in student loans will have you paying off significantly more than the principal amount. With interest rates for federal student loans currently around 6.53% for undergraduates and higher for graduate loans, the total repayment amount can be substantially higher than the initial loan. This could mean years of financial strain and limited financial flexibility.
If I could talk to my younger self, I would tell myself, to avoid debt at all cost.
Additionally, it's important to consider that the interest on $160,000 in student loans will have you paying off significantly more than the principal amount. With interest rates for federal student loans currently around 6.53% for undergraduates and higher for graduate loans, the total repayment amount can be substantially higher than the initial loan. This could mean years of financial strain and limited financial flexibility.
If I could talk to my younger self, I would tell myself, to avoid debt at all cost.
ian eeles
3
Answers
Heredia, Heredia Province, Costa Rica
Updated
ian’s Answer
I definitely would like to tell you that the career path you have chosen truly offers many opportunities to consistently find work and open new doors.
In fact, the market is always evolving.... there is always a need for economic analysts, stock market specialists, business consultants, financial advisors, and more. Economics is one of the fundamental pillars in a fast-moving and dynamic world.
From my own perspective.... someone who studied languages, business, and technology. I have realized how essential economics is and how much it complements other fields. It opens excellent horizons both professionally and personally.
Additionally, salaries for economists in strong or corporate companies can definitely give you opportunities to recover and pay off your student loans.
Economists are always needed! It is such an important role.
On top of that, you can also work in different areas or transition into related roles, such as administration or financial management.
So yes.... You have made a smart choice, and your future is full of possibilities!
In fact, the market is always evolving.... there is always a need for economic analysts, stock market specialists, business consultants, financial advisors, and more. Economics is one of the fundamental pillars in a fast-moving and dynamic world.
From my own perspective.... someone who studied languages, business, and technology. I have realized how essential economics is and how much it complements other fields. It opens excellent horizons both professionally and personally.
Additionally, salaries for economists in strong or corporate companies can definitely give you opportunities to recover and pay off your student loans.
Economists are always needed! It is such an important role.
On top of that, you can also work in different areas or transition into related roles, such as administration or financial management.
So yes.... You have made a smart choice, and your future is full of possibilities!
Kendra Unger
Learning & Development
6
Answers
Seattle, Washington
Updated
Kendra’s Answer
Hi Sophia! You have a bright future ahead of you no matter which choice you make.
I accrued over 120k in student loans between both undergraduate and a graduate degree, both at highly prestigious institutions. I would not have accumulated that much debt if I could have done it again. For me, ultimately it was forgiven through the public service loan forgiveness program, but I was still paying off mostly just the interest even a decade later, and not really decreasing the principal balance of the loan. That said, I chose a career that was not as well paid, at least at first and had an earning cap. Your situation might be different.
I also did not make the most of the networking opportunities I had, and am no longer really in touch with anyone from either my college or grad school. I came from a very different socioeconomic background, and didn't know how to live in that kind of world. If you do decide to attend the college, make sure you are able to leverage those connections when it comes to job searching. In my experience, a lot of those connections come outside the classroom, but your field might be a bit different.
That said, I did receive an excellent education. Could I have gotten something just as good elsewhere? Hard to evaluate that. That said, in my career now, I have worked with a wide range of excellent professionals from many institutions across the globe, some more prestigious and some less. I have never noticed a difference in coworkers based on where they attended. You sound like a driven, passionate person, you probably would excel in any setting. If you have another option for your degree that is also attractive, even without the appeal of the name, I would highly consider that option.
Another factor to consider is that you may want some flexibility. Very few adults I know now are still in the field they first studied. Sometimes a logical next step, sometimes a complete pivot. I myself wound up in a different field. I'd advise that you include the possibility that you might want a change from the field you think you want right now. Leave yourself options.
Wishing you all the best! I know that you'll make the most of it wherever you go, and I hope that you get advice from many people on this choice. At the end of the day, though, sometimes you just have to trust your heart and gut.
I accrued over 120k in student loans between both undergraduate and a graduate degree, both at highly prestigious institutions. I would not have accumulated that much debt if I could have done it again. For me, ultimately it was forgiven through the public service loan forgiveness program, but I was still paying off mostly just the interest even a decade later, and not really decreasing the principal balance of the loan. That said, I chose a career that was not as well paid, at least at first and had an earning cap. Your situation might be different.
I also did not make the most of the networking opportunities I had, and am no longer really in touch with anyone from either my college or grad school. I came from a very different socioeconomic background, and didn't know how to live in that kind of world. If you do decide to attend the college, make sure you are able to leverage those connections when it comes to job searching. In my experience, a lot of those connections come outside the classroom, but your field might be a bit different.
That said, I did receive an excellent education. Could I have gotten something just as good elsewhere? Hard to evaluate that. That said, in my career now, I have worked with a wide range of excellent professionals from many institutions across the globe, some more prestigious and some less. I have never noticed a difference in coworkers based on where they attended. You sound like a driven, passionate person, you probably would excel in any setting. If you have another option for your degree that is also attractive, even without the appeal of the name, I would highly consider that option.
Another factor to consider is that you may want some flexibility. Very few adults I know now are still in the field they first studied. Sometimes a logical next step, sometimes a complete pivot. I myself wound up in a different field. I'd advise that you include the possibility that you might want a change from the field you think you want right now. Leave yourself options.
Wishing you all the best! I know that you'll make the most of it wherever you go, and I hope that you get advice from many people on this choice. At the end of the day, though, sometimes you just have to trust your heart and gut.