College is expensive.

January 14, 2006 9:59 AM

College is expensive. I'm resigned to accumulating a certain amount of debt, but I'm increasingly afraid I may not make it through four years with my credit rating intact. I'm quickly becoming cynical about the high price of education in America. Advice?

I'll try to keep this short and non-whiny:

I began college last January at age 26. For the first two and a half semesters (that's spring, summer, and half of fall) I continued to work 40hrs./week at my long-term job (a food cooperative), which compensated me to the tune of around 12K/year post-taxes. Federal loans (about two thirds unsubsidized/one third subsidized) covered almost all of my tuition, though no books, room, board, etc., but I made too much money in 2004 to qualify for a Pell grant. I accumulated some credit card debt: school expenses, meals eaten out due to my crammed schedule, etc.

I quit my job in late October when it became clear that any money earned past that point (around $9800) would probably pretty much be coming out of my aid package for the 2006-2007 school year.

I'm now living as cheaply as possible, annd supporting myself in ways calculated to maximise my Federal aid: as much non-taxible income as possible, applying for scholarships, etc. I'll probably get a part time job soon, but have found that fewer hours usually equals lower pay, less flexible schedules, shittier management and more unpleasant working conditions.

Here's what's spooked me: I recently got my credit report, and my total debt is up to around $18000. That may not sound too bad to some of you, but I'm used to living on $10000 or less a year. It's $14000 of student loans plus $4000 on credit cards. I'm beginning to actually wonder if completing my degree is worth it--I'm a biology major--since I'm not looking forward to a lucrative career at the other end.

I want to know: How'd y'all get your degrees without losing your credit rating/sanity? Was it worth it?

posted by pullayup to education (35 comments total)

If you need to have a job work for the school. Most schools will give you a tuition break to employees, research assistants and teaching assistants. I worked as a teaching assistant my last two years of college and recieved 9 credit hours free (out of 15) and a nice salary. You also might consider signing up as a residential assistant for the free food and living expenses if your college has housing. I graduated from a private university with only 6K of debt after four years by doing these things and winning a few scholarships.
posted by Alison at 10:08 AM on January 14, 2006

The key to your credit rating is to pay your bills on time.

"Although it is often a concern for student borrowers, having multiple student loans and/or a large amount of education debt does not necessarily mean you will have a poor credit score. How well you managed credit in the past is far more important."

But it sounds like you're more worried about your earning potential and the cost-benefit analysis than your credit rating?
posted by footnote at 10:22 AM on January 14, 2006

If you make the payments on time, your credit rating will be fine. (Though if you have a huge debt, lenders may decide that you can't handle any additional debt -- but that's a separate issue and the threshold is probably higher than you think). Having a large debt and making payments without a problem is good for your credit rating.
posted by winston at 10:26 AM on January 14, 2006

you have to take a step back and figure out if an investment in Bio is worth it.

Is the major you have chosen something that can be used in your particular field? Do you plan on going on to get a grad degree? Do you want to change fields after graduating?

I work in HR for a fortune 500 company in Chicago - I hire scientists regularly. In my experience, Biology majors are a 'dime a dozen'. At least in my area, a BS in Bio is not really in demand and many people aren't able to find the kind of job they envisioned when choosing that major. I see a lot of Bio majors ending up in retail or something unrelated.

There is, however, something to be said for having that 'piece of paper' under your belt. You can be considered for many opportunities that you otherwise may not have the chance to be looked at for.

Isn't is sad that college is the new high school in a lot of ways?
posted by mockjovial at 10:26 AM on January 14, 2006

I'm still a student, have >$25k in federal student loans, make a pittance in my research assistant job, have some credit card debt, and have excellent credit. I think you'll be fine as long as you keep things under control and pay your bills on time.

Try to maximize federal loans as much as possible. You can put off payments as long as you're in school half-time, or for many other reasons.
posted by zsazsa at 10:47 AM on January 14, 2006

You need to get rid of the credit card debt. It will *kill* you.

Talk to Student Aid. Tell them you're dying. Apply for the absolute maximum in student loans, in all the different loan categories. Use that loan money to pay off your credit card debt, and do NOT rack up further credit card debt. Stafford loan rates are capped at 8.25%, and you don't pay it as long as you're in school. Credit card debt starts at 20% and goes up from there, and you have to pay it while still in school. The choice is clear.

Agree with the others that such tactics as being an RA can be quite lucrative for small amounts of work.

You can also consider a cheaper school. Not just the tuition, but the location: big cities are much more expensive to live in than rural areas.
posted by jellicle at 10:55 AM on January 14, 2006

If you're going to stick with biology and want to find a job with just a BSc, consider, seriously, being a research assistant to some professor(s).

The lab experience (and references) will help you land a technician position somewhere. Preferably molecular biology, bioinformatics, or genomics/proteomics. These areas should give you the experience to be hired on as a research associate with a pharmaceuticals company or a technician position with an academic research lab. Avoid positions where you're just washing glassware - it won't really help your post-graduate job prospects. Of course, there are other options for other specializations. Good cell culture (both microbial and eukaryotic) technicians carry some demand as well.

However, you pretty much *need* a PhD (or at the very least MSc) to go anywhere in the biological sciences, career wise. Alternatively, you may be able to pick up a specialization like kinesiology and work as a trainer or a prosthetics fitter. On the other hand, marine biology or ecology may give you the option to work for the government (forestry services, &c) or with mineral exploration companies (although you'll probably need experience in geology or geography/sociology).

Unless you're absolutely sure that you want a career in the biosciences, switching majors into applied science (engineering) will afford you a far greater chance of being able to land a "real job" with just an undergraduate degree. Heck, an undergrad chemistry degree will be more useful than an undergrad biology degree.

I agree with alison (although I think that her relative luck/pay is pretty rare) - residential assistant/advisor afford you subsidized housing and food, but you'll have to deal with dorm-living undergrads (and it will impact your social life, unless all your friends are also dorm dwellers since you'll be on call many -if not all - nights of the week). Your relatively advanced age may make you more competetive to be hired as a RA against other undergrads.

(I did three years of undergrad research assistanceship, have a philosophy/biochem-molecularbio/zoology BA, worked a couple of years for a pharmacueitcals company, been a kinda-sorta TA for a year, am weeks from being conferred a MSc in Immunology, starting a PhD program in neuroscience in May. I likely won't land another "real job" until I'm 38. My lifetime earnings potential will never match that of many of my friends who didn't go to/dropped out of college.)

Best of luck!
posted by PurplePorpoise at 10:56 AM on January 14, 2006

I'm beginning to actually wonder if completing my degree is worth it...

Here's an analysis.
posted by cribcage at 10:56 AM on January 14, 2006

Here's what's spooked me: I recently got my credit report, and my total debt is up to around $18000. That may not sound too bad to some of you, but I'm used to living on $10000 or less a year.

That's the wrong comparison. Student loans get paid back after you graduate when you'll be making more than $10K.

If you're 26 and used to even a semblance of a life, you might well not be living as cheaply as possible. Having your own room is not a necessity, it is a luxury, and an expensive one. Check out the rates in the dorms, or be willing to move somewhere where you have a roommate -- not an apartment-mate, but a roommate. University meal plans are usually quite cheap, so long as you stick to them.

You can always apply elsewhere, including private schools, and see if you get a better deal once aid is factored in.

But it sounds like you're about halfway through and have $18K in debt. If you trim things a bit, you should be able to graduate with $30--36K in debt, which is not much more than a moderate car loan.
posted by ROU_Xenophobe at 11:05 AM on January 14, 2006

Asker here, clarifying/explaining a few points:

1. Lifetime earning potential isn't really an issue--I want to be able to do things that I enjoy. I'm sure that I would do well (both in college and afterwards) as a Pharmacy major, even to the point of doing most of the same coursework. On the other hand, I really, really don't want to spend my life working in any of the jobs that would be obvious, easy choices with that education.

1 and a half. That being said, I'm not absolutely wedded to biology as a major, but it's what I love. Does anyone have suggestions for applied sciences/schools with respected programs therein? I'm doing well so far (4.0, biology honors, etc.), though at a middling midwestern state school. I've thought about transferring to do cell/molec. bio at the University of Michigan, where a couple friends have graduated. I'm totally intimidated, though.

2. I'm not worried about the student loans wrecking my credit; it really is the credit cards (which are covering my living expenses while in school) that keep me up at night. They're much higher interest, and I have to keep up my payments while in school.

3. I absolutely, positively, completely am planning on taking an advanced degree. I'm not sure what it will be (an MLS has even crossed my mind) but I want to be able to afford to do it.

4. I'm not eligible for work-study (I made too much money), which seems to severely limit my possible avenues of on-campus employment.
posted by pullayup at 11:17 AM on January 14, 2006

I'd second what mockjovial stated. In that you need to either have a plan for making money with your degree (and it seems that you'll need to get at least a Master's to do so) or you have to love learning what you are learning so much that the debt for college is not an investment but a true payment to those folks for teaching you what you desire to learn.

I got an undergraduate degree in Philosophy (sort of) because I loved thinking about thinking and wouldn't trade it for anything. But the only way i'd get a job with it is completing a PhD. So now I am back in school getting a Masters in Finance; once again because I enjoy thinking about counting, but this time I know that I will be able to pay off my loans when I'm done. It was a choice of going to school for 6 more years and being dirt poor while doing it, or going two more years [working my arse off full-time] part-time. I'd love to go PurplePorpoise's route, but my temperment is such that I prefer to not scrape by for extended periods of time if i can help it.
posted by iurodivii at 11:19 AM on January 14, 2006

Oh, yeah: I already am going to a cheap school, all things considered: the University of Toledo, in beautiful northwest Ohio. Ohio's public colleges are among the most expensive in the nation (because Ohio's government is crap, I assume), and around here, cheaper means a certificate from the community college.
Thanks for the responses so far, they've helped lift this morning's black mood.
posted by pullayup at 11:22 AM on January 14, 2006

Technically, I'm about one-quarter (33 hours) through. My aid situation will improve, of course, if I can continue to not work without defaulting on a credit card. So, I might be looking at $40-45000. Still scary.
posted by pullayup at 11:26 AM on January 14, 2006

pullayup - pharmacy. It's usually a 2 year course after the undergrad degree, no?

Stick with it, man. It's worth it. Sure, you won't be able to finance a brand new beamer right after landing your first job - but you'll be able to pay back that student loan.

Sorry about being a downer on biology - but if pharmacy is your goal, it's a good one.

Like others have pointed out, max out on student loans and pay off the credit card. Pharmacists will continue to be in demand (aging population) pretty much everywhere in the Western world.
posted by PurplePorpoise at 11:40 AM on January 14, 2006

Apply for one of those 0% for a year credit cards, and transfer your balance. Do this every year. Find a cheaper school, if possible.
posted by knave at 11:41 AM on January 14, 2006

Public != cheap, and low tuition != cheap. Cheap is low price after all aid is factored in. Look around at the web pages of private schools and look at both their tuition *and* their average financial aid, esp. grants and scholarships. You might be surprised. Or you might not, in which case you'll have wasted a bit of time.
posted by ROU_Xenophobe at 11:45 AM on January 14, 2006

Pharmacists will continue to be in demand (aging population) pretty much everywhere in the Western world

That's not at all a sure thing, actually. I looked into pharmacy school a couple of years ago, and there was talk on the pharmacist forums about automation coming in and taking a lot of jobs away. The massive chain drugstores have also railroaded the little guys in most towns, and working conditions in the chains are sometimes pretty grueling. Also, it's at least a 3 year course.

But anyway, it sounds like the poster doesn't want to be a traditional pharmacist anyway. What about a Masters in Public Health, or a Physician's Assistant degree? The PA degree could definitely take advantage of the combination of aging population and attempts to cut back on healthcare expenses by insurers who want to minimize the number of doctors visits they pay for.
posted by hazyjane at 11:48 AM on January 14, 2006

Can't you take out private educational loans to cover your cost of living? They've got to be cheaper than your credit cards.
posted by footnote at 11:49 AM on January 14, 2006

No, no, no, dude, I DON'T want to be a pharmacist! That's what I hear every time I step into an advisor's office:

me: I'm not really interested in Pharmacy.

advisor: I'm really glad you're considering our Pharmacy program! Many students find a job before they graduate!

me: No, no, no!

advisor: Good! I think you'll really appreciate the professional contacts, opportunities for membership in national organizations, and potential to go to work right out of college.
posted by pullayup at 11:51 AM on January 14, 2006

If you do *nothing* else, GET RID OF THE CREDIT CARD.

You can't afford credit. Cut the thing in two, and *then* you can say you're living as cheaply as you can.

I've been there, done that, and the root of all evil is credit cards. Seriously.

If you haven't got the cash, you can't afford 'it'

Life (and education!) is tough enough, without adding to your woes with CC Debt.
posted by DrtyBlvd at 11:53 AM on January 14, 2006

But, I'm afraid a couple more years and a few more tens of thousands of debt will start to make those drug rep jobs look better and better...
posted by pullayup at 11:53 AM on January 14, 2006

Sorry pullayup - I associated pharmacy major with, well, pharmacy.

So you want to get into designing pharmaceuticals?
posted by PurplePorpoise at 12:32 PM on January 14, 2006

Apply for one of those 0% for a year credit cards, and transfer your balance. Do this every year.

My husband and I took a personal finance class a while ago, and the teacher advised that this is generally not a good idea, though I can't for the life of me remember why. (Husband is saying that it is possibly like a cash advance, and that sometimes they will actually start interest on it immediately. Dunno if that's accurate.) She instead suggested: cut up the credit card(s), consolidate your card debts into your lowest percentage card where this is advantageous, and prioritize paying off your debts by percentage and by amount.

Hell, take a personal finance class. It's worth every penny, and will give you a solid base of knowledge with which you can make informed decisions. It also eases money anxieties quite a lot. I can't recommend it enough.
posted by moira at 12:39 PM on January 14, 2006

I absolutely, positively, completely am planning on taking an advanced degree ... but I want to be able to afford to do it.

Don't forget that if you go straight to an advanced degree, your student loans will stay in deferment until you complete that degree too. So like others have said, make as much of your debt be in student loans as possible.
posted by advil at 12:48 PM on January 14, 2006

Make sure your parents don't claim you as a dependent. If they do, you will no longer be eligable for many grants and loans.
posted by Afroblanco at 2:02 PM on January 14, 2006

Have you talked to your financial office?

They usually are aware of lots of unclaimed scholarships, and more importantly it is your school who decides how much you get in subsidized loans (you know, the ones where the feds pay your interest while you are in school).

If you go and talk to them, especially about your desire to not use your credit cards for living expense, often they can increase your student loan amounts. Much better than credit cards.

Sometimes the folks there are really overworked and cranky, but if you are polite and persistent, you'll probably get more than you expect.
posted by ugf at 3:34 PM on January 14, 2006

Oh, also, I just wanted to chime in to say get your degree. Even if it's a degree that you don't work in, having a bachelor's really makes a difference for your future earnings.
posted by ugf at 3:35 PM on January 14, 2006

Don't forget to apply like crazy for scholarships. I managed to do stuff like go to Spain for 2 months for an out-of-pocket price of $250 just by applying for tons of different $1000 awards. My SO is in art grad school, and though he has a pretty good aid package, he's paying for the expensive materials by nickle-and-diming his way through various merit awards. If you're doing well academically and have a few cool experiences to talk about in your why-I-deserve-the-money statements, you stand a good shoot. So many people don't apply because they can't be bothered.
----
Might as well try for as many student loans now as it is possible to go to grad school for free. I'm not sure about MLS programs, but all my friends who have done PhDs (particularly in the sciences) seem to get free rides (as long their willing to teach bio101).
posted by lalalana at 4:05 PM on January 14, 2006

1. Gradschool can be lucrative. I'm getting an MFA in poetry, which is arguably 10x more useless than grad work in biology, and I make $22k/year in a taxed stipend.

2. Work under the table. Wait tables, find a local/indy bookstore job, help do odd jobs or type papers.

3. Keep track of your spending. Seriously, keep an excel spreadsheet and make a note every time you spend any money at all. Also, buy portable snacks like nuts & fruit to keep you going when you don't have time between class to head home and eat a real meal.

4. When you graduate, get a social services job. Many have some gov't connection that will halve your loan debt. I think working in a public library counts (someone else can explain this a lot better than I did). And of course the Peace Corps, Americorps, and other government-funded service programs like this will give you extra money that can only be used for education expenses.

5. Apply for grants all the time. I never did this & kick myself every time one friend tells me how she's going to China or India for the summer and it's all paid for by grants. She's a good student, yes, but she's also persistent and applies for every grant she might possibly qualify for.
posted by soviet sleepover at 8:26 PM on January 14, 2006 [1 favorite]

Don't go for work-study; the work is usually menial and unfulfilling. I didn't qualify for work-study, but there are always tons of well-paying jobs around campus that pay real money and offer tuition breaks if you are lucky. I managed to pick up work as a research assistant my sophomore year by spending a lot of time in the computer lab and having good relationships with my professors. Even if you end up washing glassware at first there is a good chance that you will luck into something more useful and better paying and depending on funding departments are always looking for an extra set of hands.

Also, there are always jobs in admissions or enrollment doing office work and answering phones. Usually the pay sucks, but you will get an employee tuition break if you work more than a certain amount of hours. This is not work study and if you are going to try for a part-time job you might as well get one with higher potential pay-off.
posted by Alison at 9:45 PM on January 14, 2006

College is expensive, but lack of an education is even more expensive. Seriously -- the lost wages, benefits, all the intangibles like quality of life and self-esteem -- it's worth it. I say this as someone who got an undergrad degree at age 32 and is currently in grad school. And trust me, your BS is probably worth a lot more than my BA and MFA combined.

I've paid my way through both degrees with working 20-30 hours a week in a non-work-study campus job, a few scholarships and lots of student loans. I will be about $40,000 in debt when I'm done, but student loans are what is known as good debt. Cheap interest, and well worth every dime you will repay. (Unlike cars and things that depreciate.)

It may make you feel better to know that your $14,000 in student loans is, I believe, below the national average for students who borrow. Education costs a lot more than it used to, that's for sure.

Lots of good advice here. Student loan debt shouldn't affect your credit score unless you fail to pay them back. Pay off the credit card debt ASAP; there is a big difference between 5 percent interest on deferred student loans and 12 or 15 or 18 percent on credit cards. Call your creditors, tell them you're a student and ask for lower interest rates. Beg, threaten to take your business elsewhere, but don't apologize. It's perfectly legit to ask for a better deal.

Take some money management classes from Consumer Credit Counseling, your school or a bank or other community resource. I did this and learned a lot of valuable info. One is that there is a strategy for paying off credit cards as quickly as possible: You pay them off in order from highest to lowest interest.

I always found applying for scholarships to be hardly worth the time; but YMMV. Definitely try to get a job in your field of study; I think this give you a big job-hunting and networking advantage over students who work at a coffee shop.

Hang in there. Statistics (and my personal experience) show that it's really worth it.
posted by blogrrrl at 10:52 PM on January 14, 2006

Think about distance education.

the 3 most respected distance learning institutions in higher education? thomas edison state college, excelsior college and charter oak state college.

The us navy has a relationship with charter oak.

http://forums.degreeinfo.com/ is a good place to start learning.

You will save a lot of money if you spend at least some of your college years this way.
posted by merlin17 at 1:43 AM on January 15, 2006

Chiming in to say good things about working for the university you are attending. Not as a menial work-study type, but as a full-time employee -- I did this for grad school and paid nothing for an almost-completed M.S. I had a great job as a technical writing instructor. I loved my students, which helped.

If you love Bio and want to stay with it, minor in something else that will set you apart -- technical writing or another form of communications, possibly? You'd be surprised at how few people can really write well, and how this skill (especially if you have an actual minor, or similar stamp of legitimacy) can set you apart when applying for jobs.

Best of luck --
posted by mdiskin at 5:46 AM on January 15, 2006

Just a few hints -

Consider working outside biology. I work in an IP law firm (patents, etc.) and we employ a number of well-credentialed scientists to evaluate and assist with patents and litigation. They make pretty good money, and some of them just have BS degrees.

Consider taking out more money in loans than you actually need. The interest rate on your student loans is much, much, much lower (and is tax-deductible) than your credit cards - even more so if you consolidate your loans now or after school. I did this during law school and I have no credit card debt and am able to pay three times my loan payment each month. I pay 0.95% interest on the loans, because I consolidated and I do direct withdrawal, and I've been on time (because of direct withdrawal) for more than a year.

Just some tips that helped me when I was in a similar situation.
posted by MeetMegan at 3:44 PM on January 15, 2006 [1 favorite]

Apply for one of those 0% for a year credit cards, and transfer your balance. Do this every year.

My husband and I took a personal finance class a while ago, and the teacher advised that this is generally not a good idea, though I can't for the life of me remember why.

Two reasons. One, and the most important, the CC companies know people want to try to do this. So why keep offering it? Because people miss deadlines (in case of interest defered loans) or fail to keep their spending down. If you have heard the expression "the house always wins," you should know that gambling with credit card repayment schedules is no different than gambling in a casino. Most people screw up trying to do this. Don't be one of them

Two, FICO scores are calculated on many factors (the exact calculation is a trade secret though you can aproximate with the FAKO scores) and one of them is longevity of account. Opening an account and closing it a year later is more harmful to your score than keeping one open for many years. If you try to dodge this by keeping the account open the card companies will be tickled - open accounts gather charges, on average.

The above mentioned people are right. Get out from under that CC debt. The speed and extent that it can grow if you hit a bad patch is nothing less than amazing and can be ruinous.
posted by phearlez at 7:54 PM on January 15, 2006